CIO Main Screens Sydney Final

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DIALOGUES 2006 CIO Executive Council

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DIALOGUES 2006 CIO Executive Council

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Linda Kennedy Editor CIO Magazine CIO Executive Council

Top 10 Reasons We Are CallingThis Conference “CIO Dialogues”: 

Top 10 Reasons We Are Calling This Conference “CIO Dialogues”

Top 10 Reasons We Are CallingThis Conference “CIO Dialogues”: 

Top 10 Reasons We Are Calling This Conference “CIO Dialogues” A virus ate my Powerpoint #10

Top 10 Reasons We Are CallingThis Conference “CIO Dialogues”: 

Top 10 Reasons We Are Calling This Conference “CIO Dialogues” The CIOs on our panels were too busy to prepare a presentation #9

Top 10 Reasons We Are CallingThis Conference “CIO Dialogues”: 

Top 10 Reasons We Are Calling This Conference “CIO Dialogues” “Dancing With the CIOs” required too big a stage #8

Top 10 Reasons We Are CallingThis Conference “CIO Dialogues”: 

Top 10 Reasons We Are Calling This Conference “CIO Dialogues” John Howard said he would only come if we let him give a very long speech with no questions afterwards #7

Top 10 Reasons We Are CallingThis Conference “CIO Dialogues”: 

Top 10 Reasons We Are Calling This Conference “CIO Dialogues” Because we figured that after eight years of CIO Conferences, it was about time the audience did some work #6

Top 10 Reasons We Are CallingThis Conference “CIO Dialogues”: 

Top 10 Reasons We Are Calling This Conference “CIO Dialogues” I thought my staff said CIO Catalogues #5

Top 10 Reasons We Are CallingThis Conference “CIO Dialogues”: 

Top 10 Reasons We Are Calling This Conference “CIO Dialogues” I wanted more time on stage #4

Top 10 Reasons We Are CallingThis Conference “CIO Dialogues”: 

Top 10 Reasons We Are Calling This Conference “CIO Dialogues” We felt quite sure that anything with the word “dialogue” would mean analysts and consultants wouldn’t bother to come #3

Top 10 Reasons We Are CallingThis Conference “CIO Dialogues”: 

Top 10 Reasons We Are Calling This Conference “CIO Dialogues” Someone else was already using the name, “The Vagina Monologues” #2

Top 10 Reasons We Are CallingThis Conference “CIO Dialogues”: 

Top 10 Reasons We Are Calling This Conference “CIO Dialogues” Because we needed the money #1

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DIALOGUES 2006 CIO Executive Council

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Jurgen Oschadleus Director, ActKnowledge CIO Executive Council

The Heart of Influence:: 

The Heart of Influence: Jürgen Oschadleus, MBA PMP Director: Act Knowledge Pty Ltd Communication That Builds Influence Equity

Personal Skills Most Pivotal for Success as a CIO: 

Personal Skills Most Pivotal for Success as a CIO (The State of the CIO 2006, CIO, March 2006, p.68) “79% of State of the CIO 2005/06 respondents said that the ability to communicate effectively was the #1 personal skill most pivotal for success in the CIO role.”

Power is…: 

Power is… Influencing the business direction and strategy, making tactical business decisions (Mike Kennedy) The ability and capacity to perform effectively (Karen Bard) When any technology investment requires the endorsement of the CIO (Derek Goh) Your accountability to get things done (Hemant Kogekar) I’d like to think it’s influencing (David Issa) The Power Seat, CIO, March 2006, p.68)

The Need for Influence: 

The Need for Influence The new kind of business hero must learn to operate without the might of the hierarchy behind them. The crutch of authority must be thrown away and replaced by their own ability to make relationships, use influence and work with others to achieve results. (Rosabeth Moss Kanter, When Giants Learn to Dance, 1990)

The Influence Hierarchy: 

The Influence Hierarchy Control: Force/Fear/Threaten/Brainwash Coerce: Pressure/Manipulate/Intimidate Compliance: Incentive/Benefits/Rewards Cooperation: Convince/Encourage/Coax Commitment: Respect/Honour/Trust Long Term Short Term results

The Influence Quiz: 

The Influence Quiz “People will only listen to you when they know you care”. (Zig Ziglar)

The “Heart” of Influence: 

Watch over your heart with all diligence, for from it flow the springs of life. (King Solomon, Prov. 4:23) Information flow in a communication network is the lifeline of a business enterprise; it is like blood flowing through the veins and arteries of the body. (Samuel Eilon, Management Control, 1979) The “Heart” of Influence

Communication which Destroys Influence: 

Communication which Destroys Influence Failing to listen Operating in “sphere of concern” Focus on logic alone

The Components of Influence: 

“Now the proofs furnished by the speech are of three kinds. The first depends on the moral character [ethos] of the speaker, the second upon putting the hearer into a certain frame of mind [pathos], the third upon the speech itself, in so far as it proves or seems to prove [logos].” The Components of Influence Aristotle (Rhetoric, 350BC)

The Influence Equity Model: 

The Influence Equity Model

Logos: 

Logos

Pathos: 

Pathos

Ethos: 

Ethos

Developing the Mind of Influence: 

Developing the Mind of Influence

Lessons from the Farm: 

Lessons from the Farm We reap what we sow Harvests take time

What am I?: 

What am I? As broad and sturdy as a wall As round, smooth and sharp as a spear Squirms like a snake Feels like the trunk of a tree Flaps like a fan Swings like a rope

Summary: 

Summary Influence Equity Ongoing process Addressing needs, interests and expectations Seeking win-win solutions Developing relationships Establishing credibility and trust Communicating positively

Summary: 

Summary

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http://www.actknowledge.com info@actknowledge.com Our communication is more than the words we speak; it’s a reflection of who we are, who we become, and what we achieve (Jürgen Oschadleus, Heart of Influence)

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DIALOGUES 2006 CIO Executive Council

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Peter Simon Infrastructure Management Specialist APC CIO Executive Council

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® © 2005 APC Corporation Bridging the Gap Between Physical Infrastructure & IT Innovation Available, adaptable, manageable physical infrastructure for next-generation data centres Peter Simon Infrastructure Management Specialist

Data Centre Evolution: 

Data Centre Evolution Issue: There has been a gap between the evolution of physical infrastructure design in Data Centres and IT innovation. Result: Innovative and dynamic IT systems are being supported by physical infrastructure based on 40 year old designs. 2006 and beyond 1960s Data Centre design based on mainframe technology Information Technology constant change & design innovation 1U servers Blade servers VoIP Date Centre design innovation has been only recent

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Network Critical Physical Infrastructure (NCPI) NCPI Reliable Business Operations Each layer depends on everything below it NCPI: Environmental Services The critical foundation of business continuity

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NCPI NCPI Challenges High operating and service costs Increasing availability expectations Regulatory requirements Server consolidation Rapid changes in IT technology High density blade server power/heat Despite these challenges it is possible to gain significant business benefits through strategic standardisation of environmental services, bringing substantial financial and operational improvements to your business.

Virgin Blue - NCPI Upgrade: 

Virgin Blue - NCPI Upgrade Industry: Travel Application: Primary data centre & secondary airport sites NCPI Requirements: Facilitate rapid growth Central management Key Business Benefits: Availability – Goal of 99.999% made realistic Agility – Addition of 20-30 new servers simplified Cost – Monthly operating costs significantly reduced

Toyota Financial Services: 

Toyota Financial Services Industry: Financial Services Application: Primary Data Centre & VoIP System NCPI Requirements: Reliable & manageable precision cooling Central management of NCPI by IT department Allow for company growth Key Business Benefits: Availability – Manageable power & cooling environment Agility – Ability to scale NCPI as company grows Cost – Maintenance costs greatly reduced

Voyages – NCPI Build: 

Voyages – NCPI Build Industry: Travel Services Application: Primary Data Centre NCPI Requirements: Install capacity quickly as business changes/grows Limited build due to heritage listing restrictions Visibility to status of environment Key Business Benefits: Availability – 24-hour for national systems Agility – Able to expand / change NCPI quickly Cost – Significant capital saving – no raised floor

Discussion: 

Discussion

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DIALOGUES 2006 CIO Executive Council

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COFFEE BREAK CIO Executive Council

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DIALOGUES 2006 CIO Executive Council

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Vincent Nair Managing Principal, Australia & New Zealand WIPRO Infotech CIO Executive Council

AUSTRALIAN CIO DIALOGUESWill Outsourcing and Off Shoring do it for your Business?   Vincent Nair Managing Principal WIPRO Infotech Australia/NZ: 

AUSTRALIAN CIO DIALOGUES Will Outsourcing and Off Shoring do it for your Business? Vincent Nair Managing Principal WIPRO Infotech Australia/NZ

The Agenda: 

The Agenda Trends in Outsourcing 1 2 India as a Pivot in GDM 3 4 Indian IT Industry – Best Practices 5 6 7

Differences – Insource/Outsource/Off Shore: 

Differences – Insource/Outsource/Off Shore Current Future Future Future Future In Sourced Infrastructure Co Sourced Infrastructure Near Shore /Off Shore Off Shore Time (Years) $ Savings & Technology Savvy Outsourced but on Shore 1 2 3 4 5 Up to 50% Budget Savings

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Peter Mahlar - CIO Coles Myer “ I want to know what is over the horizon. Don’t talk to me about bits and bytes. If I am going to invest millions with your company, you need to talk to me about the Future…” The CIO Noise in Australia

Global Trends in Outsourcing: 

Global Trends in Outsourcing IT Services & Offshore Market Offshoring is a key element of outsourcing strategy in US and Western Europe India – A pivot of the offshoring strategy – Is a cost, quality, value based destination Trends indicate increasing momentum towards utilizing Indian capabilities in the future Source: IDC Can Australia leverage offshoring more? Has Australia explored Indian opportunities enough?

Outsourcing Trends in Australia: 

Outsourcing Trends in Australia % OF COST SAVINGS EXPERIENCED For the most recent infrastructure services for which you have offshored, please select the types of services you have purchased Preference for countries Source, IDC Australia Offshore Outsourcing Survey, 2005

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The CIO Journey

Leading to 2nd Generation Outsourcing: 

Leading to 2nd Generation Outsourcing

Offshore Outsourcing: 

Offshore Outsourcing Benefits & Drawbacks

Evolution of Global Delivery Paradigm: 

Evolution of Global Delivery Paradigm Source: Forrester Integrated Delivery Unified Processes for Customer Centricity Geo – Agnostic virtual delivery Future of Global Delivery

India as a Pivot in GDM: 

India as a Pivot in GDM Source: IDC and Forrester Low Cost Global Delivery Player Worldwide Offshore IT Services Share by Region, 2004 Total = $9.8 Bn. India well established on the Global Outsourcing Stage

ICT = India’s Competitive Tool – Why?: 

ICT = India’s Competitive Tool – Why? Highlights India has 28% of suitable talent among all cost competitive offshore locations Key stakeholders are taking initiatives to further enhance India’s talent proposition Significant primary infrastructure is being built in leading centres ~ 25 million sq feet of Class A real estate was available in 2005 End-to-end network uptime for India and other offshore locations vis-à-vis US levels (~99.95%) India’s business environment is competitive with those in other countries Key government policy interventions have catalyzed growth Increase in domestic spending on IT Performance = Low = High 1 2 3 4 5 India based players have managed to maintain quality and cost leadership vis-à-vis other countries Source: Nasscom-McKinsey Report 2005, Wipro Estimates

Indian IT Industry – Innovating Constantly (1/2): 

Indian IT Industry – Innovating Constantly (1/2) Wipro Example: Global Delivery Capabilities India pioneered the Global Delivery Model Talent Development – A critical success factor Pioneering the Global Delivery Model Wipro Example: Strong 360º Portfolio Indian IT Industry: Value added Offshoring Leading IT companies have transformed into Full Service Providers Building complete services portfolio

Indian IT Industry – Innovating Constantly (2/2): 

1. New Service Lines 2. IP / Point Solutions based on deep domain understanding Non linear Business Models Business Impact SLA Delivery Differentiation through Innovation 80 of the world’s 117 SEI CMM Level 5 companies are based in India R&D centers by GE, Microsoft, IBM, DELL, CISCO, Intel etc. set up in India Quality Leadership Indian IT Industry – Innovating Constantly (2/2) Wipro Example: The Wipro Way Wipro Example: Innovative Delivery

Future Evolution of Global Outsourcing: 

Future Evolution of Global Outsourcing Driving Business Agility Service Oriented Architecture Standards Based Components Virtualised Resource Model End to end Management Flexible Operating Cost Models Flexible Sourcing Models

Our Preparedness thru Integrated Delivery Framework : 

Our Preparedness thru Integrated Delivery Framework PMO – Managed Services Cob IT Framework Transition Phase Life-cycle Management Initiation Phase KAP & Planning Phase Implementation Phase Hand over to Sustenance Deliver Monitor Plan IT Infrastructure (ITIL Practice) Application Services (SEI CMMi) Human Resources (PCMM) Acquire Continual Improvement (Six Sigma) People Process Technology Projects (PMI) Defect Reduction Six Sigma Quality Management Veloci-Q Customer Extranet COCOON I PAT Project management K Net Knowledge Management

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How to outsource How to manage what is outsourced 2 3 What to outsource How to manage what is outsourced How to outsource 3 2 1 What to outsource 1 Questionnaires/interviews Study application inventory, documentation status, demonstrations of applications Offshoreability of applications Application Assessment Application sequencing plan SLA’s Risk mitigation Performance metrics Governance Model Sequencing plan Engagement plan Timelines for transition Change management Cost savings analysis Cultural synchronization Engagement approach Wipro Blueprint : Getting it right the first time Outsourcing - What to and How to

Conclusion: 

Conclusion CIO key competency today is Strategic Thinking and Planning vs operational management. Outsourcing and Off Shoring is no longer an option but an enterprise wide business strategy. India is the destination of choice for outsourcing and off shoring All surveys point to ‘integration’ as the top most technology priority Questions to: Vincent.Nair@wipro.com

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DIALOGUES 2006 CIO Executive Council

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CXO - CIO FORUM CIO Executive Council

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DIALOGUES 2006 CIO Executive Council

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LUNCH CIO Executive Council

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DIALOGUES 2006 CIO Executive Council

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Michel Thiry Founder & Managing Partner Valense Ltd CIO Executive Council

Developing Project-Based Organisations to create Value: 

Developing Project-Based Organisations to create Value Michel Thiry, PMP, TVM

Key Issues: 

Key Issues Generate tangible value for the stakeholders Achieve sustainability in doing so Develop dynamic structures Leverage collaborative relationships Support business benefits delivery

What is Value?: 

What is Value?

Visions of value: 

Visions of value Financial Shareholder Value Organisational Stakeholder Value

Value Creation or Value Innovation? : 

Value Creation or Value Innovation? Competitive Convergence Stakeholder Value Effectiveness Doing different things Sustainable Results Organisational Measures Empowerment Creativity Competitive Advantage Incremental Value Creation Strategic Value Innovation

New visions of value: 

New visions of value

Popular Beliefs: 

Popular Beliefs “U.S. spending on R&D will also have to increase if the country wants to remain technologically dominant.” —Fortune, July 2005 “We need at NEC to increase our R&D spending by as much as 50 percent to keep ahead of the competition.” —NEC Corporation senior vice president, quoted in The Age, July 2005 “The European Commission will today appeal to E.U. countries to increase spending on research and development, or face being out-paced by competitors such as China.” —Financial Times, July 2005 “[Yahoo] spends as heavily on product development and R&D as Google and Microsoft…falling behind in this arms race would spell big trouble.” —Fortune, August 2005

Reality: Money Isn’t Everything !!!: 

Reality: Money Isn’t Everything !!! “Non-monetary factors may be the most important drivers of a company’s return on innovation investment (ROI2).” “There is no relationship between R&D spending & the primary measures of economic or corporate success.” “Superior results, in most cases, seem to be a function of the quality of an organization’s innovation process.” “Collaboration is key.” Strongest link where collaboration well established Weakest link where cross-functional collaboration is difficult Jaruzelski, Dehoff & Bordia – Booz Allen Hamilton, 2005

Is this a collaborative approach?: 

Is this a collaborative approach? Shareholder Value Approach

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Project Current Focus of Project Management Program Management Horizontal integration Portfolio Management Vertical Integration Corporate Strategy Business Strategy Value Creation Value Delivery

Vertical Integration FrameworkPortfolio & PMO: 

Vertical Integration Framework Portfolio & PMO Formulate Strategy Programs & Projects Gather Data Reformulate Strategy Strategic Management Sustainability Ensured by Top Down Process Optimize Effort

Horizontal Integration FrameworkSupply Chain : 

Horizontal Integration Framework Supply Chain Customers Customer Relationship Project Management Supplier Relationship Suppliers Supply Flow Information Flow Procurement Logistics LOGISTICS Project Teams Marketing & Sales Stakeholder Value Approach Enablers Results Program Partnerships Procurement Requirements Expectations

Value-Based Structure: 

Value-Based Structure Business (Strategy) Domains Marketing, HR Devel., R&D, Tech. Devel. Ensure strategic integrity & central support Develop strategic concepts, program proposals & specialist skills Realized Benefits Customer Services & Support Structures Analyze program proposals Implement strategic decisions

The PBO Stakeholders: 

The PBO Stakeholders Top Management Human Resources Portfolio & Line Mgmt Partners Community Customers Regulatory Bodies Program & Project Managers The PBO Responsibilities & Roles

Thank you!: 

Thank you! Michel Thiry, PMP, TVM michel.thiry@valense.com Organizational Consultants Consultancy, Coaching, Training, Research 154, Bridge Ave. London, W7 3AR 88a Lancaster Ave., 1180 Brussels

What is Value?: 

Resources Used (Achievability) Satisfaction of Needs (Benefits) What is Value?

New Visions of Value:: 

New Visions of Value: Real value consists of “achieved benefits”. Therefore there are 2 dimensions to value: The fit with expectations The achievability of the solutions. From: Thiry, 1997 + –

Conclusions: 

Conclusions Robust business model and good cross-functional capabilities Develop global and/or cross-company innovation networks exceptional level of cross-functional cooperation Share investment costs and spread risks Identify priority areas where process improvements will raise the curve the most Focus resources on projects offering the greatest potential

The Business Strategy Context: 

Strategic Level Value Mgmt The Business Strategy Context idea, problem or opportunity

The Decision Management Cycle: 

The Decision Management Cycle Thiry, 2002a

Portfolio Management: 

Portfolio Management Project Selection & Resource Allocation

Program Governance: 

Program Governance Leadership Development of mission & vision Support their achievement Flexibility & ability to maintain vision Program & Project Teams Enable individuals to develop Opportunity to put knowledge in practice Policy & Strategy Ability to implement & adapt mission & vision to align & support business strategy Partnerships & Resources How partners support program How they manage & improve own internal & external partnerships Program & Project Processes Built on organizational processes Adopted with minimal resistance Useful to most stakeholders Flexibility to adapt to evolving circumstances Enablers

Stakeholder Value Management: 

Stakeholder Value Management

Benefits Management: 

Benefits Management Value consists of “achieved” benefits. Therefore there are 2 dimensions to value management: The fit with expectations and the achievability of the solutions. From: Thiry, 1997

Contribution to Benefits:CSFs: Weighted Matrix: 

Contribution to Benefits: CSFs: Weighted Matrix Assess options vs contribution to benefits (weighted CSFs) Agree rejection threshold (min. acceptable benefits level) Eliminate options below threshold Improve other options Reassess using MESA

Achievability: The Concept: 

Highly Achievable Program Optimal Program/ Portfolio Achievability: The Concept Demand Total resources required for new projects Supply Total available resources for new projects “difficulty of realization and implementation” Supply = Demand Thiry, 2003c

Program Benefits: 

Program Benefits Society Results Improved resource usage Value creation Stakeholders Results Identify, agree expected benefits Satisfy as much as is reasonably feasible Teams Results Consistently show team member’s progression Opportunities for empowerment Key Program & Project Performance Results Setting and achievement of organization generic and program specific Critical Success Factors (CSF) and Key Performance Indicators (KPI) Monitor & adjust program & project to achieve them Results

The Need to Develop a Strategic Focus: a link between…: 

The Need to Develop a Strategic Focus: a link between… Clarify strategy Establish targets (scorecard) Make sense of program Establish expected benefits/outputs Continually update/adapt Consider emergent inputs Strategy & Portfolio Programs & Projects

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DIALOGUES 2006 CIO Executive Council

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Greg Thomson Group Executive Hosting & Security, Macquarie Telecom CIO Executive Council

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DIALOGUES 2006 CIO Executive Council

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AFTERNOON TEA CIO Executive Council

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DIALOGUES 2006 CIO Executive Council

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Denis Tebbutt Managing Director, Intersystems CIO Executive Council

Connecting with the Business Unitand driving Innovation: 

Connecting with the Business Unit and driving Innovation Denis A. Tebbutt

The CIO Challenge: 

The CIO Challenge Improve IT Infrastructure and cut costs Demand for solutions supporting New Business Initiatives continues Deliver within the constraints of today’s business environment These are the challenges facing management in almost every enterprise and they are looking for you to satisfy increasingly complex business cases

Innovation- An IT Perspective: 

Innovation- An IT Perspective Innovation n 1: a creation (a new device or process) resulting from study and experimentation [syn: invention] 2: the creation of something in the mind [syn: invention, excogitation, conception, design] 3: the act of starting something for the first time; introducing something new; McKinsey on Innovation in IT Management What Global Executives think about technology and Innovation 81% see it as a critical global trend 43% The best way to improve Operating Efficiencies is through automation Only 29% of Business Managers agree with that!

The Impact of a Mature IT Market: 

The Impact of a Mature IT Market

The Interactions Revolution: 

The Interactions Revolution Raising the productivity of employees whose jobs can’t be automated is the next great performance challenge-and the stakes are high Companies that get it right will build complex talent based competitive advantages that competitors won’t be able to duplicate easily-if at all Ref: The Next Revolution in Interactions. The McKinsey Quarterly 2005 Compliance

The Interconnected Business: 

The Interconnected Business Knowledge Workers Increasingly therefore projects span integration models, driving to rich integration platforms that Gartner calls: ‘Business Process Fusion’

to build applications: 

to build applications to rapidly and seamlessly integrate your enterprise applications Denis.Tebbutt@InterSystems.com

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Movie: 

Movie

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Panel Discussion CIO Executive Council

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DIALOGUES 2006 CIO Executive Council

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THE ONES TO WATCH AWARDS CIO Executive Council

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DIALOGUES 2006 CIO Executive Council

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DIALOGUES 2006 CIO Executive Council

Mental Thought Processes: 

Mental Thought Processes metaprograms (genetics, personality) values & beliefs (culture, upbringing) memories & past decisions (experience)