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•“If we take an India-wide average of a CIO’s duties with technology and business at the two ends, there will be a strong tilt towards the tech end, with about 60-70% of their time focused on it. The balance 30 % too, is generally not directly to business issues, but how to interpret technology to implement certain business decisions”

- Says Gartner’s Iyengar

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oVijay Mehra, CIO-Essar Group lists 5 Fundamental Responsibilities of CIO as:o Technology o Applicationo Datao Business Processeso Organization Structure

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Atul Jayawant, President-Corporate IT and the Group CIO-Aditya Birla Group : “If you start doing something after your

competitor has done it, it’s no longer strategic. I would say the CIO’s job is to enable innovation and do things before the business asks for it.”

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General Managers who are told that IT can create competitive advantage and enable transformation of business, find it difficult to evaluate the IT function & contribution of CIO

It may be because –Expectations from IT are over-estimationsExpectations from IT are under-estimations

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Perceptions about ITISSUE IT is a Liability IT is an Asset

Are we getting value for money?

IT is a cost IT is making significant contribution

How important is IT? Irrelevant to us Interesting success stories

How do we plan for IT?

Plans by specialists Part of business thinking

Is the IS function doing a good job?

General cynicism about IT track record

Is no longer an important agenda

What is the IT strategy?

Many applications are being developed

Focused on a few key initiatives

What is the CEO’s vision of IT?

Limited role Role in business transformation

What do we expect of the CIO

Specialist functional Manager

Viewed as a contributor to business thinking

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CIO & CEO ---

CIO - Is he viewed as a • Specialist• A part of the strategy formation group

The CEO -• may find an ally in the CIO• may find IT as a strategic tool• may find IT as irrelevant to the

organization

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o A CEO may look at IT as a strategic resource for gaining competitive advantage

o A CEO might consider IT as a costo CIO’s role and actions are crucial in

ensuring that it is deployed as a Competitive Advantage and CIO must add value

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CEO’s belief in IT CEO’s Vision CIO’s vision on transformational capabilities CIO’s relationship with CEO Teamwork of CIO with the top management Understanding of the business Understanding of newer technologies CIO’s personal ability to contribute to:

Business thinking Vision for change management of change process Innovative use of IT

CEO’s capability to integrate IT into business strategy

FACTORS THAT AFFECT CIO’S PERFORMANCE

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CIO – The Added-Value Framework

Enablers of added-value: Focus on business imperatives Shared vision for IT Concentrated IS development effort External IT success stories Business contribution beyond IT IS performance track record IS/Business executive relationships

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PROFILE OF THE CIO - WHO ADDS VALUE

Behavior is loyal to the business

is open

Motivation Is oriented towards goals, ideas and

systems

Competencies Is a consultant/facilitator

Is a good communicator

Has IT knowledge

Experience Has had an IS function analyst role

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KEY MESSAGES FOR CEOs

Position IT and the CIO as agents of change Focus on achieving effectiveness, and not

efficiency from IT Institutionalize business values for IT Build an executive team that includes the

CIO Manage IT, as integral and not as adjunct,

to the business

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TOP MANAGEMENT RESPONSIBILITY * Create a business vision of an IT enabled company * Involve a trusted alley as CIO * Position the IT Function as a Strategic Function

CIO’s RESPONSIBILITY

* Focus on Business Imperatives * Build and manage infrastructure * Build a team of trsuted alleys * Create a shared vision of the role of IT * Develop and manage relationships

LINE MANAGEMENT RESPONSIBILITY

* Provide room for incorporating IT * Acceptance of shared responsibility * Own your systems

THE IT MANAGEMENT : Roles & Responsibilities

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BusinessVision

IT Vision/IT Strategy

Strategic Vectors

BusinessStretegy

General Management

ITManagement

ITTechnologists

Technology ConceptsStandardsProtocolsPerformanceCompatibilityGuidelines

Key IssuesOperating Systems Data BasesApplicationsCommunicationsProcessors

TechnologySelectionHardwareSoftware

IT Knowledge - 10-20 % IT Knowledge - 40-60 % IT Knowledge - 80-90 %

Business Knowledge - 80-90 % Business Knowledge - 40-60 % Business Knowledge-10-20 %

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CIO and CTO

o CTO should focus on technology

o CIO should focus on strategic use of IT for customers and top management

o In India these two are interchangeable, whereas in USA, it is the CTO who looks after technology

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CIO and CTO

• “If you have a room full of CIOs, you can be sure the conversation will veer towards the topic of CIOs having a seat on the company board”

-Says ICICI’s Group CTO, Praveer Vohra

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2008 GLOBAL CIO SURVEY Capgemini Consulting

• Two third of the CIOs believe that IT is critical to business innovation

• The survey highlights that technologies, as well as users, are dramatically evolving

• That is why it is time for CIOs to find a seat at the business innovation table

• CIOs can really deliver business transformation thru the IT function by innovation

• As per Survey, there could be “Top Innovators” where innovation is identified as a priority

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2008 GLOBAL CIO SURVEY Capgemini Consulting

Characteristic Top Innovator

Average Orgn

Understanding of IT by business leadership

77 % 38 %

Effective relationship management between IT and the Business

94 % 67 %

Very strong delivery of fundamental It services

83 % 56 %

The CIO reports to the CEO/COO 75 % 53 %

IT being a partner of the business rather than a supplier or utility provider

88 % 40 %

Top Innovators are characterized by :

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2008 GLOBAL CIO SURVEY Capgemini Consulting

Challenge % ge

Short term operational matters 52

Insufficient capabilities 37

Difficulties in recruiting skilled staff 35

A lack of business sponsorship 25

Poor business and IT Collaboration 24

CIOs cite their most important challenges to innovation as :

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2008 GLOBAL CIO SURVEY Capgemini Consulting

To build a kep role for the IT function in business innovation, the CIOs must recognfigure the IT organization and its governance by :

Separating IT fundamentals from business innovation and identifying the correct balance between the two

Maximizing available resources and skills by effectively using technology partners and outsourcing

Linking technology to innovation instead of cost to show that IT can change the business for the better

Partnering with businesses in key innovation areas to improve business processes and identify innovative technology that brings value to the business