ManagingITinthe21stCentury:TheCIOAgendaBMC’sSoftwareForum,5thNovember,2002GianlucaMarcellino,gianluca.marcellino@accenture.com©Accenture2002Today’sCIOfacesanumberofkeychallengesinplayinganincreasinglycriticalrolewithinthecorporation.Source:AccentureCIOsurveys•Managecostsinadifficulteconomy•Closelyintegratewiththebusinesstoenablemeasurableresults•IncreaseITefficiencyandeffectivenessthroughadoptionofleadingpractices•Launchspecificinitiativestocreatenewvalue•Unleashthevalueofemergingtechnologies•Mitigatesecurityrisks•Ensurebusinesscontinuity•Enableenterpriseintegration•OperateathigherlevelsofinfluenceandresponsibilitywithintheenterpriseTopCIOChallenges©Accenture2002“ITShop”ActivitiesITasServiceProviderTheseCIOsareincreasingtheirinfluenceonthebusinessagendabygettingthefundamentalsrightwhiledrivingtocapitalizeonopportunitiestocreatenewvalue.TransformingITTowardsGreaterValueCreationBusinessValueCreationFunctionalLevelExecutiveLevelSporadic,LowerValueSustained,HigherValueCIOInfluenceonBusinessAgendaLeadingPracticeFundamentalsBeyondTheFundamentalsITasBusinessValueCreator©Accenture2002Achievingtheproperalignmentrequiresconsiderationoftheassettypesdrivingvalueandchangesoccurringwithinthefirmorindustry.PhysicalAssetIntensiveIntellectualPropertyIntensiveLowerChangeHigherChangePrimaryAssetsthatDriveValueIndustry/FirmRateofChangeITStrategyAlternatives•Processknow-how•ManufacturingPlants•Distribution/Transportation•Productorserviceknow-how•RelationshipsIntellectualPropertyIPRelatedtoPhysicalAssetsPhysicalAssetsRelationships•Rapidshiftincustomerneeds•Disruptivechangecausedbygovernmentregulationorcompetition•Newtechnologieschangingtheindustryvaluechain,economicsorproduct/serviceofferingsHigherChange•Gradualevolutionofcustomerneeds,competitivelandscape,governmentregulation,technologiesandsuppliersLowerChangePhysicalAssetIntensiveIntellectualPropertyIntensive©Accenture2002Primaryissues,opportunities,andITstrategiestobeevaluatedmayvarybasedonacompany’spositioningwithrespecttothesefactors.PhysicalAssetIntensiveIntellectualPropertyIntensiveLowerChangeHigherChangePrimaryAssetsthatDriveValueIndustry/FirmRateofChangeITStrategyAlternatives•Newopportunitiestocapturevalue•Highneedforcollaborationanddataintegration•PushtounlockrevenuepotentialofIPassets•PushtounlockrevenuepotentialofIPassets•Highneedforcollaborationanddataintegration•Pressuretominimizecostsacrosstheenterprise•IncreasedscrutinyonITinvestmentopportunities•Changingmarketplacedemands•ContinuousneedfornewcapabilitiesResponsiveSolutionProvidersNewMarketDevelopersEfficient,PredictableOperatorsInformationOptimizers©Accenture2002ITSpendingMix-CostReductionStrategyKeyCharacteristicsITSpendTimeHistoricalResultsofStrategyImplementationofcostreductionITStrategyOnehighpotentialopportunityfor“Efficient,PredictableOperators”istoexecuteastrategythatrepositionsITtoeffectivelydelivercapabilitiesandservicesatareducedcost.•Targetoverallcost-reductioninITspending•Focusnewcapabilitiesondeliveringthehighestbusinessvalue•ExecutequickhitITcost-reductionopportunities•WellpositionedtopursuefurtherITeffectivenessandefficiencyopportunities•HavearoadmapforsuccessinplacetoguideinvestmentdecisionsValueCreationInitiativesStrategy-DrivenChangeInitiativesDiscretionaryIncrementalEnhancementsAdhocInvestmentsNonDiscretionaryRe...
