Gartner executive Programs

January 2009 MEETING THE CHALLENGE

Meeting the Challenge: The 2009 CIO Agenda

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Executive summary The challenges facing CIOs in 2009 Effectiveness meets enterprise challenges Raising effectiveness changes IT and the enterprise CIOs must be decisive and resourceful in 2009 Appendix: Survey demographics Further reading

January 2009

AbOUT GARTNER Gartner.000 associates. Through the resources of Gartner Research. (NYSE: IT) is the world’s leading information technology research and advisory company.com.A. From CIOs and senior IT leaders in corporations and government agencies. Founded in 1979. We deliver the technology-related insight necessary for our clients to make the right decisions.000 distinct organizations. and has 4. This Gartner Executive Programs report is printed with Biolocity inks. we are the indispensable partner to 60.000 clients in 10. to business leaders in high-tech and telecom enterprises and professional services firms. Gartner Executive Programs.com or visit gartner. every day. analyze and interpret the business of IT within the context of their individual role. which contain 30% vegetable extracts. U. Gartner Consulting and Gartner Events. Gartner Executive Programs . we work with every client to research. e-mail info@gartner..200 research analysts and consultants in 80 countries. Inc. For more information. no petroleum-derived ink solvents and a minimum of 55% bio-derived.S. Gartner is headquartered in Stamford. renewable and sustainable raw materials. including 1. to technology investors. Connecticut.

unique insight into the CIO role and the shared knowledge of the largest communities of their kind.AbOuT GArTnEr ExECuTIvE PrOGrAMS 3. programs such as Gartner for IT Executives CIO. Meeting the Challenge: The 2009 CIO Agenda 1 .600 CIOs and IT executives worldwide receive customized advice and participate in peer exchange opportunities through the membership-based programs of Gartner Executive Programs. CIO Signature and CIO Essentials equip members with the tools and knowledge they need to deliver exceptional results for their organizations. access to CIO experts. peer networking opportunities and a rich online experience. Through membership benefits including exclusive research. Members enjoy personalized Gartner service.

2 Gartner Executive Programs .fOrEwOrd Enterprises face a challenging economic environment in 2009. CIOs need to be decisive and resourceful in building an effective enterprise that can meet current and future challenges. To do this. They expect IT to contribute by delivering results in an uncertain economy while reducing enterprise and IT costs.

Florida (U. How will CIOs create effectiveness to meet economic and enterprise challenges? Meeting the Challenge: The 2009 CIO Agenda was written by Mark Mcdonald (group vice president) in collaboration with Jacques begin (senior writer) and Susan fortino (content production director). Harris County. Corporate Express (Australia). Tom Coleman. Massimo Lo Campo. Statkraft (Norway).S. Gustavo Pérez Salinas.S. we would like to thank the many organizations and individuals that generously contributed their insights and experiences to the research. Steven Jennings and Craig Bernard. Whitbread (U. This report addresses the question. Otto Doll. Scott Studham. State of South Dakota (U. Pinellas County. John Johnson and Tom Birch. Magnus Holmqvist. Oak Ridge National Laboratory (U. representing more than $138 billion in T corporate and public sector IT spending.).S. defined as the ability to achieve financial and strategic plans. • Other members of the Gartner CIO research team.526 CIOs who responded to this year’s CIO survey. and Ben Wishart.). Intel (U. Garry Whatley.S. effectiveness gives enterprises the flexibility to meet challenge with change.S. Cisco (U. T CARQUEST (U. Tokio Marine & Nichido Fire Insurance (Japan). Volvo (Sweden).). Elica (Italy). Shuzo Sumi and Tsukasa Makino.S. Lars Holten.S.). including: • he 1. • he contributors to our interviews and case studies: Andrea Pereira.S. Avon (Brazil). Wolfgang Gaertner. Texas (U.). executives face challenging global economic conditions that have not existed for more than 50 years.K.). Florida (U. Sloan Valve (U. Joe Zucchero.In 2009.).S. Effectiveness gains importance in uncertain times. Leading enterprises recognize the seriousness of economic conditions. Deutsche Bank (Germany). Their leaders have confidence in their ability to use IT to achieve results. Seminole County.). Sigma Alimentos (Mexico).). but they are not paralyzed by them. Robert Beach.). Rebecca Jacoby. Paul Alexander. Meeting the Challenge: The 2009 CIO Agenda 3 .

their confidence in the future also becomes challenged. The CIO faces the challenge of delivering improvements needed to raise enterprise effectiveness while managing IT resources and performance. As enterprises face continued economic volatility and uncertainty. Business expectations for IT focus on improving current operations and performance Business expectations Ranking Improving business processes Reducing enterprise costs Improving enterprise workforce effectiveness Attracting and retaining new customers Increasing the use of information/analytics Creating new products or services (innovation) Targeting customers and markets more effectively Managing change initiatives Expanding current customer relationships Expanding into new markets or geographies Consolidating business operations Supporting regulation. Success requires the CIO to take decisive action and to be resourceful across operations in delivering results. Enterprises are responding in different ways. what are the enterprise goals in a volatile market? business expectations of IT call for the CIO to play a role in responding to these questions. Economic conditions challenge enterprise plans and strategies. reporting and compliance Creating new sources of competitive advantage * New question 2009 1 2 3 4 5 6 7 8 9 10 11 12 13 Ranking of business priorities CIOs selected as one of their top 5 priorities 2008 1 5 6 2 8 3 9 12 7 4 13 14 11 2007 1 2 4 3 7 10 * * * 9 14 13 8 2006 1 2 * 3 6 9 * * * * * * * 2012 2 7 6 3 8 1 9 12 11 4 15 16 5 4 Gartner Executive Programs . based on their confidence in achieving results.ExECuTIvE SuMMAry The challenges posed by uncertain and volatile economic conditions are changing enterprise plans and strategies. where should the enterprise focus its attention and resources? • Beyond cutting costs. Two fundamental questions face executives in 2009: • In an uncertain economy.

In today’s environment of cost containment. Leading CIOs are changing their cost structures and using IT differently in order to achieve and sustain results.“raising enterprise effectiveness is the recipe for responding to economic volatility and uncertainty.” 2009 GArTnEr CIO SurvEy Effectiveness meets enterprise challenges An effective enterprise has the confidence to change in challenging times. CIOs can cut costs or reduce the company’s cost structure. raising effectiveness requires changing the enterprise and IT by building on the four pillars that support the enterprise’s ability to achieve results. Enterprise effectiveness comes from a combination of factors The enterprise consistently achieves its financial and strategic objectives Customer and market focus Executives understand customer and market needs The enterprise is effective at opening new markets Executives provide clear and effective leadership The enterprise is resourced properly for future success Organization and management The enterprise has an information management strategy The enterprise has clear and effective governance The enterprise uses IT to gain competitive advantage Executives accurately communicate business needs to IT The enterprise is organized properly for success IT resources IT has the right number of skilled people IT has the funding to meet its commitments IT has the ability to deliver against the enterprise strategy IT has clear and effective governance IT service levels meet business effectiveness IT innovation IT has a culture of innovation IT delivers the technology innovation needed in the business IT has the technical flexibility to respond to changing priorities Enterprise factors IT factors Meeting the Challenge: The 2009 CIO Agenda 5 .

therefore. CIOs build effective IT through transforming resources and management practices Effective IT IT results Adaptive cost structure Increased business impact Focus: Fewer things first IT management Consolidated operations Quality and cost Information and performance business process Businessoriented IT structure Businessaligned IT IT transformation Modernized IT operations Improved IT processes Skilled people Effective governance IT resources Technology Process People Management 6 Gartner Executive Programs . True leaders use these drivers as the basis for transforming IT operations and management to achieve new levels of performance.“Only 17% of CIOs report that their enterprise is more effective than IT. they must concentrate on the drivers of IT effectiveness.” 2009 GArTnEr CIO SurvEy ExECuTIvE SuMMAry Raising effectiveness changes IT and the enterprise CIOs contribute to enterprise effectiveness by raising IT effectiveness.

“35% of CIOs report to the CEO. Every CIO will start at a different place. • odernize the technical infrastructure. 28% report to the CFO. with a focus on imB proving business process. facing unique challenges and setting their own agenda to marshal the resources needed to make the right decisions and deliver results across the enterprise.” 2009 GArTnEr CIO SurvEy CIOs must be decisive and resourceful in 2009 Meeting the challenges of 2009 requires CIOs to lead their organization and enterprise through decisions that have no simple answers. because the business will not B reduce its demand for IT just because you have fewer resources. the business will need all of these in the immediate future. They need to place greater emphasis on the schedule (when) rather than the priorities (why). deliver M better performance and provide greater capacity. as new technologies offer lower cost. using business intelligence to raise visibility and enhancing workforce effectiveness. They will demonstrate this leadership through the following imperatives: • e decisive in setting priorities on actions that raise enterprise effectiveness. These imperatives form the basis for the CIO agenda and its focus on making the enterprise more effective. • e resourceful in restructuring IT to raise its productivity and agility. CIOs need to lead and have the foresight to look at IT in new ways. • o the first things faster. CIOs D need to add schedule to their prioritization process and recognize that other important priorities can wait. CIOs will make the decisions that shape IT resources and the results they create Decisive • Priorities • Expectations • Budgets • Scope • Metrics • Key partners Resourceful • IT organization • Tech infrastructure • IT people and skills • Information • Time • Purchasing power • Applications Results • Revenue • Customers • Control • Cost • Cash flow • Capital • Capacity • Quality Meeting the Challenge: The 2009 CIO Agenda 7 . use less energy. as changing economic conditions render a large project irrelevant.

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