THE JOURNEY TO HOW THE CIO BECAME A BETTER BUSINESS PARTNER

A MeetTheBoss TV ebook In collaboration with Hewlett Packard Enterprise

39 roundtables, 58.5 hours of conversation, 195 senior IT executives, one question: how can help the CIO become a better business partner? INTRODUCTION: ABOUT THIS EBOOK

MeetTheBoss TV and Hewlett Packard Enterprise have hosted 39 roundtables with senior IT professionals. Each roundtable is a 90-minute deep dive into the business impact of cloud computing, led by the executives and independently moderated by MeetTheBoss TV.

This ebook gathers the highlights, challenges and learning from 39 roundtables, 58.5 hours of conversation, and 195 senior IT executives on the impact of cloud on the CIO.

What does business really think? It’s all here. CHAPTER 1 HOW THE CIO BECAME A BETTER BUSINESS PARTNER: CLOUD’S THREE BIG IMPACTS

By Adam Burns, Editor, MeetTheBoss TV

In 2009, just six short years ago, Android was a babe in arms, were hot, and I interviewed Austin Adams, former CIO for JP Morgan Chase (and, according to Business 2.0, one of the 16 most influential technology people in the world).

Austin’s most vital piece of advice for aspiring technology leaders? “It is being number one a business partner, and number two being seen as a business partner.”

Today, Android is a global powerhouse, netbooks are no more, and that is still one of the challenges for a CIO. But it might not be tomorrow, because cloud computing has broken the fourth wall between IT and the enterprise. It is helping the CIO become a better business partner in three key ways... 1. CLOUD TALKS Cloud computing has changed the relationship between THE LANGUAGE business and IT, regardless of whether or not you are using it. As Carlsberg’s IT Director, Peter Laustsen, says: “Even if we OF BUSINESS don’t deploy or support cloud solutions, we are being forced into trying to emulate the benefits of cloud.” It has done this by talking to the business in the language of the business: speed, efficiency, results. “We have Office 365, for example,” says DEKRA CIO, Martin Bordt. “In the first year, we went from zero to 2,000 people and we’re still going. This is operated by two people: the whole thing – including support.” “Even if we don’t deploy or support cloud solutions we are being forced into trying to emulate the benefits of cloud” PETER LAUSTEN , DIRECTOR OF IT SERVICE & INFRASTRUCTURE, CARLSBERG

2. CLOUD It’s no longer enough for successful technology leaders to BETTER ALIGNS just know technology. With cloud-powered X-as-a-Service, everybody knows technology. Enkelejd Zotaj, Head of IT with IT AND THE Raiffeisen Bank, makes it clear: “You are here because you BUSINESS know this environment, and you can build competitiveness inside this environment using technology and other aspects of the products.” Phil English, Category Director for SABMiller, agrees: “Instead of IT providing a function of deep, technical expertise to do the plumbing, we now need people who understand the business and how the current system and future requirements can fit together.” “You are here because you know this environment, and you can build competitiveness inside this environment using technology and other aspects of the products” ENKELEJD ZOTAJ, HEAD OF IT, RAIFFEISEN BANK 3. CLOUD Lyn Grobler is VP and CIO Corporate Functions for BP. She ENABLES A says she “sometimes cynically” refers to her role as the person who protects the business from the IT department. “IT can get BETTER USER caught up in designing and engineering solutions rather than EXPERIENCE saying ‘what is the outcome the business is looking for?’ The new generation of CIO must ask first: what is it the business needs?” The good news: cloud enables these solutions more quickly, and they can be more simply scaled up and down. And – especially for those with an in-house app store of services – a lot more easily. “IT can get caught up in designing and engineering solutions rather than saying ‘what is the outcome the business is looking for?’ The new generation of CIO must ask first: what is it the business needs?” LYN GROBLER, VP & CIO CORPORATE FUNCTIONS, BP CHAPTER 2 HOW THE CIO BECAME A BETTER BUSINESS PARTNER: CHANGE THE DNA TO SURVIVE

By Clare Forestier, Presenter, MeetTheBoss TV

It’s time for CIOs to get prepared It doesn’t stop there. Legal expertise is for the future, to free themselves becoming a sought-after skill in CIOs. As from just keeping the lights on, Eike Wahl, CIO at Landesbank Baden- Wurttemberg, says: “If I look at how much and start innovating to survive. I am spending on legal advice for each and every contract I sign, and then to put So technology has changed the role of the people in place to ensure SLAs are met, it’s CIOs, the IT department they direct, and starting the discussion about how do we their relationship with the CEO and board want to manage this in the future? Is this of trustees. Arun Tewary, CIO at Emirates the role IT wants to move into?” Flight Catering, sums it up: “It’s not just a change of mind-set; the entire DNA of IT Procurement is another skill the CIO will people has to change.” find handy, according to Per Larsson Chief Infrastructure Architect, Net Entertainment. What extra skillset does the IT team need He says: “One of the roles you need to now? For starters, CIOs need some sales change is procurement. The IT department savvy to sell their work and vision. They needs to be more knowledgeable need to spend time really understanding about ‘overall’ technology, what the how the services work to solve end-users’ commodity is.” issues, in order to successfully position their IT product as a solution. And to do that, the And for any CIO who thinks the requirement CIO and his or her team should, of course, to change is just a wave they can safely be clear on exactly what the products and ride out, heed this warning in Gartner’s services created by their organisation are. new report CFOs Tie Tech to Growth, but “We need more people who can speak the Downplay the CIO’s Role. It says only 16% language of the business and the language of CFOs consider CIOs one of the top three of the process,” says Carlo Capalbo, CIO at leaders they would work with in long-term Gruppo Il Sole 24 Ore. strategic business planning. CHANGING MENTALITY FABIO DI CAPUA IT Director, Averda

“The IT people need to change their mentality and they need to change their skills with systems we don’t control. We are really the super-users, so you need to get people with the curiosity to understand and test out solutions. Your people have two options: either they learn a new tool and how they can give benefit to the business, or sooner or later they are going to be phased out of the company.”

CHANGING METRICS PIERLUIGI FASANO Head of P&C Enterprise Architecture, Swiss Re

“The CIO now partners with the business and co- creates the digital strategy, and of course this changes completely the role of the CIO. We are now measured completely on business metrics. There are very few IT metrics.”

SPEED UP ANDREW WHEATLEY IT Director (EMEA Data Centres), Tupperware

“What we’ve been trying to do over recent years is get technology buying back under control again and say, ‘look, we do understand that your business requirements are changing, we do understand that you need to be faster bringing your functionality features to your customers themselves, but now give us the opportunity to do that’. So we’ve had to reengineer our whole IT organisation internally in order to speed up the time-to-market of our own corporate applications.” THE CHANGING ROLE OF THE IT TEAM

87% 71%

of CIOs will add more staff of digital-ready CIOs strongly this year agree their standing within their business has improved over the past three years

62% 50%

of CIOs in large enterprises of digital transformation say they will have a hard time initiatives will be finding the skilled staff they unmanageable by end of need this year 2016 due to a lack of portfolio management skills

Source: Ernst & Young’s Born to be Digital survey, CIO magazine’s, 2015 state of the CIO report, Robert Half Technology, Gartner Symposium/IT xpo October 2014 CHAPTER 3 HOW THE CIO BECAME A BETTER BUSINESS PARTNER: A SOLUTION PROVIDER PERSPECTIVE

Everybody keeps saying it so it must be true: the CIO role is changing. So how does IT leadership need to respond to this shifting environment?

By Derek Cockerton, Director for Director for HPE Helion

Many of the old certainties of leveraging IT advantages; it’s about theIT department are being contributing to the bottom line of your eroded. For several decades, the enterprise, by using technology not just IT department’s job has been to as an enabler for the business but as a specify IT transformation and core driver for growth. implementation projects, and then to build and manage the internal And this is an area where cloud has a technology infrastructure the major role to play. company needs in order to operate. Results in this area have often focused on project efficiency rather than on enabling business goals.

But that mindset is changing. Those traditionally occupying CIO roles have developed a set of skills to help them in that old IT department model. However, the skills they need now to become an enabler of business value are very different. The new style of IT is not just about Moving to the cloud helps organisations business is done today, whilst at the same become more agile and better cope with time offering new opportunities for the pace of change. We’ve seen that the future. moving to an on-demand infrastructure – and embracing DevOps principles – Look at the range of cloud projects that helps organisations better engage with have been rolled out in recent years. customers, employees and supply chains by The successes, ironically, have not been delivering applications faster and started from within the technology group. more efficiently. Instead, successes have typically evolved out of meaningful conversations within the Whether it is the flexibility of on-demand business group about what its needs are. In capabilities and the ability to scale the other words, it starts with a dialogue business at will, or the appeal of embedded about services. compliance and risk management attributes, IT teams are increasingly using If IT is unable to deliver the services the cloud to help deliver real results. And the business needs – if IT is not having a cloud conversations they are having with valuable dialogue with their business about peers in the business are changing the way what’s required, when it’s needed, and what it needs to look like – then the business is THREE STEPS TO going to go elsewhere. And with the advent BECOMING A BETTER of cloud, they are not going to wait. They BUSINESS PARTNER will go anyway. It’s a question of with whom do they go.

In a recent survey we conducted, 23% of  1. LISTEN TO THE laggard firms believe internal IT hinders BUSINESS their ability to move forward. But it doesn’t Cloud is about rapid have to be that way: 64% of line-of-business deployment: to accelerate what respondents from organisations identified was months or years of work as digital leaders agreed that their use of into just weeks. That’s a game IT actually differentiates them and enables changer because it accelerates them to drive meaningful the delivery of value. It business outcomes. demonstrates that IT is listening.

2. DELIVER VALUE IT has to deliver incremental value to the business, or the business is going to go elsewhere. And with the advent of cloud, they are not going to wait. We need to help IT become strategically relevant to the business.

3. BECOME A BROKER Ultimately, the IT organisation is going to become a broker of services, and any successful cloud project today is fundamentally enabling IT to meet the needs of both internal and external customers. In order to get out in front, IT leaders need either from an agility perspective or from to be much more externally focused and a cost-saving perspective. But in reality, much more connected to the business. they’re flipsides of the same coin. It’s all They need a solid understanding of partner about becoming a more effective and technology ecosystems so that they business partner. can always be on the lookout for new ways of working, new technologies, and Clearly, IT is at the heart of business, new approaches to provide a continuous and IT needs to transform to generate competitive advantage. greater business outcomes. As recently as five years ago, IT was measured on how The most important thing is to understand well it delivered a base level of service what it is you are actually trying to achieve. for the lowest cost. Today, we see a new What is the business value? Is it agility? imperative: aligning people, processes and Is it cost saving? And how are you going technology for rapid service delivery to to measure whether the outcome is really make the entire organisation more agile. successful? Most customers look at cloud

IT di erentiates business outcomes Source: HPE Research, 2015 Report: Profiling infrastructure leaders, February 2015

Leader Mainstream Laggard Our innovative use of IT di erentiates us and enables us to drive real business outcomes – agree 64% 53% 33%

My IT function hinders my ability to drive initiatives that create real outcomes that di erentiate our business – agree 4% 7% 23%