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THE BUSINESS VALUE OF TECHNOLOGY SEPT. 13, 2010

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Business technology innovation is back—and these companies are leading the charge

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THE BUSINESS VALUE OFC TECHNOLOGYONTENTS Sept.13, 2010 Issue 1,278

41 Top 250 Ranked list of business technology leaders 59 All 500 Complete alphabetized list of this year’s InformationWeek 500 winners

25 The Growth Imperative The pressure is on to drive revenue, increase collaboration, and sharpen use of analytics

71 20 Great Ideas To Steal Learn from InformationWeek 500 companies taking new approaches to data visualization, << Vanguard’s Heller looks social media, and more for wow factor TOP FIVE COMPANIES

38 Colgate Is Data Driven 50 Apps For Your Health 30 Vanguard’s Innovation Plan Initiative shifts more than $100 Merck banks on smartphones million toward growth areas to empower patients r Employees volunteer to work e t t E

n on cutting-edge projects a y R 56 y UPMC Looks Outward b n o i t 56 Medical center commercializes

a 33

r Search,Mobility,BI Are Key t s u l l

i technology it has developed

r InterContinental Hotels Group e v o to solve its own problems C focuses on customer loyalty

informationweek.com Sept.13, 2010 5 [CONTENTS]

78 8 Links Research And Connect Reports from InformationWeek Analytics, events, and more 12 Global CIO By Bob Evans A fly on the wall listens in on Larry Ellison and Mark Hurd 14 Secret CIO By John McGreavy All IT projects must have a financial assessment—so why isn’t 16 the financial department complying? QuickTakes 16 Salesforce’s Chatter Goes Mobile 78 Government Innovators App will bring CRM-centric Federal, state, and local agencies collaboration to smartphones apply IT in powerful ways Hewlett-Packard Sues Oracle 83 From Academia To Action HP’s suit over ex-CEO Mark Hurd What IW 500 data reveals about threatens partnerships with Oracle outsourcing, risk, and more 18 Watchdogs Blast Fed IT Execution The criticism aims at the federal government’s execution of the Open Government Directive

20 Firewall For Virtual Machines Find more at Cisco’s Virtual Security Gateway aims to extend security more informationweek.com/500 deeply into virtual infrastructures : Learn about all 21 of the InformationWeek 500 Lessons Learned From Cloud Implementation industries Labor Department CFO James Taylor talks about the hard knocks of moving its financial systems to an online service : View interviews with CIOs of the top companies : Download our 2010 InformationWeek 500 22 Oracle Throws More Muscle At Big Data Analytics Report Integration of its GoldenGate acquisition will improve data capture and real-time integration : Apply for next year’s InformationWeek 500 88 Down To Business By Rob Preston Even first-class corporate cultures must adapt and evolve 10 Editorial Contacts 10 Advertising Index

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6 Sept.13, 2010 informationweek.com

Links Resources to Research, Connect, Comment []More Never Miss So Much More To Find Out A Report Go online to discover more about the InformationWeek 500, including videos, industry profiles, and more. Find out more about some informationweek.com/500 of the industries that make up the InformationWeek 500: IW 500 Goes Virtual At the InformationWeek 500 Virtual Event, you’ll experi- >> Banking And Financial ence highlights from the live conference and exclusive Services content from the InformationWeek 500. Join us Sept. 29. informationweek.com/ techweb.com/iwk500-2010 analytics/2010/bank >> Consulting And Business InformationWeek 500: Services Watch Meet execs at companies informationweek.com/analytics/2010/consult It Now that top this year’s list [ >> Healthcare And Medical Hear what the IT informationweek.com/analytics/2010/health executives at our top-ranked compa- >> Information Technology nies have to say, informationweek.com/analytics/2010/it including Vanguard Group’s Paul Heller. >> Manufacturing Videos will be informationweek.com/analytics/2010/manufacturing posted Wednesday morning, Sept. 15. Subscribe to our more than 700 reports at informationweek.com/500 analytics.informationweek.com

[]InformationWeek Analytics Data Deduplication’s Expanding Profile Take a deep dive with these reports There are many technologies that vendors say will help us get a handle on our storage. In this report, we’ll examine New Plan For Unix whether deduplication makes sense for your company. IBM and others aim to give midrange Unix systems a big- informationweek.com/analytics/dedupe ger role in the data center by rolling out new platforms. informationweek.com/analytics/unix_plan [More InformationWeek] Security Wake-Up Call Interop New York We’ve weathered years of stagnant budgets. Maybe re- See all the latest IT solutions at Interop New York’s comprehen- cent hacking efforts will finally open management’s eyes sive conference and expo, Oct.18-22. to what it will take to protect our data. interop.com/newyork informationweek.com/analytics/security2010

Get Ready For I/O Virtualization Get Published Vendors are offering products to consolidate host Upload your white paper to the TechWeb Digital Library. communications into a single channel. Get the lowdown informationweek.com/whitepaper on the various options before diving in. informationweek.com/analytics/virtualio [Take InformationWeek With You] WAN Stress Busters Facebook, iGoogle, And More Converged services, distributed workforces, private Access our portfolio of social networking tools, including clouds, and data center consolidation are stressing many Facebook applications and fan page, iGoogle widget, WANs. Optimization appliances could be the answer. FriendFeed content,Twitter headlines, and RSS feeds. informationweek.com/analytics/wan2010 informationweek.com/take.jhtml

8 Sept.13, 2010 informationweek.com

Print, Online, Newsletters, Events, Research

Bob Evans Senior VP and Global CIO Dir., [email protected] 412-661-3091 ADVISORY BOARD Dave Bent Senior VP and CIO,United Jeffrey Neville Former CIO, Rob Preston VP and Editor In Chief, [email protected] 516-562-5692 Stationers Eastern Mountain Sports John Foley Editor, [email protected] 516-562-7189 Robert Carter Executive VP and CIO, Denis O’Leary Former Executive VP, FedEx Chris Murphy Editor, [email protected] 414-906-5331 Chase.com Michael Cuddy VP and CIO,Toromont Mykolas Rambus CEO, Art Wittmann VP and Director, Analytics, [email protected] Industries Wealth-X 408-416-3227 Laurie Douglas Senior CIO, Publix Super Markets M.R.Rangaswami Founder, Alexander Wolfe Editor In Chief, InformationWeek.com, Sand Hill Group [email protected] 516-562-7821 Dan Drawbaugh CIO,University of Pitts- burgh Medical Center Manjit Singh CIO, Stacey Peterson Executive Editor, Quality, [email protected] Kent Kushar VP and CIO, Las Vegas Sands 516-562-5933 E.&J.Gallo Winery David Smoley CIO, Lorna Garey Executive Editor,Analytics, [email protected] 978-694-1681 Carolyn Lawson Director,E-Services, Flextronics California Office of the CIO Stephanie Stahl Executive Editor, [email protected] 703-266-6030 Ralph J.Szygenda Former Group VP Jason Maynard Managing Director, and CIO,General Motors Fritz Nelson VP,Editorial Director,[email protected] 949-223-3608 Wells Fargo Securities Peter Whatnell CIO, David Berlind Chief Content Officer,TechWeb, [email protected] Randall Mott Sr.Executive VP and CIO, Sunoco Hewlett-Packard 978-462-5315

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InterSystems www.intersystems.com ...... 15 [email protected] iRise www.irise.com ...... 70 Verizon Wireless www.verizonwireless.com . . . 4 ITWatchDogs www.itwatchdogs.com ...... 68 Vidyo www.vidyo.com ...... 65 Kingston Technology www.kingston.com . . . 22 VMware www.vmware.com ...... 36, 37 Marriott www.residenceinn.com ...... 49 *Regional/demographic

10 Sept.13, 2010 informationweek.com

globalCIO BOB EVANS

Larry Ellison And Mark Hurd: The Job Interview

’know, Larry, you’re the only one I’d where IBM could make a compelling case to admit this to, but the stock price thing rip and replace, and then call in the sales Yalmost drove me nuts! Our revenue SWAT team to make the case, and then work it was higher, our growth rate was higher, our through for the customers. It’s been very suc- product line was bigger—heck, those sissies cessful—believe me, I know—so I’m gonna can’t even make PCs anymore—but I still take your advice and recommend we start the couldn’t get our stock price within spitting Cloud Transformation Business grou—” distance of IBM’s. At this point in my career, I “—I like this!—” try not to let emotion cloud my judgment, “—p that we can apply across various axes: A fly on the wall but I hate IBM.” private clouds, industry-specific solutions, “Well, well, imagine that—and the media SMBs with our channel partners, and even overhears the final like to portray me as Captain Ahab. I’ll ad- into middleware with things like the Integra- mit, Mark, that hate can be a useful asset, but tion Cloud.” stages of the chat if and only if it’s channeled properly. I think “That’s what I need to hear because your between Ellison and that when you were at HP, you let IBM mistake at HP, Mark, was that you at- B A L C get under your skin, when you O I tempted to trivialize IBM. It’s many L O Hurd,who becomes should have been making sure G things, but trivial certainly isn’t one you got under theirs.” of them. Your idea about a line of one of two presidents “Not really my style, I guess.” cloud products is good, particu- at Oracle “Can you make it your style? larly if you use it to leapfrog IBM’s Otherwise, this could be a short Migration Factory idea. And just so conversation.” you know, I don’t plan to go off on “C’mon, Larry, you wouldn’t even be any more of my cloud rants.” having this conversation with me if you did- “That’s good to hear, Larry—and I admire n’t think I fit the Oracle style. Because I had your self-restraint.” to spend a lot of my time at HP fixing things, “Your job will be like few others in the I didn’t have as much of a chance as I would world, and you can have a blast doing it, but have liked to play the marketplace predator, bear in mind that this is my company—not but trust me—I can be the most competitive ours, but mine. I’ll give you tons of autonomy, SOB you ever saw. and I expect you to challenge me whenever “And while I didn’t enjoy your critique of you feel you should. But when I make a deci- my strategy at HP with my ‘infrastructure sion, it’s final. Can you handle that?” company’ stuff, I see your larger point. Larry, “No question.” let me say, this is hard for me. I’m not used to “Excellent. So during my keynote at Ora- anybody telling me what to do or how to do cle OpenWorld on Sept. 19, how about we it. So I want you to know I’m trying, but if it do a duet?” were anybody but you talking to me like you “As long as you lead. See you then.” have, I’d tell that other person to KMA.” “I understand, Mark. Change is hard. But it Bob Evans is senior VP and director of is me. So go on.” InformationWeek’s Global CIO unit. For “Right. (Sigh.) So IBM’s had this Migration more Global CIO perspectives, check out Factory business for several years, and its sole informationweek.com/blog/globalcio, or write purpose is to identify competitive installations to Bob at [email protected].

12 Sept.13, 2010 informationweek.com

SecretCIO JOHN MCGREAVY

When The Finance Chief Flouts His Own Rules

on is our VP of finance. He joined our nancial scrutiny. Finance projects, however, midsize manufacturing company sev- are generally safe. Reral months ago, coming from a simi- Ron, Sam (our CEO), and I recently dis- lar position at a larger company in the insur- cussed one of the major finance projects un- ance industry. der way in our IT organization. We’re work- Our business doesn’t generally follow some ing with one of our key financial suppliers of the more rigorous processes that larger to build linkages between our systems, and companies embrace, and this has been a Ron is convinced that our supplier will re- challenge for Ron. One area of friction is our duce our fees once the new connections are All IT projects must process for justifying IT investments. While in place. I have my doubts. The design is we set an IT budget every year based upon highly customized, requiring many specific undergo a rigorous specific project assumptions, we leave a great rules programmed into the code. The an- deal of room for adjustment. I often approve nual maintenance costs may easily erode financial assessment, work that isn’t in the budget, if I think it’s the any savings from fee reductions, if they even says Ron,our new VP right thing to do. materialize. It wouldn’t surprise me if our Ron, a stern advocate of fully quantified fi- fees increase, as the supplier adds a “con- of finance—except nancial assessments for any investment, is venience charge” to cover its system imple- taking issue with our more flexible approach. mentation costs. those involving the I have no issue with ensuring that we put In our meeting with Sam, Ron was push- finance department more meat on some of the bones of our IT ing to expand the project’s scope, and I was projects, but the five-page Excel worksheet pushing back. I suggested to Ron that maybe model he prepared seems to intimidate all a business case would help us resolve the im- but the graduates of accounting programs. passe. His reply: “We can’t afford not to do Nonetheless, most of our company’s de- this. A business case won’t change that.” partments have adopted Ron’s model, at least Of course, I was tempted to point out in part because everyone likes to have the fi- Ron’s “do as I say, not as I do” mentality. But nance chief’s support when seeking to spend getting in the face of the new exec is rarely money. However, I’ve noticed that every IT an effective team-building strategy. Best to initiative that comes from the finance team take a positive attitude and see the bright doesn’t seem to require a business case. side: I do have a VP of finance who supports Should we assume that, if finance suggested IT projects—even if they’re mostly for the fi- it, the case must be so darned obvious as to nance department. not require a rigorous assessment? With three major IT-driven finance projects on the go, so far I’m batting zero: three A Tempting Target business cases requested, none received. I IT is one of the largest administrative costs need suggestions on how to get the cops to at our company, and it makes for a tempting abide by the law they established. target when Ron is looking to trim the budget. Sometimes, I have to creatively cam- The author, the real-life CIO of a billion- ouflage certain IT projects—hide them in the dollar-plus company, shares his experiences bushes. Sales, marketing, and manufacturing under the pseudonym John McGreavy. Got also have to dust off the PowerPoints from a story of your own to share? Contact time to time to withstand the additional fi- [email protected].

14 Sept.13, 2010 informationweek.com [QUICKTAKES]

COLLABORATION Salesforce’s Facebook Envy Goes Mobile

re companies ready for should customers choose? ASalesforce.com’s latest Each has its advantages and Facebook-meets-the-enter- disadvantages. Falcione prise thing, now that it’s tak- says the Mobile CRM appli- Hurd: Sworn ing its Chatter collaboration cation lets you drill into [to silence? platform to mobile devices? opportunities in greater The free smartphone app depth, but it doesn’t expose MARK HURD HIRING will bring CRM-centric, so- new comments and devel- cial-networking-style collab- opments the way Chatter HP Sues Oracle, Putting oration to iPhones, the iPad, Mobile does, unless you ac- and BlackBerry devices by tively search. Partnership In Question year’s end. A Google An- Chatter also lets people droid app is promised for add Twitter and Facebook asual observers are and field operations for both early next year. “Why can’t I feeds, which can be used to Cquite enjoying the spec- systems and software. collaborate when I’m in line track comments about the tacle of Hewlett-Packard Meantime, Charles Phillips at Starbucks or on the train company or clients—or to and Oracle brawling it out resigned his position as Ora- on my way to work?” says Al keep up with friends. Tight in public. If you’re a big cus- cle president. Safra Catz re- Falcione, Salesforce’s prod- security controls are meant to tomer of the two close part- mains a co-president. uct marketing director. keep internal Chatter feeds ners, not so much. Hurd left HP’s top job in “That’s how people expect to from becoming fodder on After Oracle last week August amid expense report work today.” Facebook or Twitter. But pro- hired former HP CEO Mark irregularities, after an inter- Chatter, which is free with ductivity-minded employers Hurd, HP sued, claiming he nal investigation cleared a Salesforce CRM subscrip- must question when work- is bound by confidentiality him of a sexual harassment tion, lets users subscribe to oriented collaboration crosses agreements that prohibit charge. At Oracle, Hurd and follow feeds related to the line into time-wasting him from working at Oracle. would be in line for an an- colleagues, sales opportuni- gossip and friend following. A nasty legal battle could nual salary of $950,000 and ties, top accounts, service Legit business collabora- impact a broad range of a bonus of $10 million. problems, reports, and tion alone could lead to info joint products, services, and HP and Oracle partner on more, just as they would a overload. Salesforce’s theme marketing operations. Ora- many fronts, including a Facebook friend. this year has been, “Why cle CEO Larry Ellison him- technology center where Or- One possible frustration can’t enterprise apps be self called the partnership acle database software is opti- for Salesforce customers is more like Facebook?” If into question, labeling HP’s mized for HP-UX servers. HP that Chatter Mobile is en- workers find themselves fol- suit “vindictive.” says it’s the leading Oracle ap- tirely separate from Sales- lowing too many leads, ser- “Oracle has long viewed plications infrastructure part- force’s existing mobile ap- vice problems, customers, HP as an important partner,” ner. It certifies Oracle’s So- plications. Its Mobile CRM and co-workers (not to men- Ellison said in a statement. laris, Enterprise Linux, and app offers access to calen- tion tweets and Facebook But with the lawsuit, “the HP VM on HP x86 systems. s

dars, to-do lists, alerts, friends), employers and em- board is making it virtually Joint customers include s e r P

mapping, and more. A free ployees just might ask, “Why impossible for Oracle and HP the state of Kentucky, for d e t a i c

Mobile Lite client supports can’t my enterprise app be to cooperate and work to- which Oracle and HP de- o s s A / viewing and editing of con- more like ... an enterprise gether in the IT marketplace.” ployed a new tax system last a m u k a

tacts and service records. app?” —Doug Henschen Ellison hired Hurd as year. —Paul McDougall S l u a

So which mobile app ([email protected]) president, overseeing sales ([email protected]) P

16 Sept.13, 2010 informationweek.com [QUICKTAKES]

RIM BUYS APPS VENDOR ‘USELESS’DATA Research In Motion has pur- chased the assets of DataViz, a developer of mobile productiv- Watchdogs Blast Fed IT Execution ity apps, and hired a majority of its employees.RIM already ublic advocacy groups Malamud pointed to the Malamud said. He proposed loads the company’s Docu- Plast week took the fed- National Archives and that the government spend ments To Go on many Black- eral government to task for Records Administration’s $250 million annually over Berry models.With the acquisi- failing to execute on Presi- Electronic Records Archives the next 10 years to convert tion, RIM’s forthcoming Black- Pad tablet can hit the market dent Obama’s Open Gov- system as a project that has reams of public documents with a strong set of Office-com- ernment Directive and for been poorly managed and into an electronic format. patible productivity apps. its continued mishandling over budget. The govern- Federal CIO Vivek Kun- of major IT projects. ment has spent $250 mil- dra, also speaking at the VMWARE NAMES PARTNERS At the Gov 2.0 Summit in lion on the system and proj- Gov 2.0 Summit, agreed VMware has named five partners through which it will offer Washington, co-produced ects it will cost $500 million that the feds must “democ- data center services, providing by O’Reilly Media and UBM vSphere 4-compatible environ- TechWeb, Sunlight Founda- ments and potentially a simpli- tion executive director Ellen fied way of moving ESX servers Miller described govern- into the cloud.Three of the companies—Verizon Business, ment spending data on the Terremark, and BlueLock—are USAspending.gov site as be- based in the U.S.The others are ing “almost entirely use- Colt, which operates data cen- less.” Using its own online ters in Europe, and Singtel, the tool, Clearspending.org, Singapore telephone company Sunlight Foundation con- cluded that nearly $1.4 tril- NOKIA’S NEW lion in annual federal PHONES spending was misreported Nokia’s N8 smart- by the government’s online phone,expected Malamud calls for a national later this month,will test databases. whether Nokia has caught up Miller was critical of a re- [scanning initiative to Apple and RIM in the critical design of the Data.gov high-end phone market.N8 will site—calling it a “mediocre” to finish. Malamud predicts ratize data faster.” One goal come with a 12-megapixel cam- data repository—and of Re- the total cost will be closer is to get more “third parties” era,HD video,social networking, and GPS.Nokia will unveil sev- covery.gov, which provides to $1 billion. involved in making govern- eral other models this month, data on Recovery Act spend- Malamud offered several ment data available to the including the Symbian-based ing. She called on the public proposals for improving Un- public in new ways, he said. E7,with a large touch screen. to be more active in moni- cle Sam’s IT performance. Kundra defended the toring the government’s He said the government Obama administration’s SYMANTEC DEDUPE PLAN Symantec has two new prod- transparency initiatives. should consider rebuilding progress in overhauling fed- ucts, Enterprise Vault 9.0 and Carl Malamud, president IT systems using open eral IT practices and per- the NetBackup 5000 appliance, of Public.Resource.org, said source software and avoid formance. He pointed to the aimed at helping companies that while the White House’s relying on “overdesigned Office of Management and store less data yet still find commitment to open gov- custom systems.” Budget’s decision to evaluate what they need.Enterprise Vault archives e-mails, files, and ernment is a good start, fed- Public.Resource puts gov- 30 financial system up- IMs for e-discovery.An add-on eral IT implementation is ernment information on the grades and 24 other major provides deduplication for fundamentally flawed. “Our Web. In keeping with that IT projects—worth a com- e-discovery search results, so an federal government spends mission, Malamud sug- bined $50 billion—as evi- attorney doesn’t have to see a $81.9 billion a year on IT,” gested a “national scanning dence of reform. sender’s outgoing message

Malamud said. “Much of initiative” as a way to move “We’ve halted” some proj- n o and the receiver’s identical s d i v e-mail.NetBackup 5000 is a that is a wasted effort. We paper records to the digital ects, Kundra said, and a D n a deduplication appliance. build systems so badly, it’s public domain. “turned around” others. c n u D

crippling the infrastructure “Prior efforts at digitiza- —Elizabeth Montalbano s e m a of government.” tion have been halfhearted,” ([email protected]) J

18 Sept.13, 2010 informationweek.com [QUICKTAKES]

VIRTUALIZATION Cisco Puts Firewall On Virtual Machines

o ease its Unified Com- tached to various VMs on a The gateway uses a zone VMs, Bugnion says. Tputing System users’ host server. The gateway is approach. Administrators The Virtual Security Gate- concerns about security in configured and policies ap- put a VM in a specific zone, way works with other parts virtualized environments, plied through VMware’s and that determines which of Cisco’s UCS to allow a Cisco has introduced the vCenter management con- other virtual machines it can heavier concentration of Virtual Security Gateway for sole, letting server, network, talk to. Zone membership is VMs per host server and Nexus 1000V, which ex- and security teams apply in- determined by the policies more secured environments. tends security more deeply depth security through a fa- that govern individual VMs. Cisco is making other im- into virtual infrastructures. miliar virtual environment A central security node in- provements to the Nexus Nexus 1000V is software interface, says Ed Bugnion, spects a request to connect 1000V and its NX-OS data that Cisco supplies as a sub- Cisco’s CTO and VP of between two VMs and deter- center network operating sys- stitute for the virtual switch server access. The gateway mines whether policies allow tem. As Intel and AMD en- inside VMware’s ESX hyper- was announced at VMworld the connection. If they do, hance the chips that run visor. It lets network con- last week. then enforcement of the poli- server motherboards, Bugnion nections to virtual machines If a virtual machine is mi- cies shifts off a central secu- says, VMware and Cisco soft- be set up with governing grated, while running, to rity node and back to the ware will increase the amount policies. another physical host, then Nexus 1000V virtual switch. of work those chips can do via The Virtual Security Gate- the firewall follows it to its The distributed responsibility a set of virtualized servers. way allows different sets of new location and applies the allows more efficient network —Charles Babcock firewall policies to be at- same policies, Bugnion says. communications among ([email protected])

FINANCIAL SYSTEM matically streamline and types of changes have been standardize its business the hardest in terms of get- Avoid These Pitfalls processes. ting everything to work,” But the change has posed he said. On Road To The Cloud numerous challenges. “We Many employees were really didn’t see ahead in unprepared for the changes epartment of Labor cycle for a major financial terms of requirements and because they doubted that DCFO James Taylor has system, it was longer than a how big the change would the agency could pull off advice for federal agencies— typical cloud deployment be,” Taylor said. What Labor the upgrade, given a $35 and anyone else—wanting because of the changes that didn’t do well was study million failure several years to move their financial sys- the system forced on the other use cases to see if ago and the three-month tems to the cloud: Do exten- agency’s business processes. other organizations had sim- delay, Taylor said. There- sive planning. In January, the agency shifted from a 20-year-old, “We really didn’t see ahead in terms poorly integrated on-prem- of requirements and how big the change ises system to a shared ser- —James Taylor, CFO of the Department of Labor vice managed by Global would be.” Computer Enterprises. Im- plementation took 18 The cloud means the La- ilar issues, to learn how they fore, at launch, the agency months, including a three- bor Department no longer tackled them, he added. had to set up training rooms month delay at the end of has to handle the operation One tough part was to show employees how to 2009, said Taylor, speaking and maintenance of its fi- changing how the depart- do things like process at the Gov 2.0 Summit in nancial system, and that ment handles the invoice vouchers and contracts. Washington, produced by adds up to long-term cost process. Instead of walking “We had a huge effort in O’Reilly Media and UBM savings, Taylor said. Using invoices across the depart- trying to catch up,” he said. TechWeb. While shorter the GCE service also is let- ment, the process is now —J. Nicholas Hoover than the typical deployment ting the department dra- entirely automated. “Those ([email protected])

20 Sept.13, 2010 informationweek.com [QUICKTAKES]

BIG DATA Oracle Focuses On Real-Time Data Integration racle’s new data integra- Gate technology is change Preference transform (ELT) approach. Otion product lineup data capture (CDC) for real- For New Integrations Conventional ETL handles all combines technologies from time updating. In contrast to three steps on data integra- 39% Custom code the acquisitions of Golden- batch-oriented techniques, directly into main system tion servers; ELT moves pro- Gate and Sunopsis. The result CDC monitors changes in cessing-intensive transforma- is products capable of inte- source-system data at the log 34% Server-based feed tion into the database, where (Oracle XML,MarkLogic,etc.) grating big data loads in het- level and instantly applies it’s done much more quickly. erogeneous environments changes to the target system. 12% Appliance By combining CDC and with real-time perform- Businesses with real-time in- 12% Cloud-based portal ELT approaches, companies ance—a combination information needs, such as can keep pace with high-vol- Other creasingly in demand. phone companies and online 4% ume operational workloads The two key products are retailers, use GoldenGate. Data:InformationWeek Analytics while also handling required survey of 281 business technol- Oracle GoldenGate 11g and But CDC technologies ogy professionals,April 2010 transformations in near real Oracle Data Integrator 11g. aren’t well suited to heavy- time. Oracle says data The products remain dis- duty data transformation is distinguished from conven- throughputs of more than 50 tinct, but this release involves steps such as aggregation. tional extract, transform, and GB per hour aren’t uncom- more than just a rebranding. That’s where Oracle Data In- load (ETL) tools in that it of- mon. —Doug Henschen The strength of Golden- tegration 11g comes in. ODI fers an extract, load, and ([email protected]) By Chris Murphy

he wiki has left the building. And the fact that it has says a whole lot about the new pressures business technology organizations are under. It’s not the cut, cut, cut mind-set of a year ago, according to our exhaustive InformationWeek 500 research. Budgets have loosened a bit as Tcompanies try to thrash their way out of a moribund economy. As they do, IT organizations are having to help employees interact in entirely new ways with the outside world, particularly with customers, who themselves are figuring out what kind of social networking they want to do. Which leads us back to those wikis. A year ago, just 42% of InformationWeek 500 companies used wikis, blogs, or social networking to reach out to customers, suppliers, and partners. This year, that figure shot up to 72%, in one of the most dramatic one-year moves we’ve ever seen in our InformationWeek 500 data. Back in 2008, only around one-third used wikis and blogs for external collaboration. So in just two years, this kind of collaboration outside the firewall has gone from the early adopter realm to darn near table stakes. Analytics is another screaming IT priority. Fifty-three percent of InformationWeek 500 companies cite deploying business intelligence tools as a key initiative that improved productivity, and 36% cite getting BI to more employees more quickly as a key 2010 innovation plan, the third-most-often cited priority. The best analytics work is happening when business units and IT teams blur, so that the work focuses on goals that move the sales or profit needle. At one hospital network, Group Health Cooperative of South Central Wisconsin, it was just this kind of effort—headed by the CIO— r e t t

E that led it to analyze its emergency room data to identify ER “frequent fliers.” It found that just n a y

R 92 patients rang up $2.2 million in costs by visiting the ER more than six times a year. Educat-

Inside the InformationWeek 500 Vanguard Group, the No.1 ranked company 30 | IHG, No.2 33 | Colgate-Palmolive, No.3 38 | 250 top innovators 41 Merck, No.4 50 | UPMC, No.5 56 | The entire InformationWeek 500 59 | 20 great ideas 71 Government innovators 78 | Research analysis 83 | See more online at informationweek.com/500 informationweek.com Sept.13, 2010 25 ing those patients on lower-cost op- 2010 Innovation Plans tions cut those costs 20%. Mobility might seem like an obvi- Make business processes more efficient ous innovation hot spot, what with 1 54% billion iPhone apps already down- Introduce new IT-led products or services for our customers loaded. But only 22% of Information- 40% Week 500 companies cite developing Get better business intelligence to more employees, faster mobile applications as a way they’ve 36% improved productivity this year (up Lower IT or business costs from 15% last year). We didn’t ask if 36% they’re doing mobile development for Improve Web operations or customer experience other goals—like reaching cus- 34% tomers—but the low level for inter- Improve customer service nal use suggests that mobile develop- 26% ment isn’t yet booming. Engage customers in new ways Drugmaker Merck’s three highly 24% practical iPhone apps show how mo- Data: 2010 InformationWeek 500 survey bility can change what companies do for customers. The apps, which Merck doesn’t even put its name on, let pa- quiring business technologists to look at outfits on the site, but those tients track varying symptoms and vi- thread between what’s possible and outfits really go viral only when girls tals. IChemoDiary, for example, lets pa- what works. In the area of collabora- post them to their Facebook pages. tients record side effects as they feel tion and social networking, home im- Then there’s Vanguard Group, the them, so that when they meet with a provement retailer McCoy’s built a mutual fund giant and this year’s No. 1 doctor they don’t have to think “How place on its Web site for independent company in the InformationWeek 500 long did the nausea last after the last contractors to post their profiles, and ranking, which is easing into social treatment?” The other two apps let peo- it took the gutsy step of letting them networking. It’s helping people who ple track migraine and diabetes stats. interact directly with McCoy’s cus- run company 401(k) plans interact tomers. Wet Seal, a retailer of cloth- with one another, through moderated IT Must Know The Customer ing for teenage girls, lets girls build online discussions. Individual in- Bringing in any new customer-fac- and rate outfits on its social network- vestors can interact on parts of the site. ing application is tricky, though, re- ing site. It learned that customers But because Vanguard’s mission is to get people to resist their quick-twitch tendencies and invest for the long Which Web Technologies Are Being Adopted By Your Company? haul, it’s being careful about where and how it unleashes “community.” 2010 2009 “It’s not like Amazon, where it’s a Software as a service no-brainer that you want to see what 75% the community is saying about the 61% PC before you buy it,” says Vanguard Wikis, blogs, or social networking tools for external collaboration CIO Paul Heller, who ran the com- 72% pany’s retail investor business before 42% becoming CIO. “... Candidly, the Cloud computing services community isn’t very good at invest- 50% 37% ing, as a whole. They’re buying at the height of markets, and they’re selling Consumer-oriented online applications employees find useful 27% when they’re panicked.” 25% The survey numbers tell us that companies, en masse, are pushing col- Data: 2010 InformationWeek 500 survey laboration beyond the firewall. But they don’t tell us how much. That’s

26 Sept.13, 2010 informationweek.com InformationWeek

where IT leadership takes over, balanc- How Have You Improved Productivity? ing new possibilities and higher expec- tations against what’s really going to Deployed new types of collaboration software drive growth and improve the busi- 59% ness. That balancing act is a central Deployed business intelligence tools theme to this year’s InformationWeek 53% 500, as companies embrace new Deployed unified communications 30% growth opportunities, don’t worry Increased support for telecommuting and remote workers quite as much about cost cutting, but 25% still fret about the uncertain economy. Deployed videoconferencing Some 40% of InformationWeek 500 23% companies expect to drive new IT-led Encouraged workers to use Web 2.0 technologies products or services as part of their 23% innovation plans. Consider Mansfield Deployed desktop virtualization infrastructure Oil, an oil and gas distribution com- 22% pany, whose IT organization has Developed mobile applications started selling a software-as-a-service 22% app to the company’s customers to Data: 2010 InformationWeek 500 survey help automate inventory tracking. “We could grow by grabbing market share from competitors,” CIO Doug spending this year to exceed last pattern it has in recent years—it’s Haugh says. “But is that the business year’s budget, up from just 37% ex- plateaued. Fifty-eight percent of Infor- we want to be in? No. We want to pecting an increase in 2009. And only mationWeek 500 companies do some open new revenue streams.” 20% expect their IT budget to de- form of IT outsourcing outside the U.S. Twenty-five percent of Information- crease, compared with 42% in 2009. (For more on outsourcing, see p. 83.) Week 500 CIOs have a formal respon- Still, this year doesn’t even return There is a slight uptick in the glob- sibility for innovation, in addition to to the optimism companies had in alization of IT, but it’s focused on em- their IT jobs. That’s up notably from 2008, when 62% thought their IT ployees, not outsourcing. Nearly half 16% a year ago. Twenty-seven per- budgets would increase. After the (49%) of InformationWeek 500 com- cent are officially responsible for busi- clobbering of 2009, a year marked by panies make global support and de- ness process improvement. budget cuts, layoffs, and pay freezes, velopment part of most IT staffers’ perhaps IT teams are feeling cautious. regular jobs, up from 42% a year ago. Budget Breathing Room Asked how they’ll innovate in 2010, Forty-four percent are integrating Without a doubt, the budget hatchet just 36% say by lowering costs, com- more IT workers into global business isn’t hanging over IT like it was in 2009. pared with 47% last year. That, too, processes, such as purchasing and More than half of InformationWeek points to breathing room on budgets. supply chains, up from 38% last year. 500 companies (57%) expect IT Offshore outsourcing follows the Yet IT’s global role looks to be mostly

How The InformationWeek 500 Are Selected

ow in its 22nd year,the InformationWeek 500 rec- dividual company data isn’t disclosed without permission. ognizes business technology teams that have The 2011 InformationWeek 500 application period opens made a demonstrable impact on the way their in January.You can pre-register at informationweek.com/500/ organizations do business. preregister.For more information,visit the Resource Center at NTo be ranked, companies with revenue of $250 million or informationweek.com/iw500. You can send questions to more must complete a rigorous application on their technol- [email protected]. ogy strategies. The process is quantitative and qualitative. The InformationWeek 500 Analytics report,which includes all Applications are reviewed by a panel of InformationWeek edi- the aggregated data from the survey,can be downloaded free, tors, who determine the final ranking.The data is aggregated for a limited time,at informationweek.com/analytics/2010/500. across all InformationWeek 500 companies and by industry;in- —Heather Vallis ([email protected])

Sept.13, 2010 27 InformationWeek

in support. Just 14% cite “pursue How Will Your 2010 IT Spending Compare With 2009? new global opportunities” among their 2010 innovation plans, nearly identical to last year’s findings. Less In terms of what companies are 20% spending on, desktop virtualization is one emerging technology that looks to be getting some pickup—22% of More companies have deployed it, up from 57% 13% a year ago. Same 23%

What’s Not A Priority What’s dead in terms of priorities— or at least on life support? Green IT, for starters. How else to explain the paltry 5% who cite a Data: 2010 InformationWeek 500 survey more “eco-friendly IT environment” as a top 2010 innovation effort. Not view—something about holding $1.4 search engine marketing experience, that green IT’s ever been a chart top- trillion in other people’s assets, and and connect with that person. That per—last year 8% cited it. Companies the associated personal information, consumer-to-business dynamic helps aren’t opposed to green IT. In fact, makes the company consider security explain why 59% of IW 500 compa- companies talk a great “sustainability” among the two or three areas where it nies have deployed new collaboration game. It’s just that IT teams tend to wants to be leading edge. One of the software in the past 12 months to im- come at green IT through the cost- latest innovations it’s piloting is voice prove productivity. Real estate com- cutting door. They’re consolidating biometrics, using a comparison to a pany CenterPoint, for instance, created data centers to avoid building a new customer’s recorded voice to replace a an add-in to make Microsoft Outlook one, to buy fewer servers, and to use signature guarantee for some transac- the access point for all employee apps, less power. Turns out, that’s all pretty tions, such as a name change. from e-mail to ERP to CRM. eco-friendly, even if it’s not the goal. So have companies taken the reins Information security, once a Those Pesky Employees off employees, trusting them to head hotbed of business technology inno- The customer is always right. But onto Facebook and Twitter and Google vation, has cooled off. Not that it’s lately, employees are getting mighty collaboration apps if that’s what they less important—not by any stretch. demanding as well. need to do their jobs? Not even close. But in the innovation essays of IW The pressure is on IT teams to de- Only 27% of IW 500 companies en- 500 companies, very few wrote about liver collaboration, mobility, and infor- courage employees to use consumer- their security initiatives, a notable mation to employees that’s as power- oriented apps they find useful. shift from a few years ago. Perhaps ful as what they have in their off-duty This tension is everyday life for In- that’s a sign that IT thinks it’s getting lives. So if Facebook lets you know formationWeek 500 IT leaders, as they information security under control where your 8th grade locker buddy try to let employees be more open and and not reacting to every vulnerabil- now works (whether you care or not), collaborative than ever with customers ity and bug. you expect to be able to search your and colleagues, while staying secure Vanguard, though, doesn’t take that colleagues’ profiles for someone with and compliant and within budget. But the best IT teams don’t let their ambi- tions be hamstrung, be it by tradition, Find more at informationweek.com/500 or fear, or even budgets. They’re driving for growth, and actively making Learn about all 21 of the InformationWeek 500 industries : the case for new ways that IT can spur : View interviews with CIOs of the top InformationWeek 500 companies revenue and boost profits. : Download our 2010 InformationWeek 500 Analytics Report Chris Murphy ([email protected]) : Apply for next year’s InformationWeek 500 is editor of InformationWeek.

28 Sept.13, 2010 informationweek.com

THE VANGUARD GROUP

Vanguard’s Innovation Plan

CIO Heller wants IT [ with “wow”and relevance

ow do you get to unit could justify building an iPhone projects will pay off for the business. work on the most in- app based on short-term ROI. While Vanguard has more-formal channels teresting tech proj- smartphones are commonplace, the for funding innovative IT projects ects at Vanguard, the number of people using the new app that can pay their way. The volunteer mutual fund giant? in a week is less than the number us- effort tackles projects whose benefits HYou volunteer. ing the Web site in an hour. So a vol- likely are further out. Like most companies, Vanguard has unteer team created a first version, CIO Heller doesn’t hold the iPhone wrestled with how to make innovation which the retail investor division got up as a mind-blowing innovation— a part of its everyday culture, without without spending any of its budget. hundreds of thousands of iPhone chasing every gee-whiz idea people “The first release was kind of on the apps were out when Vanguard came come up with. Under CIO Paul Heller, house,” says Jeff Dowds, who leads IT out with its own. But very few were volunteering has become one key systems for the retail group and cham- in financial services, and Vanguard piece of its innovation strategy. It’s not pioned the mobile project. customers weren’t clamoring for a Google-like program, where engi- For employees, the volunteer plan them. Vanguard wants to have mobile neers can set aside 20% of their time lets them work on something they’re development skills and experience to pursue new ideas. Vanguard volun- passionate about, with the blessing well ahead of customer demand, and teers keep all their day-job responsi- and support of their bosses, and get well before an operating group can bilities and log extra hours to work on credit for it if it works. For Vanguard, make a business case for such apps. more cutting-edge projects. it also serves as an informal vetting “It’s applied R&D,” Heller says. “We The strategy has several advantages. mechanism—almost like a startup can look two, three years out and say, One is keeping the cost down to pur- trying to raise venture capital. People ‘Rich Internet apps are going to hap- sue prototype-stage ideas. An example are betting their time and reputations pen. We already see it on The New is Vanguard’s first iPhone app, which it on volunteer projects, something York Times or Amazon.com. Don’t we launched last year. No single business they’ll risk only if they think those want to do it?’ We want to pave the

30 Sept.13, 2010 informationweek.com InformationWeek

way on the technology, so the first Then in the early 1990s, Vanguard sites. (DiStefano died unexpectedly at businessperson up who wants to do a CEO John Bogle, the company’s the age of 52, in 2002.) rich Internet app doesn’t have to fig- founder and a legend in the mutual Vanguard doesn’t have branches, re- ure it out on their project.” fund industry, gave a speech challeng- lying on the Web, phone, and mail to Vanguard has tried other approaches ing employees to question the com- interact with customers. In 2000, Van- to IT innovation. For decades, it was a pany’s sacred cows—including its tech guard had about $500 billion in assets fast follower. Then it created a formal fast-follower principle. Bogle put the and 12,000 employees. Today, it man- innovation lab, with marching orders company on the path to embrace the ages $1.4 trillion in assets—and still to spot the latest emerging tech that latest IT to power its low-cost strategy. has only about 12,000 employees. could give an edge to the company. But As Vanguard became an IT leader Thanks to the Web, it takes only that work was too far removed from and innovator, Bogle’s successor as 25,000 to 35,000 phone calls a day, current business needs, Heller says. CEO, John Brennan, set the expecta- instead of the 100,000 it did in 2000. Now Vanguard has just a five-per- tion that IT was inseparable from “the But it has about 400,000 logons. son IT innovation group. Its job is to business.” He made clear that business Yet neither McNabb nor Heller was organize those ad hoc volunteer unit leaders couldn’t fob off IT fail- convinced Vanguard was doing teams around a project and coach ure—they were responsible for getting enough to stay ahead of emerging tech. them through techniques such as ag- the needed technology. “Gately gets “Disruptive technologies often mani- ile software development sprints. But fired” became something of a catch- fest themselves first in a small way— the ad hoc teams do the work. phrase among the executive team, after and then they explode,” McNabb says. “This isn’t innovation as in ‘Let’s be Brennan explained that if, just as an The CEO’s answer is to set aside cool to show stuff off to our external example, the institutional investor some budget for disruptive tech proj- clients,’ like doing retina scans,” group couldn’t deliver because of an IT ects—the kind no one business unit Heller says. “We try to be really con- shortcoming, it was the head of that can fund but that might make sense nected to our business and clients.” unit, Jim Gately, who’d be held ac- for everyone in the near future. For ex- Keeping IT in touch with business countable. (Gately had a long and suc- ample, he allocated a couple of million needs is easier at Vanguard than at a lot cessful Vanguard career. Now retired, dollars for an internal collaboration site of other companies, since it regularly he serves on the Vanguard Charitable that faced a tough battle in Vanguard’s moves people in and out of IT. Heller Endowment board, with Brennan.) formal technology review group. held multiple business positions, then And then there was CIO Bob Di- McNabb says Brennan did the same worked a multiyear stint as an IT man- Stefano, whom Vanguard leaders thing back when “no one could really ager, then led key business operations, credit with bringing the company into put an ROI on the Web that mattered.” and has been CIO since 2006. Tim the Internet age, providing what cur- Heller’s answer, after some experi- Buckley started in a business unit, rent CEO McNabb calls “tech enlight- menting, has been the volunteering helped shape Vanguard’s early Web strategy, became CIO, and now leads “Disruptive technologies the company’s retail division. But until the volunteer effort was often manifest themselves launched, something was missing. “We first in a small way—and then had a little bit of a lull on the innovation side,” Vanguard CEO Bill McNabb they explode.” —CEO Bill McNabb says. McNabb says he and Heller talk about always having some IT in the enment training.” DiStefano brought concept paired with the small innova- works that has a “wow” factor. in Internet pioneers and futurists to tion team that organizes ad hoc efforts, preach the Web gospel, and he helped which Vanguard calls “Dig” teams— Vanguard’s IT Evolution “shape a generation” of leaders’ think- for Distributed Innovation Group. Vanguard didn’t always think tech- ing about IT, McNabb says. He Among the innovation group’s key nology leadership was important. In pounded home the idea that investors operating practices is that each Dig fact, not being a tech leader was one would judge Vanguard.com based on team needs a sponsor—a key man- of its core principles, part of its phi- their experiences on leading Web sites ager to vouch for the project’s busi- losophy of being a low-cost provider. like Amazon’s, not other financial ness value and be something of a

Sept.13, 2010 31 InformationWeek

“spiritual leader” for the effort. Another is that every Dig project is different, depending on the goal and the people involved, so the organizers must be flexible. Usually, about 15 to 20 people answer a call for volunteers, and about 10 do the bulk of the work. And this volunteer team won’t take its project to full- scale implementation. “There’s always an end state of when the innovation team will turn it over to IT for full support,” CTO Carol Dow says. In addition to the ad hoc work, each of the innovation team members also is assigned one key area to research for opportunities: app dev, mobile, CRM, flexible infrastructure, security, marketing, contact center, Web 2.0, and enterprise 2.0.

What’s Ahead Vanguard’s IT teams have a lot of innovation in the pipeline. One area is internal collaboration. The IT organization has been using what it calls the IT hub, SharePoint-based sites for informal collaboration. Rob Lake, who leads the five-person innovation group, says the challenges include meeting regulations such as record retention, but also getting the tools adopted. For that, he isn’t wasting time trying to convince anyone they need a collaboration tool. Instead, he’s looking around Vanguard to “find passionate communities where they’re struggling to collaborate,” Lake says. “Find the collaborative groups that need tools.” Social media is another looming challenge. While its Web site is a huge success, “the one gap we have found is the personality, the culture of Vanguard is really hard to come through on Vanguard.com,” says Amy Dobra, who leads the social media effort. Yet Van- guard’s wrestling with how to meet demand for quick, personable interaction within the strict regulatory environment financial companies face. In mobility, it has a Dig team working on a “build once” mobile strategy, so it doesn’t have to build apps for every platform from iPhone to Android to Black- Berry. It’s building a prototype for a rich, interactive mobile Web site. And it’s experimenting with a mobile Web site in what’s essentially a mobile app container, with minimal programming for each specific platform. But the retail group’s Dowds thinks they face another five years of developing for multiple platforms. For now, Vanguard thinks it has the right formula and practices for taking on these emerging technologies. But count on this: If this system doesn’t deliver the tech the company needs, Vanguard will again be ready to evolve its IT innovation strategy. —Chris Murphy ([email protected])

informationweek.com

InformationWeek INTERCONTINENTAL HOTELS GROUP

Search, Mobility, BI Keys To Hotel Chain’s Growth

ll that Tom Conophy ness intelligence. A Teradata database, needs to do to show off 25 TB and growing, holds 200 million the IT innovations of guest profiles, including detailed infor- InterContinental Hotels mation on 43 million loyalty plan Group is to take visitors members. Every time a customer Anext door. Beside the company’s U.S. books a room, checks into a hotel, headquarters in Atlanta is one of watches a movie, or uses the minibar, IHG’s Crowne Plaza properties, the database gets updated, and IHG which serves as a technology test uses that data to, among other things, bed. The hotel’s lobby has an airline run targeted marketing campaigns, flight board similar to those in air- look at what rate plans have the high- ports, as well as touch-screen PCs est uptake, analyze leisure and busi- that let guests do everything from ness trends, and even slice and dice check flights to search for nearby Hotel guests trends by, say, the company for which a restaurants. Business travelers can subset of guests work. Other dash- take advantage of a smart whiteboard “want powerful boards track IHG’s performance on Ex- in the hotel’s conference area. pedia and other third-party travel sites. Conophy, IHG’s CIO, encourages IT computing in their staffers at the company to experiment hands, and for it Souped-Up Search with new technologies because, he A reflection of the company’s grow- says, “I don’t know where the next big to be intuitive ing business, IHG’s reservation sys- innovation is.” IHG’s IT lab, with an and rapid.” tem now gets about 30 million avail- open floor plan and free soft drinks, ability requests a day. To support the resembles what you might find in Sili- —CIO Tom Conophy workload, the company developed its con Valley. “As long as they don’t burn own patent-pending search technol- down a hotel or electrocute a guest, ogy, the Bottom-Up Optimum Search those are the only two rules that really Revenue per available room—a key Strategy. BOSS, as it’s called, is a Java apply,” Conophy jokes. “We don’t industry metric—is on the upswing application that runs on an Oracle want to curtail their thinking.” again after declining during the global RAC database. It uses complex algo- IHG, which owns seven hotel recession. rithms and business rules to optimize chains, including Crowne Plaza, Hol- Conophy talks about making hotel requests and queries, and caching iday Inn, and InterContinental Ho- guests “the center of our universe,” and technology to speed up responses. tels, opened 439 hotels around the customer loyalty is vital to growth in When processing a query, BOSS world last year, with plans for another the hospitality industry. To keep guests gathers a swath of information on rel- 1,302 hotels and 197,431 rooms. coming back, IHG is investing in busi- evant hotels, allowing for filters to be

informationweek.com Sept.13, 2010 33 InformationWeek INTERCONTINENTAL HOTELS GROUP

applied to the data. For example, a iPads at InterContinental hotels to get age. IHG partnered with IBM to pro- rewards club member could search concierge staff out from behind their vide that IT as a service. “Hotels were for a hotel in Atlanta in May for one desks and engage guests. asking us what to do, but it was hard to three nights, and the system would Going forward, guests will be able to do this for as many as two new ho- do one call to the back-end system to use their smartphones to check in tels opening each day,” says Gustaaf that would return appropriate and even unlock their rooms. Con- matches. The same request in an- cierges will be able to push sightsee- other hotel operator’s system might ing itineraries to guests’ mobile de- IHG By The Numbers require multiple searches and hun- vices, and guests will be able to $772 million in revenue dreds of database calls. transmit their preferences from their for the first half of 2010, and The most robust BOSS usage is cur- devices to the hotel before they $8.9 billion with all franchises rently limited to IHG employees, check in, under a concept IHG calls though the system has been integrated “Virtually Me.” $200 million IT budget; with Google, so the company can pub- That future is fast approaching. 800-person IT organization lish ads to the Web that show its low- Testing of a mobile door-unlocking 4,503 hotels and 656,661 est room rate in a given market when capability provided by startup Open- rooms in operation someone searches for a hotel. “Search Ways came out of IHG’s lab and went is the killer app for us,” Conophy says, into Holiday Inns in Houston and 1,302 hotels with 197,431 adding that when BOSS is made avail- Chicago in mid-August. With that rooms under development able to the public on IHG’s Web site technology, the hotel gives a guest a 132 hotels in operation in and on travel sites, it will include GPS special number to punch in from her China, with another 148 hotels support and voice search. By the end cell phone, which then emits a spe- under development of this year, 30% of all IHG hotel cial sound that unlocks the door room searches will be moved to BOSS, when the phone is placed against a re- $1 billion relaunch of Holiday Inn brand under way and 100% by the end of next year. ceiver attached to the door lock. Says Conophy: “We want to endear our Untethered Concierge brands to guests so they come back, Schrils, IHG’s VP of global technol- Mobility is another area of empha- and in doing so you’ve got to have ogy for the Americas. The hotel-in-a- sis. The company receives about $2.5 technologies supporting their stay.” box costs are 5% to 10% lower for million a month from mobile book- hotel operators than a do-it-yourself ings—a 400% increase over last year. Hotel In A Box approach, Schrils says. IHG’s iPhone app is the most down- IHG’s 800-person IT organization In another effort to cut costs (and loaded in the hotel industry, and the works mostly from the Atlanta head- its carbon footprint), IHG last year company recently added an Android quarters, while IT personnel in fran- launched Green Engage, a Web-based app. “We expect our mobile business chise locations—which account for pilot system developed with Harvard to grow exponentially,” Conophy 95% of the company’s U.S. hotels— University. Under the program, hotel says. “People want powerful comput- comprise a larger matrixed organiza- operators record monthly utilities using in their hands, and for it to be in- tion. IHG spends a bit more than age, among other data, and the system tuitive and rapid.” $200 million annually on IT, or tells them whether their properties are Experimentation is the name of the about 1.2% of revenue, less than efficient based on city, state, and occu- game in the mobile world, says competitors Hilton, Starwood, and pancy norms, and then it makes rec- Bryson Koehler, IHG’s senior VP of Marriott. Franchise properties aren’t ommendations—for example, where revenue and guest technology. “I required to use IHG platforms, but to install LED lighting. As a next step, couldn’t tell you exactly what our fo- they typically use its reservations and the company will gather energy data cus is going to be because it’s chang- property management systems. using technology such as water flow ing so rapidly,” he says, comparing IHG makes it easier for franchisees readers. Conophy estimates Green En- mobility to the Internet of the 1990s. to adopt corporate-recommended gage could save IHG hotel operators In fact, mobility increasingly fac- tech via its “hotel in a box”—every- as much as $400 million annually. tors into guests’ in-hotel experiences. thing from hosted PBXs and servers —J. Nicholas Hoover IHG recently began testing Apple to point-of-sale systems in one pack- ([email protected])

34 Sept.13, 2010 informationweek.com

COLGATE-PALMOLIVE

Data Drives Colgate Investment Decisions

onsistency. It’s what con- success of commercial investment. To sumers expect from develop a uniform methodology, the everyday products such company began by holding work- as toothpaste and soap, shops around the globe to understand and it’s what consumer the processes and characteristics of a Cpackaged goods company Colgate- range of subsidiaries—some large and Palmolive strives for in everything it some small, some in mature markets does, from manufacturing to finan- and some in developing countries. A cial performance. proof-of-concept delivered in 2006 Consistency also is the foundation provided a foundation for promotion- of Colgate Business Planning, a busi- planning procedures, as well as profit- ness-IT initiative that has enabled the and-loss and ROI measures. company to shift more than $100 mil- The CBP process starts with top- lion toward more profitable growth down, 18-month brand and retail areas. CBP is about ensuring a consis- Colgate gets plans from corporate. Key account tent process and supporting technol- “a demand signal managers then build detailed, bot- ogy for commercial investments: the tom-up plans to meet the overall funds are allocated for everything that is based on goals for big retailers and customer from rebates for retailers to promo- approved plans, groupings. As investments are made, tional campaigns, special discounts, post-promotion evaluations measure and logistics programs. not salespeople’s the cost, uplift, and profitability of Many consumer goods companies each campaign by customer. measure commercial investment in aspirations.” Account managers can adjust their terms of “uplift”—the difference be- —CIO Tom Greene plans as they discover what’s work- tween what they actually sold and ing for particular salespeople, brands, what they would have sold had they products, retailers, and regions. Sales not run a particular campaign. Colgate shelves without careful planning and forecast accuracy also is measured wanted deeper insight, with profit, execution in cooperation with major against actual orders and shipments. loss, and ROI analysis down to indi- drugstores, supermarket chains, and “Plans are fed into our supply chain vidual products, brands, and cus- mass merchants. Promotional plans systems, so they get a demand signal tomers (meaning major retailers). and execution have to be responsive that is based on approved plans, not Colgate is known for iconic brands to both the competition and ever- salespeople’s aspirations,” Colgate- such as Colgate toothpaste, Irish changing economic conditions. Palmolive CIO Tom Greene says. Spring soap, Ajax cleanser, and Palm- Until the CBP project got under olive dishwashing liquid. Brand way five years ago, Colgate’s more Investing Wisely recognition certainly helps sell those than 100 global subsidiaries took dif- The CBP process depends heavily goods, but products don’t fly off the ferent approaches to measuring the on technology, and here, too, Colgate

38 Sept.13, 2010 informationweek.com InformationWeek

relies on consistency: The company’s the company’s commercial investment have made it easier to accelerate the overall IT strategy is centered on us- spending. ROI analysis by customer ongoing subsidiary-level rollouts and ing SAP software wherever it can. The makes it clear which types of promo- get CBP insight into the hands of empower of using a single application tions are driving profitable growth ployees. A dedicated team of six mar- vendor is that everything is integrated, and which aren’t, with insight down keting and supply chain executives re- Greene says. “With nonintegrated sys- to specific products. So, Colgate has views the use of the CBP process and tems, accuracy and consistency de- been able to reinvest $100 million counsels subsidiary-level managers. pend on the systems in which data into more profitable promotions. Dedicated IT teams also support the happens to reside,” he says. “With Colgate has learned many lessons process, so any difficulties integrating SAP, the product masters and the cus- about the profitability and perform- required data or adapting to new in- tomer groupings are all driven by the ance of various commercial invest- terfaces can be resolved quickly. same master data.” As a result, he says, ments. Greene declined to give away From the very beginning, Colgate you don’t have 12 different people of- what he called “trade secrets,” but it’s avoided a cookie-cutter approach. The fering up 12 different “versions of the easy to guess that changes to coupon core process is immutable, but sub- truth” during meetings. levels and in-store displays or adjust- sidiaries can tweak 20% to 30% of the SAP has been involved in all ments to discount thresholds, re- approach to match local market char- phases of the CBP project. When the bates, and logistics allowances might acteristics. As an example, some sub- process was first rolled out in be involved. sidiaries might have 100 or more key Canada and Mexico in 2006, it was The long-term goal is $300 million customers whereas others might have built on SAP promotion planning in savings that could be reinvested or just four taking up 80% of commer- and sales and distribution function- dropped to the bottom line. That cial investment. Units with a few large COLGATE’S CBP TIMELINE Proof of concept with standard SAP promotion-planning capabilities.First Productivity improvements production version,including basic ROI support broad editing and copying and account-level P&L analysis,rolled of promotion plans; buying- out in Canada and Mexico. pattern analyses introduced. Subsidiary rollouts continue. LLL2007 2009 2006 MM2008 2010 Subsidiary rollouts begin with Performance and usability more advanced ROI and enhanced with SAP package-planning analysis. BusinessObjects dashboards and SAP CRM 7.0 user interfaces. Data:Colgate-Palmolive ality. Now deployed in 17 Colgate leaves a ways to go, but with the lat- customers can develop deeper levels subsidiaries worldwide, CBP has est BI and CRM improvements, Col- of promotional planning and analysis. been steadily enhanced, most re- gate has next-day analytic visibility Greene says he’s gained a lot of cently (in 2009) with SAP Business- into performance bright spots and valuable insight through his early Objects dashboarding and what-if shortfalls. involvement in the CBP project. planning capabilities and SAP CRM “Every morning, every senior exec- “You have to understand the tech- 7.0 user interface improvements. utive can see what happened [with nology, but the most important “Early on, the maturity of the CRM net sales] globally, and they can track thing to a CIO’s success is to under- product wasn’t quite what we how we’re doing against our monthly stand the business so you can marry needed it to be, but we worked with plan,” Greene says. “We know which the two together,” he says. SAP to evolve it into a robust com- subsidiaries are hitting their goals, The margin-driving, technology- mercial planning tool,” Greene says. and we can also look at market-share supported CBP process is just the The CBP process is now used by changes based on Nielsen data.” sort of pairing he’s talking about. more than 1,000 customer planning Colgate’s deployment experience —Doug Henschen groups accounting for about 60% of and the latest BI and CRM upgrades ([email protected])

Sept.13, 2010 39 RANK COMPANY REVENUE IN MILLIONS HIGHEST-RANKING IT EXECUTIVE INDUSTRY 201 Austin Energy $1,060 Karl Popham Energy & Utilities www.austinenergy.com Austin,Texas CIO (Interim) 202 Synopsys Inc. $1,360 Debra Martucci Information Technology www.synopsys.com Mountain View, Calif. CIO & VP of IT InformationWeek 500 203 Avnet Inc. $16,230 Steve Phillips Distribution www.avnet.com Phoenix, Ariz. Sr.VP & CIO 204 Northern Trust Corp. $3,787 Peter Magrini/Jim Scholefield . Banking & Financial Services www.northerntrust.com Chicago, Ill. Exec.VP,Tech Apps./Sr.VP, Tech.Infra.& Ops. 205 National Oilwell Varco Distribution Services $1,350 Noel Connolly Manufacturing www.nov.com Houston,Texas Sr.VP of Supply Chain Management 206 Southern California Edison $12,400 Mahvash Yazdi Energy & Utilities www.sce.com Rosemead, Calif. Sr.VP Business Integration & CIO 207 Flextronics International Ltd. $24,111 David Smoley Electronics www.flextronics.com San Jose, Calif. Sr.VP & CIO 208 CUNA Mutual Group $2,764 Rick Roy Banking & Financial Services www.cunamutual.com Madison,Wis. Sr.VP & CIO 209 Blackbaud Inc. $309 Todd Lant Information Technology www.blackbaud.com Charleston, S.C. VP of IT 210 InnerWorkings Inc. $400 Neil P.Graver Consulting & Business Services www.inwk.com Chicago, Ill. Sr.VP of Technology 211 The Charmer Sunbelt Group $4,800 Paul Fipps Distribution www.charmer-sunbelt.com New York, N.Y. Corp.VP of Business Services & CIO 212 Siemens Healthcare $16,085 John Glaser Healthcare & Medical www.medical.siemens.com/us Malvern, Pa. CEO 213 HCA Inc. — Noel Brown Williams Healthcare & Medical www.hcahealthcare.com Nashville,Tenn. Sr.VP & CIO 214 Principal Financial Group Inc. $8,849 Gary Scholten Banking & Financial Services www.principal.com Des Moines, Iowa Sr.VP & CIO 215 Progressive Medical Inc. $280 Angelo Mazzocco Healthcare & Medical www.progressive-medical.com Westerville, Ohio CIO 216 SunGard Availability Services LP $1,520 Donald H. Hopkins Information Technology www.sungardas.com Wayne, Pa. VP & CIO 217 Hologic Inc. $1,637 David Rudzinsky Healthcare & Medical www.hologic.com Bedford, Mass. Sr.VP of IS & CIO 218 Nygard International Partnership $500 Len Nicolas Consumer Goods www.nygard.com New York, N.Y. COO 219 Veyance Technologies Inc. $1,600 Nathaniel Leonard Manufacturing www.veyance.com Fairlawn, Ohio VP & GM of IT,Logistics,Procurement & Seawing 220 The New York Times Co. $2,440 Joseph Seibert Media & Entertainment www.nytco.com New York, N.Y. Sr.VP & CIO 221 CRST International Inc. — Steve Hannah Logistics & Transportation www.crst.com Cedar Rapids, Iowa VP & CIO 222 Newell Rubbermaid Inc. $5,578 Gordon Steele Consumer Goods www.newellrubbermaid.com Atlanta, Ga. Sr.VP Program Management Office & CIO 223 FFE Transportation Inc. $373 Nick Cook Logistics & Transportation www.ffeinc.com Dallas,Texas VP & CIO 224 Poudre Valley Health System $1,000 Russell Branzell Healthcare & Medical www.pvhs.org Fort Collins, Colo. VP & CIO 225 Rackspace Hosting Inc. $629 Steve Mills Consulting & Business Services www.rackspace.com San Antonio,Texas CIO 226 Doshi Diagnostic Imaging Services — Tariq Rahim Shaikh/Anish Berry Healthcare & Medical www.doshidiagnostic.com Hicksville, N.Y. COO & CIO/President 227 Transatlantic Holdings Inc. $4,446 George Di Martino Insurance www.transre.com New York, N.Y. Sr.VP & CIO 228 Global Crossing Ltd. $2,536 Anthony D. Christie Telecommunications www.globalcrossing.com Florham Park, N.J. CTO & CIO 229 Financial Industry Regulatory Authority Inc. — Marty Colburn Consulting & Business Services www.finra.org Wash., D.C. Exec.VP & CTO 230 Fiserv Inc. $4,077 Maryann Goebel Banking & Financial Services www.fiserv.com Brookfield,Wis. Exec.VP & CIO 231 Schneider National Inc. — Judith Lemke Logistics & Transportation www.schneider.com Green Bay,Wis. Exec.VP & CIO 232 K&L Gates LLP $1,000 Steven W. Agnoli Consulting & Business Services www.klgates.com Pittsburgh, Pa. CIO 233 Martin Marietta Materials Inc. $1,703 Chuck Musciano Metals & Natural Resources www.martinmarietta.com Raleigh, N.C. VP & CIO 234 Microsoft Corp. $58,437 Tony Scott Information Technology www.microsoft.com Redmond,Wash. Corp.VP & CIO 235 Littelfuse Inc. $430 Ed Earl Electronics www.littelfuse.com Chicago, Ill. CIO 236 Orbital Sciences Corp. $1,100 Ken Bell Manufacturing www.orbital.com Dulles,Va. Sr.VP & CIO 237 ZSL Inc. — Shivakumar Kandaswamy Consulting & Business Services www.zslinc.com Edison, N.J. Exec.VP of IT and R&D 238 OhioHealth — Michael Krouse Healthcare & Medical www.ohiohealth.com Columbus, Ohio System VP & CIO 239 Grange Mutual Casualty Co. $1,300 Michael C. Fergang Insurance www.grangeinsurance.com Columbus, Ohio VP & CIO 240 Emcor Group Inc. $5,548 Joseph A. Puglisi Construction & Engineering www.emcorgroup.com Norwalk, Conn. VP & CIO 241 Freescale Semiconductor Inc. $3,508 Sam Coursen Electronics www.freescale.com Austin,Texas VP & CIO 242 PLS Logistics Services — Mark Ohlund Logistics & Transportation www.plslogistics.com Cranberry , Pa. VP of Technology Strategy 243 Geisinger Health System $2,300 Frank Richards Healthcare & Medical www.geisinger.org Danville, Pa. CIO 244 Steris Corp. $1,299 Mario Shahidian Healthcare & Medical www.steris.com Mentor, Ohio VP & CIO 245 Boeing Co. $68,281 John Hinshaw Manufacturing www.boeing.com Chicago, Ill. VP of IT & CIO 246 EMC Corp. $14,026 Sanjay Mirchandani Information Technology www.emc.com Hopkinton, Mass. Sr.VP & CIO 247 BMC Software Inc. $1,872 Mark Settle Information Technology I NFORMATIONW EEK’ S 22ND A NNUAL R ANKING www.bmc.com Houston,Texas CIO 248 Medtronic Inc. $14,599 Michael Hedges Healthcare & Medical F HE EADING SERS F USINESS ECHNOLOGY www.medtronic.com Minneapolis, Minn. CIO O T L U.S. U O B T 249 Blackboard Inc. $439 John Lambeth Information Technology www.blackboard.com Wash., D.C. VP,Technology Solutions Group 250 OneAmerica Financial Partners Inc. $1,217 Gene Berry Banking & Financial Services www.oneamerica.com Indianapolis, Ind. VP of IT & CIO Turn page, open flaps to see the list

48 Sept.13, 2010 informationweek.com informationweek.com Sept.13, 2010 41

RANK COMPANY REVENUE IN MILLIONS HIGHEST-RANKING IT EXECUTIVE INDUSTRY RANK COMPANY REVENUE IN MILLIONS HIGHEST-RANKING IT EXECUTIVE INDUSTRY RANK COMPANY REVENUE IN MILLIONS HIGHEST-RANKING IT EXECUTIVE INDUSTRY RANK COMPANY REVENUE IN MILLIONS HIGHEST-RANKING IT EXECUTIVE INDUSTRY

1 The Vanguard Group Inc. $2,300 Paul Heller Banking & Financial Services 51 E.&J. Gallo Winery $2,000 Kent Kushar Consumer Goods 101 JetBlue Airways Corp. $3,286 Joseph Eng Logistics & Transportation 151 Convergys Corp. $2,827 Jim Goetz Consulting & Business Services www.vanguard.com Malvern, Pa. Managing Dir.& CIO www.gallo.com Modesto, Calif. VP & CIO www.jetblue.com Forest Hills, N.Y. Exec.VP & CIO www.convergys.com Cincinnati, Ohio CIO 2 InterContinental Hotels Group (IHG) $1,680 Tom Conophy Hospitality & Travel 52 Group Health Cooperative of South Central Wisconsin $254 Galen M. Metz Insurance 102 Wet Seal Inc. $561 Jon Kubo Retail: General Merchandising 152 Sutherland Global Services Inc. — Deepak Batheja Consulting & Business Services www.ihg.com Atlanta, Ga. Exec.VP & CIO www.ghcscw.com Madison,Wis. CIO & Dir.of IS www.wetsealinc.com Foothill Ranch, Calif. VP & CIO www.sutherlandglobal.com Pittsford, N.Y. CTO 3 Colgate-Palmolive Co. $15,327 Tom Greene Consumer Goods 53 Marriott International Inc. $10,908 Carl Wilson Hospitality & Travel 103 AES Corp. $14,119 Elizabeth Hackenson Energy & Utilities 153 Walgreen Co. $63,335 Tim Theriault Retail: General Merchandising www.colgate.com New York, N.Y. VP & CIO www.marriott.com Bethesda, Md. Exec.VP & CIO www.aes.com Arlington,Va. Sr.VP & CIO www.walgreens.com Deerfield, Ill. CIO 4 Merck $27,428 J. Chris Scalet Biotechnology & Pharmaceuticals 54 University of Pennsylvania Health System $3,800 Michael Restuccia Healthcare & Medical 104 Emerson $20,915 Kathy McElligott Manufacturing 154 Procurestaff Technologies — Robert Brooks Consulting & Business Services www.merck.com Whitehouse Station, N.J. Exec.VP Global Services & CIO www.pennmedicine.org Philadelphia, Pa. VP & CIO www.emerson.com St.Louis, Mo. VP & CIO www.procurestaff.com New York, N.Y. VP of Technology 5 University of Pittsburgh Medical Center (UPMC) $7,721 Daniel S. Drawbaugh Healthcare & Medical 55 Asurion Insurance Services — Chris Corrado Insurance 105 Stein Mart Inc. $1,219 Andrew Black Retail: General Merchandising 155 Foley & Lardner LLP — Doug Caddell Consulting & Business Services www.upmc.com Pittsburgh, Pa. Sr.VP & CIO www.asurion.com Nashville,Tenn. Sr.VP & CIO www.steinmart.com Jacksonville, Fla. CIO & VP of IT www.foley.com Milwaukee,Wis. CIO 6 Coca-Cola Enterprises Inc. $21,645 Esat Sezer Consumer Goods 56 SAS $2,310 Suzanne Gordon Information Technology 106 Emkay Inc. $400 Andrew Griffith Automotive 156 Verizon Communications Inc. $107,808 Shaygan Kheradpir Telecommunications www.cokecce.com Atlanta, Ga. Sr.VP & CIO www.sas.com Cary, N.C. VP of IT & CIO www.emkay.com Itasca, Ill. VP of IT www.verizon.com New York, N.Y. Exec.VP & CIO 7 USAA $17,558 Greg Schwartz Insurance 57 Dell Inc. $52,902 Robin Johnson Information Technology 107 UST Global Inc. — Robert Dutile Information Technology 157 Norton Healthcare Inc. $1,300 Joseph DeVenuto Healthcare & Medical www.usaa.com San Antonio,Texas Sr.VP of IT & CIO www.dell.com Round Rock,Texas CIO www.ust-global.com Aliso Viejo, Calif. CIO www.nortonhealthcare.com Louisville, Ky. VP of IS & CIO 8 Healthways Inc. $718 Scott Blanchette Healthcare & Medical 58 Baker Hughes Inc. $9,664 Clif Triplett Manufacturing 108 Hogan Lovells U.S. LLP $865 William Gregory Consulting & Business Services 158 Best Western International Inc. — Scott A. Gibson Hospitality & Travel www.healthways.com Franklin,Tenn. Sr.VP & CIO www.bakerhughes.com Houston,Texas VP & CIO www.hoganlovells.com Wash., D.C. CIO www.bestwestern.com Phoenix, Ariz. Sr.VP Distribution and Strategic Services & CIO 9 Verizon Wireless $62,100 Ajay Waghray Telecommunications 59 Sprint Nextel Corp. $32,260 Peter Campbell Telecommunications 109 Day & Zimmermann Inc. $2,100 Anthony J. Bosco Jr. Consulting & Business Services 159 Pfizer Inc. $50,009 Jeffrey Keisling Biotechnology & Pharmaceuticals www.verizonwireless.com Basking Ridge, N.J. VP of IS & CIO www.sprint.com Overland Park, Kan. Sr.VP of IT www.dayzim.com Philadelphia, Pa. Sr.VP & CIO www.pfizer.com New York, N.Y. Sr.VP & CIO 10 Monster Worldwide $905 Darko Dejanovic Consulting & Business Services 60 Shaw Industries Group Inc. $4,011 Roddy McKaig Manufacturing 110 XO Communications $1,521 Robert Geller Telecommunications 160 Pharmaceutical Product Development Inc. $1,417 Mike Wilkinson Biotechnology & Pharmaceuticals www.monster.com New York, NY Exec.VP & Global CIO & Head of Product www.shawfloors.com Dalton, Ga. VP & CIO www.xo.com Herndon,Va. CIO www.ppdi.com Wilmington, N.C. Exec.VP & CIO 11 United Stationers Supply Co. $4,700 S. David Bent Distribution 61 Apptis Inc. $295 Phil Horvitz Information Technology 111 The Allstate Corp. $32,013 Catherine S. Brune Insurance 161 ADC Telecommunications Inc. $1,150 Chris Jurasek Telecommunications www.unitedstationers.com Deerfield, Ill. Sr.VP of eBusiness Services & Corp.CIO www.apptis.com Chantilly,Va. CTO www.allstate.com Northbrook, Ill. Sr.VP & CIO www.adc.com Eden Prairie, Minn. Pres., ADC Professional Services,VP & CIO 12 Associated Press — Lorraine Cichowski Media & Entertainment 62 Marcus & Millichap Real Estate Investment Services Inc. — Rick Peltz Consulting & Business Services 112 Deere & Co. $23,112 Barry W.Schaffter Manufacturing 162 Webcor Builders LP $1,100 Gregg Davis Construction & Engineering www.ap.org New York, N.Y. Sr.VP & CIO www.marcusmillichap.com Encino, Calif. Sr.VP & CIO www.johndeere.com Moline, Ill. Sr.VP,Intelligent Systems Group & CIO www.webcor.com San Mateo, Calif. Sr.VP & CIO 13 Cincinnati Children’s Hospital Medical Center $1,400 Marianne F.James Healthcare & Medical 63 Heidelberg USA Inc. $3,226 Doug Robbins/Howard Hutchings Manufacturing 113 Broadview Networks Inc. — Kenneth A. Shulman Telecommunications 163 Pioneer Investment Management $975 Peter Noll Banking & Financial Services www.cincinnatichildrens.org Cincinnati, Ohio Sr.VP & CIO www.us.heidelberg.com Kennesaw, Ga. VP Info.Services, U.S./Global CIO www.broadviewnet.com Rye Brook, N.Y. CTO & CIO www.pioneerinvestments.com Boston, Mass. Global CTO 14 Knight Capital Group Inc. $1,162 Steven J. Sadoff Banking & Financial Services 64 Penske Truck Leasing Co. LP $4,000 William L. Stobbart Logistics & Transportation 114 Nationwide Mutual Insurance Co. — Srinivas Koushik Insurance 164 AutoTrader.com Inc. — Bob Hadley Retail: Specialty Merchandising www.knight.com Jersey City, N.J. Exec.VP & CIO www.gopenske.com Reading, Pa. Sr.VP of IT www.nationwide.com Columbus, Ohio Sr.VP & CTO www.autotrader.com Atlanta, Ga. CIO 15 Old Dominion Freight Line Inc. $1,245 Ken Erdner Logistics & Transportation 65 J.C. Penney Company Inc. $17,556 Tom Nealon Retail: General Merchandising 115 Wells Fargo & Co. $88,686 Avid Modjtabai Banking & Financial Services 165 Fair Isaac Corp. $631 Christopher Rence Banking & Financial Services www.odfl.com Thomasville, N.C. VP of IT www.jcpenney.com Plano,Texas Exec.VP & CIO www.wellsfargo.com San Francisco, Calif. Exec.VP,Technology and Operations www.fico.com Minneapolis, Minn. VP,Chief Information and Bus.Trans.Officer 16 IntercontinentalExchange Inc. $995 Edwin Marcial Banking & Financial Services 66 Xerox Corp. $22,000 John McDermott Consulting & Business Services 116 Horizon Blue Cross Blue Shield of New Jersey $8,300 Mark Barnard Insurance 166 VWR International LLC — Charles R. Patel Distribution www.theice.com Atlanta, Ga. Sr.VP & CTO www.xerox.com Norwalk, Conn. Corp.VP & CIO www.horizonblue.com Newark, N.J. Sr.VP of IT & CIO www.vwr.com West Chester, Pa. Sr.VP & CIO 17 ProQuest LLC — Bipin Patel Consulting & Business Services 67 Advanced Health Media LLC $436 Greg Miller Information Technology 117 Tyson Foods Inc. $26,704 Gary D. Cooper Consumer Goods 167 DST Output $482 Frank Delfer Manufacturing www.proquest.com Ann Arbor, Mich. CIO www.ahmdirect.com Bridgewater, N.J. Exec.VP & CIO www.tyson.com Springdale, Ark. Sr.VP & CIO www.dstoutput.com Kansas City, Mo. Exec.VP of Technology & CTO 18 Acxiom Corp. $1,277 David Guzmán Consulting & Business Services 68 Atmos Energy Corp. $4,969 Rich Gius Energy & Utilities 118 Heartland Health $450 Helen V.Thompson Healthcare & Medical 168 Vision-Ease Lens — Flo Kinzel Consumer Goods www.acxiom.com Little Rock, Ark. Sr.VP & CIO www.atmosenergy.com Dallas,Texas VP & CIO www.heartland-health.com St.Joseph, Mo. CIO www.vision-ease.com Ramsey, Minn. CIO 19 General Motors Co. — Terry Kline Automotive 69 Southern Co. $15,743 Becky Blalock Energy & Utilities 119 Maritz $1,430 Gil Hoffman Consulting & Business Services 169 CDW LLC $7,163 Jon Stevens Retail: Specialty Merchandising www.gm.com Detroit, Mich. VP of IT & CIO www.southerncompany.com Atlanta, Ga. Sr.VP & CIO www.maritz.com Fenton, Mo. Sr.VP & CIO www.cdw.com Vernon Hills, Ill. Sr.VP & CIO and Operations 20 First Horizon National Corp. $2,010 Bruce Livesay Banking & Financial Services 70 Keane Inc. — Tom Gary Consulting & Business Services 120 Republic Services Inc. $8,199 William G. Halnon Energy & Utilities 170 Marsh Inc. $4,600 Jim P.Lee Insurance www.firsthorizon.com Memphis,Tenn. Exec.VP & CIO www.keane.com Boston, Mass. CIO www.republicservices.com Phoenix, Ariz. Sr.VP & CIO www.mmc.com New York, N.Y. CIO 21 Harleysville Group Inc. $1,100 Jon Griggs Insurance 71 The Progressive Group of Insurance Cos. $14,600 Raymond Voelker Insurance 121 The Harry Fox Agency Inc. — Louis Trebino Media & Entertainment 171 Activant Solutions Inc. $379 John Breeden/Stuart Maxel Information Technology www.harleysvillegroup.com Harleysville, Pa. VP & CIO www.progressive.com Mayfield Village, Ohio CIO www.harryfox.com New York, N.Y. Sr.VP & CIO www.activant.com Livermore, Calif. VP of IT/Continuous Improvement Mgr. 22 Sparrow Health System $875 Thomas Bres Healthcare & Medical 72 Premier Inc. $675 Joseph M. Pleasant/Keith J. Figlioli Distribution 122 J.B. Hunt Transport Services Inc. $3,203 Kay J. Palmer Logistics & Transportation 172 Wuesthoff Health System Inc. — David L. Barnhart Healthcare & Medical www.sparrow.org Lansing, Mich. VP & CIO www.premierinc.com Charlotte, N.C. Sr.VP & CIO/Sr.VP,Healthcare Informatics www.jbhunt.com Lowell, Ark. Exec.VP & CIO www.wuesthoff.org Rockledge, Fla. CIO 23 Do it Best Corp. $2,460 Mike Altendorf Distribution 73 The Pasha Group — David Beckerman Logistics & Transportation 123 BNY Mellon $7,687 John Fiore Banking & Financial Services 173 Intel Corp. $35,127 Diane Bryant Electronics www.doitbestcorp.com Fort Wayne, Ind. VP of IT www.pashagroup.com Corte Madera, Calif. VP of IT Services www.bnymellon.com New York, N.Y. Exec.VP & CIO www.intel.com Santa Clara, Calif. VP & CIO 24 Mansfield Oil Co. $5,100 Doug Haugh Energy & Utilities 74 Lifespan Corp. $1,374 Carole Cotter Healthcare & Medical 124 Crawford & Co. $970 Brian S. Flynn Insurance 174 Nalco Co. $3,747 Stewart McCutcheon Chemicals www.mansfieldoil.com Gainsville,Ga. Exec.VP & CIO www.lifespan.org Providence, R.I. Sr.VP & CIO www.crawfordandcompany.com Atlanta, Ga. Sr.VP & Global CIO www.nalco.com Naperville, Ill. CIO 25 Exelon Corp. $17,318 Daniel C. Hill Energy & Utilities 75 GXS Inc. $350 Karl Salnoske Information Technology 125 Capital One Financial Corp. $15,951 Rob Alexander Banking & Financial Services 175 Freeman Decorating Services Inc. — Richard Maranville Consulting & Business Services www.exeloncorp.com Chicago, Ill. Sr.VP & CIO www.gxs.com Gaithersburg, Md. Exec.VP & CIO www.capitalone.com McLean,Va. CIO www.freemanco.com Dallas,Texas CIO 26 McCoy Corp. $525 Dennis Strong Retail: Specialty Merchandising 76 Accenture $21,577 Frank B. Modruson Consulting & Business Services 126 Raytheon Co. $24,881 Rebecca R. Rhoads Manufacturing 176 Diversey Holdings Inc. — Brent Hoag Manufacturing www.mccoys.com San Marcos,Texas Sr.VP & CIO www.accenture.com New York, N.Y. CIO www.raytheon.com Waltham, Mass. VP & CIO www.diversey.com Sturtevant,Wis. VP & CIO 27 iQor Inc. $348 Vikas Kapoor Consulting & Business Services 77 Automatic Data Processing Inc. $8,928 Michael L. Capone Consulting & Business Services 127 Sabre Holdings Corp. — Barry Vandevier Hospitality & Travel 177 AstraZeneca plc $32,804 Richard Williams Biotechnology & Pharmaceuticals www.iqor.com New York, N.Y. President & CEO www.adp.com Roseland, N.J. Corporate VP & CIO www.sabre-holdings.com Southlake,Texas CIO www.astrazeneca.com Wilmington, Del. Global CIO 28 Eli Lilly & Co. $21,836 Michael C. Heim Biotechnology & Pharmaceuticals 78 Odyssey HealthCare Inc. $686 James Zoccoli Healthcare & Medical 128 Hyatt Hotels Corp. $3,332 Mike Blake Hospitality & Travel 178 Lowe’s Companies Inc. $47,200 Steven M. Stone Retail: Specialty Merchandising www.lilly.com Indianapolis, Ind. Sr.VP & CIO www.odsyhealth.com Dallas,Texas VP of IT www.hyatt.com Chicago, Ill. CIO www.lowes.com Mooresville, N.C. Sr.VP & CIO 29 Equifax Inc. $1,825 David C.Webb Banking & Financial Services 79 Tech Data Corp. $22,100 John Tonnison Distribution 129 T-Mobile USA Inc. $21,531 Cole Brodman Telecommunications 179 AT&T Inc. $123,000 Thaddeus Arroyo Telecommunications www.equifax.com Atlanta, Ga. CIO www.techdata.com Clearwater, Fla. Exec.VP & CIO www.t-mobile.com Bellevue,Wash. Chief Technology & Innovation Officer www.att.com Dallas,Texas CIO 30 Dunham & Smith Agencies — Mike Skinner Consulting & Business Services 80 Pacific Gas & Electric Co. $13,399 Patricia Lawicki Energy & Utilities 130 Genuine Parts Co. $10,058 Charles A. Chesnutt Distribution 180 Heartland Payment Systems Inc. $1,652 Kris Herrin Banking & Financial Services www.dunhamandsmith.com St.Louis, Mo. CIO www.pge.com San Francisco, Calif. Sr.VP & CIO www.genpt.com Atlanta, Ga. Sr.VP of IT & Process Improvement www.heartlandpaymentsystems.com Princeton, N.J. CTO 31 Ross Stores Inc. $7,200 Michael K. Kobayashi Retail: Specialty Merchandising 81 WinWholesale Inc. $1,600 Steve Hangen Distribution 131 Digital River Inc. $404 Ted Hoy Information Technology 181 Prudential Financial Inc. $32,688 Barbara Koster Banking & Financial Services www.rossstores.com Pleasanton, Calif. Exec.VP Supply Chain, Allocation & CIO www.winwholesale.com Dayton, Ohio CIO www.digitalriver.com Minneapolis, Minn Sr.VP of Product & Technology www.prudential.com Newark, N.J. CIO 32 Armada Supply Chain Solutions $1,250 Joseph Brado Logistics & Transportation 82 Baldor Electric Co. $1,524 Mark Shackelford Manufacturing 132 Scottrade Inc. $822 Ian Patterson Banking & Financial Services 182 UPS Inc. $45,300 David Barnes Logistics & Transportation www.armada-scs.com Pittsburgh, Pa. VP & CIO www.baldor.com Fort Smith, Ark. VP of IS www.scottrade.com St.Louis, Mo. CIO www.ups.com Atlanta, Ga. Sr.VP & CIO 33 Concentra Inc. $754 Suzanne Kosub Healthcare & Medical 83 FedEx Corp. $34,700 Robert B. Carter Logistics & Transportation 133 McGraw-Hill Cos. Inc. $5,952 Bruce Marcus Media & Entertainment 183 Alliance One International Inc. $2,308 William D. Pappas Manufacturing www.concentra.com Addison,Texas Sr.VP & CIO www.fedex.com Memphis,Tenn. Exec.VP & CIO www.mcgraw-hill.com New York, N.Y. Exec.VP & CIO www.aointl.com Morrisville, N.C. Sr.VP & CIO 34 Stewart Information Services Corp. $1,707 Murshid Khan Insurance 84 Wal-Mart Stores Inc. $405,046 Rollin Ford Retail: General Merchandising 134 Rabobank N.A. $378 Erwin Martinez Banking & Financial Services 184 Children’s Hospital & Medical Center $265 George Reynolds,MD Healthcare & Medical www.stewart.com Houston,Texas Sr.VP & CIO www.walmart.com Bentonville, Ark. Exec.VP & CIO www.rabobankamerica.com El Centro, Calif. CIO www.childrensomaha.org Omaha, Neb. Chief Med.Informatics Officer; Acting VP & CIO 35 Herbalife Ltd. $2,325 Mark Schissel Consumer Goods 85 Con-way Inc. $4,269 Jacquelyn Barretta Logistics & Transportation 135 State Street Corp. $8,640 Christopher Perretta Banking & Financial Services 185 The Hartford Financial Services Group Inc. $24,701 Brian O’Connell Insurance www.herbalife.com Los Angeles, Calif. CIO www.con-way.com San Mateo, Calif. Sr.VP & CIO www.statestreet.com Boston, Mass. Exec.VP & CIO www.thehartford.com Hartford, Conn. Sr.VP & CIO 36 Waste Management Inc. $11,791 Puneet Bhasin Logistics & Transportation 86 CVR Energy Inc. $3,136 Michael Brooks Energy & Utilities 136 CenterPoint Properties — Scott Zimmerman Consulting & Business Services 186 A.T.Kearney Inc. — John Laughhunn Consulting & Business Services www.wm.com Houston,Texas Sr.VP & CIO www.cvrenergy.com Sugar Land,Texas VP & CIO www.centerpoint-prop.com Oak Brook, Ill. CIO www.atkearney.com Chicago, Ill. CTO 37 Acuity, A Mutual Insurance Co. $745 Neal Ruffalo Insurance 87 Hewitt Associates Inc. $3,000 David Baruch Consulting & Business Services 137 Tessco Technologies Inc. $522 Doug Rein Distribution 187 Children’s Medical Center Dallas $884 Pamela Arora Healthcare & Medical www.acuity.com Sheboygan,Wis. VP & CIO www.hewitt.com Lincolnshire, Ill. CIO www.tessco.com Hunt Valley, Md. Sr.VP,Performance Systems & Operations www.childrens.com Dallas,Texas VP & CIO 38 Hewlett-Packard Co. $114,552 Randy Mott Information Technology 88 Collabera Inc. $300 Bala Variyam Information Technology 138 Premiere Global Services Inc. $602 David M. Guthrie Consulting & Business Services 188 ABF Freight System Inc. $1,470 Dave Cogswell Logistics & Transportation www.hp.com Palo Alto, Calif. Exec.VP & CIO www.collabera.com Morristown, N.J. CIO & Head, Collabera Labs www.pgi.com Atlanta, Ga. CTO www.abf.com Fort Smith, Ark. President, Data-Tronics 39 Alberto-Culver Co. $1,434 Tony Bender Consumer Goods 89 VF Corp. $7,200 Martin Schneider Consumer Goods 139 HD Supply Inc. $7,418 Michele Markham Distribution 189 Quintiles — Bill Deam Biotechnology & Pharmaceuticals www.alberto.com Melrose Park, Ill. VP & CIO www.vfc.com Greensboro, N.C. VP & CIO www.hdsupply.com Atlanta, Ga. Sr.VP & CIO www.quintiles.com Durham, N.C. Exec.VP & CIO, Global IT 40 Procter & Gamble Co. $79,029 Filippo Passerini Consumer Goods 90 Banner Health $4,677 Michael S.Warden Healthcare & Medical 140 VMware Inc. $2,024 Mark Egan Information Technology 190 Wheels Inc. $2,000 Steven Loos Consulting & Business Services www.pg.com Cincinnati, Ohio President, Global Business Services & CIO www.bannerhealth.com Phoenix, Ariz. Sr.VP of IT & CIO www.vmware.com Palo Alto, Calif. CIO www.wheels.com Des Plaines, Ill. VP of IT & CIO 41 Royal Caribbean Cruises Ltd. $5,890 Bill Martin Hospitality & Travel 91 Intuit Inc. $3,455 Ginny Lee Information Technology 141 International Business Machines Corp. $95,758 Patrick Toole Information Technology 191 CSG Systems International Inc. $501 Lonnie Mahrt Information Technology www.royalcaribbean.com Miami, Fla. VP & CIO www.intuit.com Mountain View, Calif. Sr.VP & CIO www.ibm.com Armonk, N.Y. VP & CIO www.csgsystems.com Englewood, Colo. Sr.VP of Operations & CIO 42 Avon Products Inc. $10,383 Donagh Herlihy Consumer Goods 92 R.R. Donnelley & Sons Co. $9,857 Kenneth E. O’Brien Consulting & Business Services 142 Product Partners LLC $320 Steven Winshel Consumer Goods 192 Taco Bell Corp. $10,836 Douglas Wines Hospitality & Travel www.avoncompany.com New York, N.Y. Sr.VP of IT & CIO www.rrdonnelley.com Chicago, Ill. Exec.VP & CIO www.beachbody.com Santa Monica, Calif. CIO www.tacobell.com Irvine, Calif. Director, IT Services 43 Pacific Northwest National Laboratory $1,100 Jerry Johnson Consulting & Business Services 93 American Airlines Inc. $19,898 Monte Ford Logistics & Transportation 143 Parkland Health & Hospital System $1,080 Jack Kowitt Healthcare & Medical 193 Split Cooperative LLC — Greg Smith Consulting & Business Services www.pnl.gov Richland,Wash. CIO www.aa.com Fort Worth,Texas Sr.VP of IT & CIO www.parklandhospital.com Dallas,Texas Sr.VP & CIO www.splitcoop.com New York, N.Y. Exec.VP & CIO 44 Caritas Christi Health Care Todd Rothenhaus, MD Healthcare & Medical 94 Movado Group Inc. $378 Frank A. Morelli Consumer Goods 144 CoxHealth $2,200 Bruce Robison Healthcare & Medical 194 Transitions Optical Inc. — Maria Zabetakis Consumer Goods www.caritaschristi.org Boston, Mass. — Sr.VP & CIO www.movadogroup.com Paramus, N.J. Sr.VP Global Business Processes & CIO www.coxhealth.com Springfield, Mo. VP & CIO www.transitions.com Pinellas Park, Fla. Americas IT Director 45 Pegasus Solutions Inc. Mike Kistner Hospitality & Travel 95 Salesforce.com Inc. $1,305 Kirsten Wolberg Information Technology 145 AG Interactive $1,636 Joseph Yanoska Media & Entertainment 195 Jones Apparel Group Inc. $3,327 Norm Veit Consumer Goods www.pegs.com Dallas,Texas — CEO www.salesforce.com San Francisco, Calif. CIO www.aginteractive.com Cleveland, Ohio VP of Technology www.jonesapparel.com Bristol, Pa. Exec.VP of MIS 46 Lockheed Martin Corp. $45,189 Sondra Barbour Manufacturing 96 CME Group Inc. $2,613 Kevin Kometer Banking & Financial Services 146 Dr Pepper Snapple Group Inc. $5,531 Virginia Guthrie Consumer Goods 196 Paccar Inc $8,087 Kyle Quinn Automotive www.lockheedmartin.com Bethesda, Md. VP of Enterprise Business Services & CIO www.cmegroup.com Chicago, Ill. Managing Director & CIO www.drpeppersnapplegroup.com Plano,Texas Sr.VP & CIO www.paccar.com Bellevue,Wash. VP & CIO 47 Del Monte Foods Co. $3,627 Marc L. Brown Consumer Goods 97 Travelport Ltd. — Sue Powers Hospitality & Travel 147 Amgen Inc. $14,642 Thomas J. Flanagan Biotechnology & Pharmaceuticals 197 Valassis Communications Inc. $2,244 Steve Carrington Consulting & Business Services www.delmonte.com San Francisco, Calif. Sr.VP Corp.Svc.Center & CIO www.travelport.com Parsippany, N.J. CEO IT Services & Software www.amgen.com Thousand Oaks, Calif. Sr.VP & CIO www.valassis.com Livonia, Mich. VP & CIO 48 Teva Pharmaceuticals U.S.A. Inc. $13,899 Jimmy Z.Wang Biotechnology & Pharmaceuticals 98 Access Insurance Co. — Andrew Dunn Insurance 148 AXA Equitable Life Insurance Co. $3,242 Kevin E. Murray Insurance 198 Indiana Farm Bureau Insurance $700 Greg Clancy Insurance www.tevausa.com North Wales, Pa. VP & CIO www.accessgeneral.com Atlanta, Ga. CIO www.axa-equitable.com New York, N.Y. Exec.VP & CIO www.infarmbureau.com Indianapolis, Ind. Sr.VP & CIO 49 PNC Financial Services Group Inc. $16,228 Anuj Dhanda Banking & Financial Services 99 Fifth Third Bancorp. $9,450 Joseph Robinson Banking & Financial Services 149 Western Corporate Federal Credit Union (WesCorp) — Gene Berger Banking & Financial Services 199 Chiquita Brands International Inc. $3,470 — Consumer Goods www.pnc.com Pittsburgh, Pa. Exec.VP & CIO www.53.com Cincinnati, Ohio Exec.VP & CIO www.wescorp.org San Dimas, Calif. VP of IT www.chiquitabrands.com Cincinnati, Ohio 50 Aetna Inc. $34,764 Meg McCarthy Insurance 100 W.W.Grainger Inc. $6,222 Timothy M. Ferrarell Distribution 150 Atlantic Health $1,092 Linda Reed Healthcare & Medical 200 Highmark Inc. $13,700 Tom Tabor Insurance www.aetna.com Hartford, Conn. Sr.VP of Inno.,Tech.,& Serv.Operations & CIO www.grainger.com Lake Forest, Ill. Sr.VP & CIO www.atlantichealth.org Morristown, N.J. VP of IS & CIO www.highmark.com Pittsburgh, Pa. Sr.VP & CIO

Financial data is from public sources and company supplied. Revenue is for latest fiscal year. Dashes indicate companies requesting financial data not be disclosed.

Financial data is from public sources and company supplied. Revenue is for latest fiscal year. Dashes indicate companies requesting financial data not be disclosed. RANK COMPANY REVENUE IN MILLIONS HIGHEST-RANKING IT EXECUTIVE INDUSTRY 201 Austin Energy $1,060 Karl Popham Energy & Utilities www.austinenergy.com Austin,Texas CIO (Interim) 202 Synopsys Inc. $1,360 Debra Martucci Information Technology www.synopsys.com Mountain View, Calif. CIO & VP of IT InformationWeek 500 203 Avnet Inc. $16,230 Steve Phillips Distribution www.avnet.com Phoenix, Ariz. Sr.VP & CIO 204 Northern Trust Corp. $3,787 Peter Magrini/Jim Scholefield . Banking & Financial Services www.northerntrust.com Chicago, Ill. Exec.VP,Tech Apps./Sr.VP, Tech.Infra.& Ops. 205 National Oilwell Varco Distribution Services $1,350 Noel Connolly Manufacturing www.nov.com Houston,Texas Sr.VP of Supply Chain Management 206 Southern California Edison $12,400 Mahvash Yazdi Energy & Utilities www.sce.com Rosemead, Calif. Sr.VP Business Integration & CIO 207 Flextronics International Ltd. $24,111 David Smoley Electronics www.flextronics.com San Jose, Calif. Sr.VP & CIO 208 CUNA Mutual Group $2,764 Rick Roy Banking & Financial Services www.cunamutual.com Madison,Wis. Sr.VP & CIO 209 Blackbaud Inc. $309 Todd Lant Information Technology www.blackbaud.com Charleston, S.C. VP of IT 210 InnerWorkings Inc. $400 Neil P.Graver Consulting & Business Services www.inwk.com Chicago, Ill. Sr.VP of Technology 211 The Charmer Sunbelt Group $4,800 Paul Fipps Distribution www.charmer-sunbelt.com New York, N.Y. Corp.VP of Business Services & CIO 212 Siemens Healthcare $16,085 John Glaser Healthcare & Medical www.medical.siemens.com/us Malvern, Pa. CEO 213 HCA Inc. — Noel Brown Williams Healthcare & Medical www.hcahealthcare.com Nashville,Tenn. Sr.VP & CIO 214 Principal Financial Group Inc. $8,849 Gary Scholten Banking & Financial Services www.principal.com Des Moines, Iowa Sr.VP & CIO 215 Progressive Medical Inc. $280 Angelo Mazzocco Healthcare & Medical www.progressive-medical.com Westerville, Ohio CIO 216 SunGard Availability Services LP $1,520 Donald H. Hopkins Information Technology www.sungardas.com Wayne, Pa. VP & CIO 217 Hologic Inc. $1,637 David Rudzinsky Healthcare & Medical www.hologic.com Bedford, Mass. Sr.VP of IS & CIO 218 Nygard International Partnership $500 Len Nicolas Consumer Goods www.nygard.com New York, N.Y. COO 219 Veyance Technologies Inc. $1,600 Nathaniel Leonard Manufacturing www.veyance.com Fairlawn, Ohio VP & GM of IT,Logistics,Procurement & Seawing 220 The New York Times Co. $2,440 Joseph Seibert Media & Entertainment www.nytco.com New York, N.Y. Sr.VP & CIO 221 CRST International Inc. — Steve Hannah Logistics & Transportation www.crst.com Cedar Rapids, Iowa VP & CIO 222 Newell Rubbermaid Inc. $5,578 Gordon Steele Consumer Goods www.newellrubbermaid.com Atlanta, Ga. Sr.VP Program Management Office & CIO 223 FFE Transportation Inc. $373 Nick Cook Logistics & Transportation www.ffeinc.com Dallas,Texas VP & CIO 224 Poudre Valley Health System $1,000 Russell Branzell Healthcare & Medical www.pvhs.org Fort Collins, Colo. VP & CIO 225 Rackspace Hosting Inc. $629 Steve Mills Consulting & Business Services www.rackspace.com San Antonio,Texas CIO 226 Doshi Diagnostic Imaging Services — Tariq Rahim Shaikh/Anish Berry Healthcare & Medical www.doshidiagnostic.com Hicksville, N.Y. COO & CIO/President 227 Transatlantic Holdings Inc. $4,446 George Di Martino Insurance www.transre.com New York, N.Y. Sr.VP & CIO 228 Global Crossing Ltd. $2,536 Anthony D. Christie Telecommunications www.globalcrossing.com Florham Park, N.J. CTO & CIO 229 Financial Industry Regulatory Authority Inc. — Marty Colburn Consulting & Business Services www.finra.org Wash., D.C. Exec.VP & CTO 230 Fiserv Inc. $4,077 Maryann Goebel Banking & Financial Services www.fiserv.com Brookfield,Wis. Exec.VP & CIO 231 Schneider National Inc. — Judith Lemke Logistics & Transportation www.schneider.com Green Bay,Wis. Exec.VP & CIO 232 K&L Gates LLP $1,000 Steven W. Agnoli Consulting & Business Services www.klgates.com Pittsburgh, Pa. CIO 233 Martin Marietta Materials Inc. $1,703 Chuck Musciano Metals & Natural Resources www.martinmarietta.com Raleigh, N.C. VP & CIO 234 Microsoft Corp. $58,437 Tony Scott Information Technology www.microsoft.com Redmond,Wash. Corp.VP & CIO 235 Littelfuse Inc. $430 Ed Earl Electronics www.littelfuse.com Chicago, Ill. CIO 236 Orbital Sciences Corp. $1,100 Ken Bell Manufacturing www.orbital.com Dulles,Va. Sr.VP & CIO 237 ZSL Inc. — Shivakumar Kandaswamy Consulting & Business Services www.zslinc.com Edison, N.J. Exec.VP of IT and R&D 238 OhioHealth — Michael Krouse Healthcare & Medical www.ohiohealth.com Columbus, Ohio System VP & CIO 239 Grange Mutual Casualty Co. $1,300 Michael C. Fergang Insurance www.grangeinsurance.com Columbus, Ohio VP & CIO 240 Emcor Group Inc. $5,548 Joseph A. Puglisi Construction & Engineering www.emcorgroup.com Norwalk, Conn. VP & CIO 241 Freescale Semiconductor Inc. $3,508 Sam Coursen Electronics www.freescale.com Austin,Texas VP & CIO 242 PLS Logistics Services — Mark Ohlund Logistics & Transportation www.plslogistics.com Cranberry , Pa. VP of Technology Strategy 243 Geisinger Health System $2,300 Frank Richards Healthcare & Medical www.geisinger.org Danville, Pa. CIO 244 Steris Corp. $1,299 Mario Shahidian Healthcare & Medical www.steris.com Mentor, Ohio VP & CIO 245 Boeing Co. $68,281 John Hinshaw Manufacturing www.boeing.com Chicago, Ill. VP of IT & CIO 246 EMC Corp. $14,026 Sanjay Mirchandani Information Technology www.emc.com Hopkinton, Mass. Sr.VP & CIO 247 BMC Software Inc. $1,872 Mark Settle Information Technology I NFORMATIONW EEK’ S 22ND A NNUAL R ANKING www.bmc.com Houston,Texas CIO 248 Medtronic Inc. $14,599 Michael Hedges Healthcare & Medical F HE EADING SERS F USINESS ECHNOLOGY www.medtronic.com Minneapolis, Minn. CIO O T L U.S. U O B T 249 Blackboard Inc. $439 John Lambeth Information Technology www.blackboard.com Wash., D.C. VP,Technology Solutions Group 250 OneAmerica Financial Partners Inc. $1,217 Gene Berry Banking & Financial Services www.oneamerica.com Indianapolis, Ind. VP of IT & CIO Turn page, open flaps to see the list

48 Sept.13, 2010 informationweek.com informationweek.com Sept.13, 2010 41

InformationWeek MERCK

Your Health? There’s An App For That

Scalet’s banking on the ubiquity of smartphones [to empower patients

harmaceutical giant Merck tive VP of global services. The com- plication to record essential health in- is bringing patient care pany commissioned a group within formation, such as blood glucose lev- into the age of smart- the IT organization, called Technology els, which patients measure any- phones. The company has Innovation for Human Health, to take where from once to five times a day launched a series of mo- a forward-looking view of health IT. by drawing blood and using a glu- Pbile applications to help users manage Working with key people from vari- cometer. Patients can enter reads into ailments ranging from cancer to dia- ous Merck business units, the group the app, compiling a record for when betes to migraines. These free, un- looked at the challenges in the health- they next visit their doctors. Vree also branded applications—including care industry around education, can help users keep track of their iChemoDiary, iManage Migraine, and awareness, and behaviors, Scalet says. medications and provide information Vree, which is for people with Type II Merck also went right to the around diet and exercise. diabetes—are designed to help pa- source—patients. The group then moved to the tients and caregivers track symptoms, “We found that in speaking to pa- iChemoDiary and iManage Migraine implement treatment plans, and get tients, they forget information, and it applications. The iChemoDiary app access to important health informa- can be difficult to track things in real helps cancer patients who are under- tion. The apps are available on a vari- time,” says Steve Hoelper, a project going chemotherapy or radiation ety of mobile platforms, including An- lead in the Technology Innovation for track symptoms and side effects, droid, Apple iPhone, BlackBerry, and Human Health group. Recognizing such as nausea, vomiting, and dizzi- Windows Mobile. The company says the growing popularity of smart- ness. The application can create it has had hundreds of thousands of phones and mobile devices, the graphs of symptoms over time, pro- downloads. group decided to see if a mobile ap- viding a sort of personal analytics “We felt technology could play a plication could help patients better system. “When you speak with a huge role in streamlining healthcare manage their own care. physician or nurse, you can discuss and helping educate consumers The first application developed how you feel, and have data to back around health and wellness,” says J. was Vree. People with type II diabetes it up,” Hoelper says. Chris Scalet, Merck’s CIO and execu- and their caregivers can use the ap- The iManage Migraine app was re-

50 Sept.13, 2010 informationweek.com InformationWeek MERCK

quested by Merck’s customer advis- opportunity to make that happen.” cryption. “The consumer retains ers. According to Merck, migraine The company is looking at pro- control,” Swanson says. “It’s their in- sufferers are generally female be- viding these applications in lan- formation, and they decide how to tween the ages of 18 and 49 years— guages other than English. “Diabetes share it.” also an ideal demographic of smart- is worldwide,” says Jim Swanson, At present, the mobile apps don’t phone users. As with the other apps, Merck’s VP of IT and a project leader have the ability to connect to other iManage Migraine helps patients for the mobile applications. “Take applications, such as a physician’s or track symptoms so that they can pro- China—unless you’re in a city with hospital’s electronic medical records vide more-detailed information to a high level of healthcare, it’s system. Over the long term, however, their physicians. difficult for patients to get educated. Merck expects such capabilities could But you can give someone a cell be introduced. “That’s where the in- Health And Wealth phone, and content can be easily dustry is going and where value is While the three apps target differ- distributed.” going to be generated,” Hoelper says. ent conditions, they have the same A mobile application takes about At present, however, the regulatory goal: to improve patient outcomes. three months to develop, according and technological framework simply Treatments for these ailments can to Merck. The effort involves multi- doesn’t exist. “Until health informa- be complex and may have to be car- ple groups within the company, in- tion exchanges emerge, we can’t con- ried out over long periods of time, cluding a usability lab, the market- nect to data stores in a cost-effective so it’s essential that patients stay on ing department, business analysts, way,” he says. “The plumbing needs top of their health. “One big chal- software developers, and of course to be laid first.” lenge doctors have is keeping pa- the legal department. Privacy of pa- Meantime, the company is moving tients on therapy: taking medicine, tient data is paramount, so the apps forward with other mobile apps. It’s doing exercise, monitoring diets,” encrypt data stored on the mobile providing real-time access to medical Scalet says. “We think this is a great device using 128-bit asymmetric en- reference materials like MerckMedi- cus and the Merck Manual Home and Professional editions, making Merck’s Many IT Challenges them available to physicians via mobile devices, such as iPhones and eveloping apps isn’t all Merck CIO and executive VP of global serv- BlackBerrys. The company says the ices J. Chris Scalet is up to. In March 2009, the drugmaker an- MerckMedicus app was downloaded D nounced it was acquiring rival Schering-Plough for just over $41 4,500 times in the first two months billion in cash and stock.Eighteen months later,integrating the two phar- it was available. maceutical giants remains a huge challenge. Integrating the two com- While the disease-related apps are pany’s R&D, manufacturing, supply chain, sales, and marketing organiza- unbranded, the company also is ex- tions without disrupting customer service is high on Scalet’s agenda. perimenting with mobile apps that Merck is also rolling out a global ERP system from SAP.The goal is to blend health information with not- have a common set of data that serves as the “single version of the truth” so-subtle pitches for Merck products. for the entire organization, something Scalet expects will yield results in Case in point is the Coppertone the realm of business analytics. MyUV Alert, a mobile application re- The company already has virtualized a significant portion of its server leased this summer that lets users and storage infrastructure,which has cut the time it takes to provision ca- check the local UV index and offers pacity from weeks to days. Now it’s aggressively moving toward the pri- sun care tips, including reminders to vate cloud—and cautiously evaluating public services. apply sun block. The application can Scalet is cautious about the public cloud— as a highly regulated indus- also send Coppertone coupons to try, Merck has to move carefully when turning over applications and data customers. According to Merck, the to a provider. But that hasn’t stopped the company from embracing the MyUV Alert was downloaded more cloud for applications it believes are appropriate to move outside the fire- than 20,000 times in the first two wall,namely SaaS-based CRM and some specialized HR apps that run as a weeks of its release. service. —Andrew Conry-Murray —Andrew Conry-Murray ([email protected])

52 Sept.13, 2010 informationweek.com

UNIVERSITY OF PITTSBURGH MEDICAL CENTER

Drawbaugh (left) and Shrestha are pushing [ to commercialize more UPMC technology

t University of commercialized several IT-based inter’s 20,000 radiologists, doctors, and Pittsburgh Med- novations, including Via Oncology, a other clinicians access reports and ical Center, being subsidiary whose Web decision-sup- imaging studies in any of the PACS an early adopter port tools help oncologists choose and other imaging systems across the of technology isn’t cancer treatments that are likely to enterprise. That way, they know good enough. produce the best outcomes and least which tests have already been done UPMC’s culture is complications for patients. Those on a patient before scheduling new about innovation and entrepreneur- tools were developed originally for ones. The system also makes previ- Aship—developing and deploying tech- UPMC’s doctors to treat cancer pa- ous images available to doctors for nology-based products and services not tients at any of its 38 therapy centers. comparison. only for internal use, but also for sale Another recent UPMC innovation Having this information available to other healthcare providers is SingleView, a standards-based plat- has reduced considerably the num- The medical center operates 20 form that pulls together the multiple ber of unnecessary and redundant hospitals, 400 doctor groups, outpa- picture archiving and communica- tests ordered for patients and kept tient care facilities, and a healthcare tions systems, or PACS, used across patients from being exposed to un- plan in western Pennsylvania. It has a the medical center’s facilities. With necessary radiation, says Dr. Rasu decade-long history of developing 20 hospitals and 30 outpatient imag- Shrestha, medical director of digital tech innovations to improve proces- ing centers, UPMC has multiple im- imaging informatics and a leader of ses, reduce costs, and boost the qual- aging systems and archives, each cre- SingleView. It’s also reducing the num- ity of care, both on its own and in ating a silo of patient information. ber of disputes with payers over un- partnership with vendors and other SingleView, developed by a small needed or redundant testing, he says. companies. team of UPMC clinicians and IT staff Other large integrated healthcare Just in the last year, UPMC has two years ago, lets the medical cen- providers, including Kaiser Perma-

56 Sept.13, 2010 informationweek.com InformationWeek

nente and the U.S. Department of from 22,000 to 49,000, Sikora says. Virginia easily share patient records Veterans Affairs, are keeping an eye The virtualization and consolida- and other data. on SingleView, Shrestha says, though tion have CIO Dan Drawbaugh and UPMC also recently launched the UPMC has yet to decide whether to CEO Jeffrey Romoff toying with new Center for Connected Medicine, take it commercial. Besides being a opportunities. “We’re talking about collaborating with more than a useful image management tool, Sin- public and private cloud computing, gleView also has “the makings of a how UPMC could position our pri- health information exchange with a vate cloud for virtualization that we UPMC Innovation keen focus on radiology,” he says. have in place and establish relation- SmartRoom An ultrasound- ships with key partners on the public based location system that The Big Consolidation cloud,” Drawbaugh says. feeds information to staff and Five years ago, UPMC launched a UPMC has already started bringing patients multimillion-dollar, eight-year “IT to market new products and services transformation,” in partnership with related to its partnership with IBM. Via Oncology A wholly owned IBM, under which the medical cen- In late July, the two companies an- subsidiary that sells evidence- ter has virtualized and consolidated nounced a joint multimillion-dollar based,Web clinical decision- servers in its three largest data cen- investment in SmartRoom, a UPMC support tools to cancer doctors ters and built a private cloud. subsidiary that will market a loca- nationwide UPMC’s virtualized environment of tion-based system developed by SingleView Enterprise, feder- Wintel and Unix servers, networking, UPMC. SmartRoom embeds ultra- ated picture archiving and com- and storage is where all production, sound technology in badges worn by munications system that pro- testing, enterprise, and clinical sys- UPMC staffers, so that when they vides a unified view of patients’ tems run, says Paul Sikora, VP of IT walk into a patient’s room they’re medical imaging tests regard- transformation. identified on a bedside monitor. The less of where they’re stored That effort has saved UPMC at system automatically provides doctors least $80 million over three years in and nurses with pertinent patient in- Center for Connected Medicine capital and operating costs, accord- formation and workflow tools so that UPMC and 14 partners, including to an IDC evaluation. Included in important data is more easily accessed ing IBM, Google, and Verizon that savings is $17 million to $20 and entered into digital patient Wireless, develop healthcare million by reducing the number of records. applications and technologies Wintel servers from 1,300 to 22 and While UPMC and IBM won’t say Unix servers from 74 to 14; those exactly how much they’ve invested in dozen tech companies, including Unix boxes are now logically parti- SmartRoom, the companies describe Google, IBM, and Verizon Wireless, tioned into 500 servers, Sikora says. it as the largest investment to date on new healthcare applications. It UPMC’s Windows system engineers from the $50 million joint develop- also has created a technology devel- can now handle 159 servers each, up ment fund they created as part of the opment center, for which it’s re- from 102 before the transformation. IT transformation partnership. cruiting 25 high-level engineers to On the Unix side, they deal with 49 Drawbaugh won’t say exactly how work on mobile healthcare and servers apiece, up from 35. much of UPMC’s $7.7 billion annual other applications. The data center went from 48 cabi- revenue is generated by spun-out These projects and partnerships all nets to two, with plenty of space to businesses like Via Oncology and reflect UPMC’s relentless focus on grow in the next five years. Before the SmartRoom; those two together have technology innovation and entrepre- transformation, UPMC expected to be generated “multimillion dollars” and neurship. “It’s part of the DNA of out of space in two years, Sikora says. are profitable, he says. UPMC that whatever you’re doing UPMC did this consolidation while UPMC is involved in other collabo- today you’re planning for improve- growing: Its Windows environment rative efforts, including a health in- ment tomorrow,” Sikora says. It’s grew 229% in terms of apps added formation exchange being launched what makes UPMC a healthcare in- and expanded, its Unix environment that will let healthcare providers and dustry standout. grew 238%, storage increased 685%, other institutions in western Pennsyl- —Marianne Kolbasuk McGee and the number of desktop users rose vania and parts of Ohio and West ([email protected])

Sept.13, 2010 57

MASTERS OF TECHNOLOGY The full alphabetized list of this year’s INFORMATIONWEEK 500 with new insight into regional trends n n o o i i g g

e COMPANY HIGHEST-RANKING IT EXECUTIVE e COMPANY HIGHEST-RANKING IT EXECUTIVE R R

ABF Freight System Inc. Dave Cogswell Applied Materials Inc. Jay Kerley/Ron Kifer www.abf.com Fort Smith, Ark. President, Data-Tronics www.appliedmaterials.com Santa Clara, Calif. Corp.VP & Deputy CIO/Group VP & CIO ABM Industries Inc. Doug Gilbert Apptis Inc. Phil Horvitz www.abm.com New York, N.Y. VP & CIO www.apptis.com Chantilly,Va. CTO Accenture Frank B.Modruson Aramark Corp. David Kaufman www.accenture.com New York, N.Y. CIO www.aramark.com Philadelphia, Pa. CIO Access Insurance Co. Andrew Dunn Arch Coal Inc. David Hartley www.accessgeneral.com Atlanta, Ga. CIO www.archcoal.com St.Louis, Mo. VP & CIO Accretive Health Inc. Paul T.Cottey Arkansas Blue Cross & Blue Shield Joseph S.Smith www.accretivehealth.com Chicago, Ill. CIO www.arkbluecross.com Little Rock, Ark. Sr.VP & CIO Activant Solutions Inc. John Breeden/Stuart Maxel Armada Supply Chain Solutions Joseph Brado www.activant.com Livermore, Calif. VP of IT/Continuous Improvement Mgr. www.armada-scs.com Pittsburgh, Pa. VP & CIO Actuant Corp. Dennis B.Biederman Arrow Electronics Inc. Vincent Melvin www.actuant.com Butler,Wis. IT Director www.arrow.com Melville, N.Y. VP & CIO Acuity,A Mutual Insurance Co. Neal Ruffalo Associated Press Lorraine Cichowski www.acuity.com Sheboygan,Wis. VP & CIO www.ap.org New York, N.Y. Sr.VP & CIO Acxiom Corp. David Guzmán AstraZeneca plc Richard Williams www.acxiom.com Little Rock, Ark. Sr.VP & CIO www.astrazeneca.com Wilmington, Del. Global CIO ADC Telecommunications Inc. Chris Jurasek Asurion Insurance Services Chris Corrado www.adc.com Eden Prairie, Minn. Pres., ADC Professional Services,VP & CIO www.asurion.com Nashville,Tenn. Sr.VP & CIO Advanced Health Media LLC Greg Miller AT&T Inc. Thaddeus Arroyo www.ahmdirect.com Bridgewater, N.J. Exec.VP & CIO www.att.com Dallas,Texas CIO Advocate Health Care Bruce D.Smith A.T.Kearney Inc. John Laughhunn www.advocatehealth.com Oak Brook, Ill. Sr.VP & CIO www.atkearney.com Chicago, Ill. CTO Aerojet-General Corp. Craig Halterman Atlantic Health Linda Reed www.aerojet.com Rancho Cordova, Calif. VP & CIO www.atlantichealth.org Morristown, N.J. VP of IS & CIO AES Corp. Elizabeth Hackenson Atlas World Group Inc. Mike Neeley www.aes.com Arlington,Va. Sr.VP & CIO www.atlasworldgroup.com Evansville, Ind. VP & CIO Aetna Inc. Meg McCarthy Atmos Energy Corp. Rich Gius www.aetna.com Hartford, Conn. Sr.VP of Inno.,Tech.,& Serv.Operations & CIO www.atmosenergy.com Dallas,Texas VP & CIO Aflac Gerald Shields Atos Origin Inc. Paul Stewart www.aflac.com Columbus, Ga. Sr.VP & CIO www.atosorigin.com Houston,Texas Exec.VP & CEO, North America AG Interactive Joseph Yanoska Austin Energy Karl Popham www.aginteractive.com Cleveland, Ohio VP of Technology www.austinenergy.com Austin,Texas CIO (Interim) Air Wisconsin Airlines Corp. Jeff Main Automatic Data Processing Inc. Michael L.Capone www.airwis.com Appleton,Wis. Managing Dir.of IT www.adp.com Roseland, N.J. Corp.VP & CIO Alaska Airlines Inc. Kris Kutchera AutoTrader.com Inc. Bob Hadley www.alaskaair.com Seattle,Wash. VP of IT www.autotrader.com Atlanta, Ga. CIO Alberto-Culver Co. Tony Bender Avanade Inc. Chris Miller www.alberto.com Melrose Park, Ill. VP & CIO www.avanade.com Seattle,Wash. CIO Alliance One International Inc. William D.Pappas Aviat Networks Inc. Richard Plane www.aointl.com Morrisville, N.C. Sr.VP & CIO www.aviatnetworks.com Morrisville, N.C. VP & CIO Allianz Life Insurance Co.of North America Tom Bauer Aviva Plc Toby Redshaw www.allianzlife.com Minneapolis, Minn. Sr.VP & CIO www.aviva.com Chicago, Ill. Global CIO The Allstate Corp. Catherine S.Brune Avnet Inc. Steve Phillips www.allstate.com Northbrook, Ill. Sr.VP & CIO www.avnet.com Phoenix, Ariz. Sr.VP & CIO Ameren Corp. Mary Heger Avon Products Inc. Donagh Herlihy www.ameren.com St.Louis, Mo. VP of Ameren Services Center & IT www.avoncompany.com New York, N.Y. Sr.VP of IT & CIO American Airlines Inc. Monte Ford AXA Equitable Life Insurance Co. Kevin E.Murray www.aa.com Fort Worth,Texas Sr.VP of IT & CIO www.axa-equitable.com New York, N.Y. Exec.VP & CIO AmeriGas Partners LP Rick Fabrizio Baker Hughes Inc. Clif Triplett www.amerigas.com King of Prussia, Pa. VP & CIO www.bakerhughes.com Houston,Texas VP & CIO AmerisourceBergen Thomas H.Murphy Baldor Electric Co. Mark Shackelford www.amerisourcebergen.com Chesterbrook,Pa. Sr.VP & CIO www.baldor.com Fort Smith, Ark. VP of IS Amgen Inc. Thomas J.Flanagan Banner Health Michael S.Warden www.amgen.com Thousand Oaks, Calif. Sr.VP & CIO www.bannerhealth.com Phoenix, Ariz. Sr.VP of IT & CIO Ansell Limited Shawn W.Knox Baptist Health Roland Garcia/Dave Dully www.ansell.com Red Bank, N.J. Sr.VP & CIO www.e-baptisthealth.com Jacksonville, Fla. Sr.VP & CIO/CTO Antares Management Solutions Ken Sidon/Paul Apostle Bartlett & Co. Matt Whalen www.antaressolutions.com Strongsville, Ohio Exec.VP & CIO/VP,Enterprise Development www.bartlett1898.com Cincinnati, Ohio IT Manager Appleton Papers Inc. Satish Dave Barton Malow Co. Phil Go www.appletonideas.com Appleton,Wis. Exec.Dir.& CIO www.bartonmalow.com Southfield, Mich. CIO Applied Industrial Technologies Inc. Lonny Lawrence Batesville Casket Co. Darryl M.Maslar www.applied.com Cleveland, Ohio VP of IT www.batesville.com Batesville, Ind. VP of Business Information Systems

Dashes indicate companies where highest-ranking IT executive not known. Region Key Northeast South Midwest West

informationweek.com Sept.13, 2010 59 InformationWeek n n o o i i g g e e COMPANY HIGHEST-RANKING IT EXECUTIVE COMPANY HIGHEST-RANKING IT EXECUTIVE R R Baylor Health Care System David S.Muntz CME Group Inc. Kevin Kometer www.baylorhealth.com Dallas,Texas Sr.VP & CIO www.cmegroup.com Chicago, Ill. Managing Director & CIO BCD Travel Hilton Sturisky Coca-Cola Enterprises Inc. Esat Sezer www.bcdtravel.com Atlanta, Ga. Sr.VP of Information & Comm.Tech. www.cokecce.com Atlanta, Ga. Sr.VP & CIO BDO USA LLP Richard Rottman Cognizant Technology Solutions Corp. Mark Greenlaw www.bdo.com Chicago, Ill. CTO www.cognizant.com Teaneck, N.J. Chief Sustainability Officer Best Western International Inc. Scott A.Gibson Colgate-Palmolive Co. Tom Greene www.bestwestern.com Phoenix, Ariz. Sr.VP of Distribution and Strat.Svcs.& CIO www.colgate.com New York, N.Y. VP & CIO Beth Israel Deaconess Medical Center John D.Halamka,MD Collabera Inc. Bala Variyam www.bidmc.org Boston, Mass. CIO www.collabera.com Morristown, N.J. CIO & Head, Collabera Labs Black Box Corp. Kim Clougherty Commercial Vehicle Group Inc. Randy Lhowe www.blackbox.com Lawrence, Pa. VP & CIO www.cvgrp.com New Albany, Ohio Corp.Dir.of IT Blackbaud Inc. Todd Lant Component Assembly Systems Inc. John Lord www.blackbaud.com Charleston, S.C. VP of IT www.componentassembly.com Pelham, N.Y. CTO Blackboard Inc. John Lambeth CompuCom Systems Inc. John Douglas www.blackboard.com Wash., D.C. VP of Technology Solutions Group www.compucom.com Dallas,Texas CIO Blount International Inc. Barry J.Brunetto Concentra Inc. Suzanne Kosub www.blount.com Portland, Ore. VP of IS www.concentra.com Addison,Texas Sr.VP & CIO BMC Software Inc. Mark Settle Continuum Health Partners Inc. Mark Moroses www.bmc.com Houston,Texas CIO www.wehealny.com New York, N.Y. Interim CIO BNY Mellon John Fiore ConvaTec Inc. William Compton www.bnymellon.com New York, N.Y. Exec.VP & CIO www.convatec.com Skillman, N.J. VP & CIO Boeing Co. John Hinshaw Convergys Corp. Jim Goetz www.boeing.com Chicago, Ill. VP of IT & CIO www.convergys.com Cincinnati, Ohio CIO Booz Allen Hamilton Inc. Frank S.Smith,III Con-way Inc. Jacquelyn Barretta www.boozallen.com McLean,Va. Sr.VP & CIO www.con-way.com San Mateo, Calif. Sr.VP & CIO Boston Medical Center Meg Aranow Corning Inc. Kevin J.McManus www.bmc.org Boston, Mass. VP & CIO www.corning.com Corning, N.Y. VP & CIO BP Plc Dana Deasy Cox Enterprises Inc. Gregory Morrison www.bp.com Houston,Texas Group CIO www.coxenterprises.com Atlanta, Ga. VP & CIO Brady Corp. Bentley Curran CoxHealth Bruce Robison www.bradycorp.com Milwaukee,Wis. VP of IT & CIO www.coxhealth.com Springfield, Mo. VP & CIO Broadview Networks Inc. Kenneth A.Shulman Coyote Logistics Michal Yariv www.broadviewnet.com Rye Brook, N.Y. CTO & CIO www.coyotelogistics.com Lake Forest, Ill. CIO Brocade Communications Systems Inc. Tim Graumann Crawford & Co. Brian S.Flynn www.brocade.com San Jose, Calif. CIO & VP of IT www.crawfordandcompany.com Atlanta, Ga. Sr.VP & Global CIO CA Technologies Stephen C.Savage Crossmark Inc. Jim Norred www.ca.com Islandia, N.Y. CIO www.crossmark.com Plano,Texas CIO Cadence Design Systems Inc. Daniel Salisbury CRST International Inc. Steve Hannah www.cadence.com San Jose, Calif. Corp.VP,Information Technology www.crst.com Cedar Rapids, Iowa VP & CIO Capgemini S.A. Josh McArthur CSG Systems International Inc. Lonnie Mahrt www.us.capgemini.com New York, N.Y. CIO, North America www.csgsystems.com Englewood, Colo. Sr.VP of Operations & CIO Capital BlueCross Kent Whiting CUNA Mutual Group Rick Roy www.capbluecross.com Harrisburg, Pa. VP of IT www.cunamutual.com Madison,Wis. Sr.VP & CIO Capital One Financial Corp. Rob Alexander Cushman & Wakefield Inc. Craig Cuyar www.capitalone.com McLean,Va. CIO www.cushmanwakefield.com New York, N.Y. Global CIO Career Education Corp. Manoj Kulkarni CVR Energy Inc. Michael Brooks www.careered.com Hoffman Estates, Ill. Sr.VP & CIO www.cvrenergy.com Sugar Land,Texas VP & CIO Caritas Christi Health Care Todd Rothenhaus,MD Cycle30 Inc. Jim Dunlap www.caritaschristi.org Boston, Mass. Sr.VP & CIO www.cycle30.com Seattle,Wash. President Carolinas HealthCare System Craig Richardville Darden Patti Reilly White www.carolinashealthcare.org Charlotte, N.C. Sr.VP & CIO www.darden.com Orlando, Fla. Sr.VP of Information Svcs.& Tech.& CIO CB Richard Ellis Group Inc. Don Goldstein Day & Zimmermann Inc. Anthony J.Bosco Jr. www.cbre.com Los Angeles, Calif. Global CIO www.dayzim.com Philadelphia, Pa. Sr.VP & CIO CDI Corp. Vince Squillacioti Deere & Co. Barry W.Schaffter www.cdicorp.com Philadelphia, Pa. Sr.VP & CIO www.johndeere.com Moline, Ill. Sr.VP,Intelligent Systems Group & CIO CDW LLC Jon Stevens Del Monte Foods Co. Marc L.Brown www.cdw.com Vernon Hills, Ill. Sr.VP & CIO and Operations www.delmonte.com San Francisco, Calif. Sr.VP Corp.Svc.Center & CIO Celestica Inc. Mary Gendron Dell Inc. Robin Johnson www.celestica.com Manchester, N.H. Sr.VP & CIO www.dell.com Round Rock,Texas CIO Centene Corp. Don Imholz Delphi Automotive LLP Timothy McCabe www.centene.com St.Louis, Mo. Exec.VP & CIO www.delphi.com Troy, Mich. VP & CIO CenterPoint Properties Scott Zimmerman Delta Air Lines Inc. Theresa Wise www.centerpoint-prop.com Oak Brook, Ill. CIO www.delta.com Atlanta, Ga. Sr.VP & CIO CentraState Healthcare System Indranil Ganguly Detroit Medical Center Michael LeRoy www.centrastate.com Freehold, N.J. VP & CIO www.dmc.org Detroit, Mich. Sr.VP & CIO CenturyLink Inc. Bill Bradley DeVry Inc. Eric Dirst www.centurylink.com Monroe, La. Sr.VP & CIO www.devryinc.com Downers Grove, Ill. Sr.VP & CIO CGI Group Inc. Luc Pinard/Guy Brosseau Digital River Inc. Ted Hoy www.cgi.com Fairfax,Va. Exec.VP & Chief Tech.& Qual.Officer/VP & CIO www.digitalriver.com Minneapolis, Minn Sr.VP of Product & Technology CH2M Hill Bill Dehn Discover Financial Services Glenn Schneider www.ch2m.com Englewood, Colo. CIO www.discoverfinancial.com Riverwoods, Ill. Sr.VP & CIO Charles Schwab & Co.Inc. Brad Peterson Discovery Communications Inc. David Kline www.schwab.com San Francisco, Calif. CIO www.discoverycommunications.com Silver Spring, Md. Exec.VP & CIO The Charmer Sunbelt Group Paul Fipps Diversey Holdings Inc. Brent Hoag www.charmer-sunbelt.com New York, N.Y. Corp.VP of Business Services & CIO www.diversey.com Sturtevant,Wis. VP & CIO Children’s Hospital & Medical Center George Reynolds,MD Do it Best Corp. Mike Altendorf www.childrensomaha.org Omaha, Neb. Chief Med.Informatics Officer;Acting VP & CIO www.doitbestcorp.com Fort Wayne, Ind. VP of IT Children’s Hospital of Philadelphia Bryan A.Wolf,MD Doshi Diagnostic Imaging Services Tariq Rahim Shaikh/Anish Berry www.chop.edu Philadelphia, Pa. Sr.VP & CIO www.doshidiagnostic.com Hicksville, N.Y. COO & CIO/President Children’s Medical Center Dallas Pamela Arora Dr Pepper Snapple Group Inc. Virginia Guthrie www.childrens.com Dallas,Texas VP & CIO www.drpeppersnapplegroup.com Plano,Texas Sr.VP & CIO Chiquita Brands International Inc. — DST Output Frank Delfer www.chiquitabrands.com Cincinnati, Ohio www.dstoutput.com Kansas City, Mo. Exec.VP of Technology & CTO Christus Health George Conklin DTE Energy Co. Lynne Ellyn www.christushealth.org Irving,Texas Sr.VP & CIO www.dteenergy.com Detroit, Mich. Sr.VP & CIO CHS Inc. Beth Nordin Dunham & Smith Agencies Mike Skinner www.chsinc.com Inver Grove Heights, Minn. VP of IT www.dunhamandsmith.com St.Louis, Mo. CIO The Chubb Corp. James P.Knight Dunkin’Brands Inc. Daniel J.Sheehan www.chubb.com Warren, N.J. Exec.VP & Global CIO www.dunkinbrands.com Canton, Mass. Sr.VP & CIO Cigna Corp. James Nastri Dynegy Inc. Biren Kumar www.cigna.com Philadelphia, Pa. VP of eBusiness www.dynegy.com Houston,Texas Sr.VP & CIO Cincinnati Children’s Hospital Medical Center Marianne F.James E.&J.Gallo Winery Kent Kushar www.cincinnatichildrens.org Cincinnati, Ohio Sr.VP & CIO www.gallo.com Modesto, Calif. VP & CIO Cincinnati Financial Corp. John Kellington Eaton Corp. William W.Blausey Jr. www.cinfin.com Fairfield, Ohio Sr.VP & CIO www.eaton.com Cleveland, Ohio Sr.VP & CIO Citi Private Bank Indy Reddy Eli Lilly & Co. Michael C.Heim www.citiprivatebank.com New York, N.Y. Managing Dir.& CTO www.lilly.com Indianapolis, Ind. Sr.VP & CIO Clayton Homes Inc. Ralph Warchol EMC Corp. Sanjay Mirchandani www.claytonhomes.com Maryville,Tenn. VP & CIO www.emc.com Hopkinton, Mass. Sr.VP & CIO Region Key Northeast South Midwest West Midwest • Spend 2.5% of revenue on IT, on average • 52% expect 2010 IT spending to exceed 2009 • 44% are making global support and development part of most IT workers’ regular jobs

West • Spend 3.1% of revenue on IT, on average • 61% expect 2010 IT spending to exceed 2009 • 53% are making global support and development part of most IT workers’ regular jobs

Emcor Group Inc. Joseph A.Puglisi www.emcorgroup.com Norwalk, Conn. VP & CIO Emerson Kathy McElligott www.emerson.com St.Louis, Mo. VP & CIO Emkay Inc. Andrew Griffith www.emkay.com Itasca, Ill. VP of IT Emory Healthcare Dee Cantrell www.emoryhealthcare.org Atlanta, Ga. CIO Endurance Specialty Holdings Ltd. Tom Terry www.endurance.bm New York, N.Y. Exec.VP & CIO Energen Corp. Lynn Lovelady www.energen.com Birmingham, Ala. General Manager, IT Entergy Corp. Jill Israel www.entergy.com New Orleans, La. VP & CIO Equifax Inc. David C.Webb www.equifax.com Atlanta, Ga. CIO Exelon Corp. Daniel C.Hill Geisinger Health System Frank Richards www.exeloncorp.com Chicago, Ill. Sr.VP & CIO www.geisinger.org Danville, Pa. CIO Express Scripts Inc. Gary Wimberly General Electric Co. John Seral www.express-scripts.com St.Louis, Mo. Sr.VP & CIO www.ge.com Fairfield, Conn. VP & CIO, GE Energy Fair Isaac Corp. Christopher Rence General Motors Co. Terry Kline www.fico.com Minneapolis, Minn. VP & Chief Info.& Bus.Transformation Officer www.gm.com Detroit, Mich. VP of IT & CIO FBL Financial Group Inc. Doug Gumm Genuine Parts Co. Charles A.Chesnutt www.fblfinancial.com West Des Moines, Iowa VP of IT www.genpt.com Atlanta, Ga. Sr.VP of IT & Process Improvement FedEx Corp. Robert B.Carter Global Crossing Ltd. Anthony D.Christie www.fedex.com Memphis,Tenn. Exec.VP & CIO www.globalcrossing.com Florham Park, N.J. CTO & CIO FFE Transportation Inc. Nick Cook Global Integrated Logistics Bassam Fawaz www.ffeinc.com Dallas,Texas VP & CIO www.agilitylogistics.com Irvine, Calif. CIO Fidelity National Information Services Inc. Brian Hurdis Goodwin Procter LLP Andrew Kawa www.fisglobal.com Jacksonville, Fla. Exec.VP,Technology Services www.goodwinprocter.com Boston, Mass. Sr.IT Manager Fifth Third Bancorp. Joseph Robinson Grange Mutual Casualty Co. Michael C.Fergang www.53.com Cincinnati, Ohio Exec.VP & CIO www.grangeinsurance.com Columbus, Ohio VP & CIO Financial Industry Regulatory Authority Inc. Marty Colburn Graybar Electric Company Inc. Scott Clifford www.finra.org Wash., D.C. Exec.VP & CTO www.graybar.com St.Louis, Mo. VP & CIO First Data Corp. Kevin Kern GreenStone Farm Credit Services Brook E.Walsh www.firstdata.com Atlanta, Ga. Exec.VP & CTO www.greenstonefcs.com East Lansing, Mich. Sr.VP & CIO First Horizon National Corp. Bruce Livesay Grinnell Mutual Reinsurance Co. Dennis H.Mehmen www.firsthorizon.com Memphis,Tenn. Exec.VP & CIO www.grinnellmutual.com Grinnell, Iowa CIO & VP of Business Information Services Fiserv Inc. Maryann Goebel Group Health Coop.of South Central Wis. Galen M.Metz www.fiserv.com Brookfield,Wis. Exec.VP & CIO www.ghcscw.com Madison,Wis. CIO & Dir.of IS Flextronics International Ltd. David Smoley Growmark Inc. Tim Piper www.flextronics.com San Jose, Calif. Sr.VP & CIO www.growmark.com Bloomington, Ill. Exec.Dir.of IT & CIO Foley & Lardner LLP Doug Caddell Gwinnett Hospital System Inc. Ed Brown www.foley.com Milwaukee,Wis. CIO www.gwinnettmedicalcenter.org Lawrenceville,Ga. Sr.VP & CIO Freeman Decorating Services Inc. Richard Maranville GXS Inc. Karl Salnoske www.freemanco.com Dallas,Texas CIO www.gxs.com Gaithersburg, Md. Exec.VP & CIO

Freescale Semiconductor Inc. Sam Coursen Harleysville Group Inc. Jon Griggs r e t www.freescale.com Austin,Texas VP & CIO www.harleysvillegroup.com Harleysville, Pa. VP & CIO t E

Freightquote.com Shawn McCarrick The Harry Fox Agency Inc. Louis Trebino a y

www.freightquote.com Lenexa, Kan. COO & CIO www.harryfox.com New York, N.Y. Sr.VP & CIO R Region Key Northeast South Midwest West InformationWeek

KNOW YOUR NEIGHBORS California tops our list again this year, with 59 companies (down from 71 last year). New York Northeast is No. 2 with 43, and Illinois and Texas are close behind with 40 each. But innovators are • Spend 3.1% of revenue on IT, on average everywhere. Georgia (30), Pennsylvania (30), Ohio (28), New Jersey (23), Missouri (20), and • 58% expect 2010 IT spending to exceed 2009 Massachusetts (18) round out the top 10 states in the InformationWeek 500 ranking. • 56% are making global support and development part of most IT workers’ regular jobs GET ALL THE DATA There’s so much more to find out about the InformationWeek 500 that won’t fit in our pages. The full report is free for a limited time at informationweek.com/analytics/2010/500

Hologic Inc. David Rudzinsky www.hologic.com Bedford, Mass. Sr.VP of IS & CIO Horizon Blue Cross Blue Shield of New Jersey Mark Barnard www.horizonblue.com Newark, N.J. Sr.VP of IT & CIO Hovnanian Enterprises Inc. Nicholas Colisto www.khov.com Red Bank, N.J. VP & CIO Hub Group Inc. Dennis Polsen www.hubgroup.com Downers Grove, Ill. Exec.VP of IS Hyatt Hotels Corp. Mike Blake www.hyatt.com Chicago, Ill. CIO Indiana Farm Bureau Insurance Greg Clancy South www.infarmbureau.com Indianapolis, Ind. Sr.VP & CIO Infor Global Solutions Inc. Soma Somasundaram www.infor.com Alpharetta, Ga. Sr.VP,Global Product Development • Spend 2.3% of revenue on IT, Ingram Micro Inc. Mario Leone on average www.ingrammicro.com Santa Ana, Calif. Exec.VP & CIO InnerWorkings Inc. Neil P.Graver • 59% expect 2010 IT spending www.inwk.com Chicago, Ill. Sr.VP of Technology Inova Health System Geoff Brown to exceed 2009 www.inova.org Falls Church,Va. Sr.VP & CIO, Information Technology Intel Corp. Diane Bryant • 46% are making global www.intel.com Santa Clara, Calif. VP & CIO Intelsat Richard Marlow/Adam Levy support and development www.intelsat.com Wash., D.C. Sr.Dir.of Satellite Control Sys./VP of IS part of most IT workers’ InterContinental Hotels Group (IHG) Tom Conophy www.ihg.com Atlanta, Ga. Exec.VP & CIO regular jobs IntercontinentalExchange Inc. Edwin Marcial www.theice.com Atlanta, Ga. Sr.VP & CTO Intergraph Corp. Bill Johnson www.intergraph.com Huntsville, Ala. VP of Global IT International Business Machines Corp. Patrick Toole www.ibm.com Armonk, N.Y. VP & CIO The Hartford Financial Services Group Inc. Brian O’Connell Intersections Inc. George K.(Chip) Tsantes www.thehartford.com Hartford, Conn. Sr.VP & CIO www.intersections.com Chantilly,Va. Exec.VP & CTO H.B.Fuller Co. Barry Snyder Intuit Inc. Ginny Lee www.hbfuller.com St Paul, Minn. VP & CTO www.intuit.com Mountain View, Calif. Sr.VP & CIO HCA Inc. Noel Brown Williams inVentiv Health Inc. Tony Jerig www.hcahealthcare.com Nashville,Tenn. Sr.VP & CIO www.inventivhealth.com Somerset, N.J. CIO HD Supply Inc. Michele Markham Iowa Health System Joy Grosser www.hdsupply.com Atlanta, Ga. Sr.VP & CIO www.ihs.org Des Moines, Iowa VP & CIO Health Care Service Corp. Brian Hedberg iQor Inc. Vikas Kapoor www.hcsc.com Chicago, Ill. CIO www.iqor.com New York, N.Y. President & CEO Healthways Inc. Scott Blanchette Iron Mountain Inc. Bill Brown www.healthways.com Franklin,Tenn. Sr.VP & CIO www.ironmountain.com Boston, Mass. Sr.VP & CIO Heartland Health Helen V.Thompson j2 Global Communications Inc. Alan Alters/Vince Niedzielski www.heartland-health.com St.Joseph, Mo. CIO www.j2global.com Los Angeles, Calif. VP Network Ops./VP of Engineering Heartland Payment Systems Inc. Kris Herrin Jack in the Box Inc. Debra Jensen www.heartlandpaymentsystems.com Princeton,N.J. CTO www.jackinthebox.com San Diego, Calif. VP & CIO Heidelberg USA Inc. Doug Robbins/Howard Hutchings Jarden Consumer Solutions Edward Janowsky www.us.heidelberg.com Kennesaw, Ga. VP Info.Services, U.S./Global CIO www.jardencs.com Boca Raton, Fla. VP of IT & CIO Herbalife Ltd. Mark Schissel J.B.Hunt Transport Services Inc. Kay J.Palmer www.herbalife.com Los Angeles, Calif. CIO www.jbhunt.com Lowell, Ark. Exec.VP & CIO Hewitt Associates Inc. David Baruch J.C.Penney Company Inc. Tom Nealon www.hewitt.com Lincolnshire, Ill. CIO www.jcpenney.com Plano,Texas Exec.VP & CIO Hewlett-Packard Co. Randy Mott JetBlue Airways Corp. Joseph Eng www.hp.com Palo Alto, Calif. Exec.VP & CIO www.jetblue.com Forest Hills, N.Y. Exec.VP & CIO Highmark Inc. Tom Tabor Jones Apparel Group Inc. Norm Veit www.highmark.com Pittsburgh, Pa. Sr.VP & CIO www.jonesapparel.com Bristol, Pa. Exec.VP of MIS Hilton Worldwide Robert Webb Juniper Networks Inc. Michele Goins www.hilton.com McLean,Va. CIO www.juniper.net Sunnyvale, Calif. CIO Hitachi Data Systems Corp. Rex Carter K&L Gates LLP Steven W.Agnoli www.hds.com Santa Clara, Calif. Sr.VP & CIO www.klgates.com Pittsburgh, Pa. CIO Hitachi Global Storage Technologies Craig Haught Kansas City Power & Light Co. Charles H.Tickles www.hitachigst.com San Jose, Calif. Chief Info.& Environmental Strategy Officer www.kcpl.com Kansas City, Mo. VP of IT Hogan Lovells U.S.LLP William Gregory Keane Inc. Tom Gary www.hoganlovells.com Wash., D.C. CIO www.keane.com Boston, Mass. CIO InformationWeek n n o o i i g g e e COMPANY HIGHEST-RANKING IT EXECUTIVE COMPANY HIGHEST-RANKING IT EXECUTIVE R R Kellwood Co. Linda Kinder NetApp Inc. Marina Levinson www.kellwood.com Chesterfield, Mo. VP & CIO www.netapp.com Sunnyvale, Calif. Sr.VP & CIO Ketchum Inc. Andy Roach NetScout Systems Inc. Ken Boyd www.ketchum.com New York, N.Y. Partner & CIO www.netscout.com Westford, Mass. Sr.VP Services & CIO Kimpton Hotels & Restaurants Kris Singleton Newell Rubbermaid Inc. Gordon Steele www.kimptonhotels.com San Francisco, Calif. CIO & VP of Technology www.newellrubbermaid.com Atlanta, Ga. Sr.VP Program Management Office & CIO Kindred Healthcare Inc. Rick Chapman Newmark Knight Frank Deepak Lakhani www.kindredhealthcare.com Louisville, Ky. Exec.VP,CIO & CAO www.newmarkkf.com New York, N.Y. Dir.of Applications Development Knight Capital Group Inc. Steven J.Sadoff Newport Corp. Greg Reischlein www.knight.com Jersey City, N.J. Exec.VP & CIO www.newport.com Irvine, Calif. CIO Knight Transportation Inc. Cory Staheli The New York Times Co. Joseph Seibert www.knighttrans.com Phoenix, Ariz. VP of IS www.nytco.com New York, N.Y. Sr.VP & CIO Krueger International Inc. Vicki Petit North Shore-Long Island Jewish Health System John Bosco www.ki.com Green Bay,Wis. VP of IS www.northshorelij.com Great Neck, N.Y. VP & CIO Lamar Advertising Co. Ed Nettles Northern Trust Corp. Peter Magrini/Jim Scholefield www.lamar.com Baton Rouge, La. VP & Dir.of IT www.northerntrust.com Chicago,Ill. Exec.VP,Tech.Apps./Sr.VP,Tech.Infra.& Ops. Landstar System Inc. Larry S.Thomas Northrop Grumman Corp. Bernard P.McVey www.landstar.com Jacksonville, Fla. VP & CIO www.northropgrumman.com Los Angeles, Calif. VP & CIO Leggett & Platt Inc. Michael Blinzler Norton Healthcare Inc. Joseph DeVenuto www.leggett.com Carthage, Mo. VP of IT www.nortonhealthcare.com Louisville, Ky. VP of IS & CIO Lehigh Valley Health Network Harry F.Lukens Nygard International Partnership Len Nicolas www.lvhn.org Allentown, Pa. Sr.VP & CIO www.nygard.com New York, N.Y. COO Lifespan Corp. Carole Cotter Occidental Petroleum Corp. Donald L.Moore www.lifespan.org Providence, R.I. Sr.VP & CIO www.oxy.com Los Angeles, Calif. VP & CIO Littelfuse Inc. Ed Earl Odyssey HealthCare Inc. James Zoccoli www.littelfuse.com Chicago, Ill. CIO www.odsyhealth.com Dallas,Texas VP of IT Lockheed Martin Corp. Sondra Barbour Ogilvy & Mather Worldwide Yuri Aguiar www.lockheedmartin.com Bethesda, Md. VP of Enterprise Business Services & CIO www.ogilvy.com New York, N.Y. Sr.Partner & CTO Lockton Inc. David Robinson OhioHealth Michael Krouse www.lockton.com Kansas City, Mo. CIO www.ohiohealth.com Columbus, Ohio System VP & CIO Lowe’s Companies Inc. Steven M.Stone Old Dominion Freight Line Inc. Ken Erdner www.lowes.com Mooresville, N.C. Sr.VP & CIO www.odfl.com Thomasville, N.C. VP of IT Lubrizol Corp. Patrick H.Saunier OneAmerica Financial Partners Inc. Gene Berry www.lubrizol.com Wickliffe, Ohio VP of IS & Business Processes www.oneamerica.com Indianapolis, Ind. VP of IT & CIO Mansfield Oil Co. Doug Haugh Orbital Sciences Corp. Ken Bell www.mansfieldoil.com Gainsville, Ga. Exec.VP & CIO www.orbital.com Dulles,Va. Sr.VP & CIO Marcus & Millichap Real Estate Services Inc. Rick Peltz Owens & Minor Inc. Rick Mears www.marcusmillichap.com Encino, Calif. Sr.VP & CIO www.owens-minor.com Mechanicsville,Va. Sr.VP & CIO Maritz Gil Hoffman Owens Corning David Johns www.maritz.com Fenton, Mo. Sr.VP & CIO www.owenscorning.com Toledo, Ohio Sr.VP,CIO, & Chief Shared Services Officer Marriott International Inc. Carl Wilson Paccar Inc Kyle Quinn www.marriott.com Bethesda, Md. Exec.VP & CIO www.paccar.com Bellevue,Wash. VP & CIO Marsh Inc. Jim P.Lee Pacific Gas & Electric Co. Patricia Lawicki www.mmc.com New York, N.Y. CIO www.pge.com San Francisco, Calif. Sr.VP & CIO Martin Marietta Materials Inc. Chuck Musciano Pacific Northwest National Laboratory Jerry Johnson www.martinmarietta.com Raleigh, N.C. VP & CIO www.pnl.gov Richland,Wash. CIO Mayer Brown LLP Howard Niden Parker Hannifin Corp. William G.Eline www.mayerbrown.com Chicago, Ill. CIO www.parker.com Cleveland, Ohio VP & CIO McAfee Inc. Mark Tonnesen Parkland Health & Hospital System Jack Kowitt www.mcafee.com Santa Clara, Calif. Sr.VP & CIO www.parklandhospital.com Dallas,Texas Sr.VP & CIO McCann Worldgroup Gregory M.Smith Parsons Scott Carl www.mccann.com New York, N.Y. CIO www.parsons.com Pasadena, Calif. CIO McCormick & Co.Inc. Jerry Wolfe Partners HealthCare System Inc. Gary Gottleib,MD www.mccormick.com Sparks, Md. VP of Supply Chain Strategy & CIO www.partners.org Boston, Mass. President & CEO McCoy Corp. Dennis Strong The Pasha Group David Beckerman www.mccoys.com San Marcos,Texas Sr.VP & CIO www.pashagroup.com Corte Madera, Calif. VP of IT Services McGraw-Hill Cos.Inc. Bruce Marcus Paychex Inc. Michael Gioja www.mcgraw-hill.com New York, N.Y. Exec.VP & CIO www.paychex.com Rochester, N.Y. VP of Product Mgmt.& Development McKesson Corp. Randall N.Spratt PC Connection Inc. John Polizzi www.mckesson.com San Francisco, Calif. Exec.VP,CTO & CIO www.pcconnection.com Merrimack, N.H. Sr.VP & CIO Medline Industries Inc. Mike Penny Pegasus Solutions Inc. Mike Kistner www.medline.com Mundelein, Ill. CIO www.pegs.com Dallas,Texas CEO Medtronic Inc. Michael Hedges Pegasystems Inc. Craig Dynes www.medtronic.com Minneapolis, Minn. CIO www.pega.com Cambridge, Mass. Sr.VP & CFO Merck J.Chris Scalet Pennsylvania Real Estate Investment Trust Helane Stein www.merck.com Whitehouse Station, N.J. Exec.VP Global Services & CIO www.preit.com Philadelphia, Pa. Dir.of IT Mercury Insurance Group Allan Lubitz Penske Truck Leasing Co.LP William L.Stobbart www.mercuryinsurance.com Los Angeles, Calif. Sr.VP & CIO www.gopenske.com Reading, Pa. Sr.VP of IT Microsoft Corp. Tony Scott Pfizer Inc. Jeffrey Keisling www.microsoft.com Redmond,Wash. Corp.VP & CIO www.pfizer.com New York, N.Y. Sr.VP & CIO Mirant Corp. Bob McClure Pharmaceutical Product Development Inc. Mike Wilkinson www.mirant.com Atlanta, Ga. VP & CIO www.ppdi.com Wilmington, N.C. Exec.VP & CIO Mitsubishi Motors North America Inc. Keizo Fuchita PHH Arval Kim Hearn www.mitsubishicars.com Cypress, Calif. Sr.Exec.VP & CIO www.phharval.com Sparks, Md. VP & CIO Mohawk Industries Inc. Don Riley Pioneer Investment Management Peter Noll www.mohawkind.com Calhoun, Ga. CIO & Sr.VP Logistics www.pioneerinvestments.com Boston, Mass. Global CTO Monsanto Co. Shirley Cunningham Pitt Ohio Express LLC Scott Sullivan www.monsanto.com St.Louis, Mo. CIO www.pittohio.com Pittsburgh, Pa. CIO & CFO Monster Worldwide Darko Dejanovic PLS Logistics Services Mark Ohlund www.monster.com New York, NY Exec.VP & Global CIO & Head of Product www.plslogistics.com Cranberry, Pa. VP,Technology Strategy Motor Coach Industries International Inc. Gina Papworth PNC Financial Services Group Inc. Anuj Dhanda www.mcicoach.com Schaumburg, Ill. Exec.Director of IT www.pnc.com Pittsburgh, Pa. Exec.VP & CIO Movado Group Inc. Frank A.Morelli Polycom Inc. Glenn Noga www.movadogroup.com Paramus, N.J. Sr.VP Global Business Processes & CIO www.polycom.com Pleasanton, Calif. CIO Nalco Co. Stewart McCutcheon Poudre Valley Health System Russell Branzell www.nalco.com Naperville, Ill. CIO www.pvhs.org Fort Collins, Colo. VP & CIO National Government Services Inc. Tim Masheck PPG Industries Werner Baer www.ngsmedicare.com Indianapolis, Ind. CIO www.ppg.com Pittsburgh, Pa. VP of IT National Oilwell Varco Distribution Services Noel Connolly PRC LLC Sean Minter www.nov.com Houston,Texas Sr.VP of Supply Chain Management www.prcnet.com Plantation, Fla. CIO & COO Nationwide Children’s Hospital Denise Zabawski Preferred Care Partners Inc. Doug Cormany www.nationwidechildrens.org Columbus, Ohio CIO & VP IS www.mypreferredcare.com Miami, Fla. Sr.VP & CIO Nationwide Mutual Insurance Co. Srinivas Koushik Premier Inc. Joseph M.Pleasant/Keith J.Figlioli www.nationwide.com Columbus, Ohio Sr.VP & CTO www.premierinc.com Charlotte,N.C. Sr.VP & CIO/Sr.VP of Healthcare Informatics Navy Federal Credit Union Jerry Hermes Premiere Global Services Inc. David M.Guthrie www.navyfcu.org Vienna,Va. CIO www.pgi.com Atlanta, Ga. CTO NCR Corp. William VanCuren Presidio Networked Solutions Inc. Dave Hart www.ncr.com Duluth, Ga. VP & CIO www.presidio.com Greenbelt, Md. Exec.VP & CTO Nebraska Furniture Mart Inc. David C.Bash PricewaterhouseCoopers LLP Stuart Fulton www.nfm.com Omaha, Neb. Dir.of IT & CIO www.pwc.com New York, N.Y. U.S.CIO Region Key Northeast South Midwest West InformationWeek n n o o i i g g e e COMPANY HIGHEST-RANKING IT EXECUTIVE COMPANY HIGHEST-RANKING IT EXECUTIVE R R Principal Financial Group Inc. Gary Scholten Sony Electronics Inc. Drew Martin www.principal.com Des Moines, Iowa Sr.VP & CIO www.sony.com San Diego, Calif. Sr.VP & CIO Procter & Gamble Co. Filippo Passerini South Shore Hospital Inc. E.Delroy Dixon II www.pg.com Cincinnati, Ohio President, Global Business Services & CIO www.southshorehospital.org South Weymouth,Mass. VP & CIO Procurestaff Technologies Robert Brooks Southern California Edison Mahvash Yazdi www.procurestaff.com New York, N.Y. VP of Technology www.sce.com Rosemead, Calif. Sr.VP Business Integration & CIO Product Partners LLC Steven Winshel Southern Co. Becky Blalock www.beachbody.com Santa Monica, Calif. CIO www.southerncompany.com Atlanta, Ga. Sr.VP & CIO The Progressive Group of Insurance Cos. Raymond Voelker Southern Union Co. Steve Hotte www.progressive.com Mayfield Village, Ohio CIO www.sug.com Houston,Texas Sr.VP of IT Progressive Medical Inc. Angelo Mazzocco Southwire Co. Sheryl Fikse www.progressive-medical.com Westerville, Ohio CIO www.southwire.com Carrollton, Ga. Sr.VP & CIO of IT ProQuest LLC Bipin Patel Sparrow Health System Thomas Bres www.proquest.com Ann Arbor, Mich. CIO www.sparrow.org Lansing, Mich. VP & CIO Provena Health John Lynch/John Romeo Split Cooperative LLC Greg Smith www.provena.org Mokena, Ill. CIO/System Mgr., Networking Services www.splitcoop.com New York, N.Y. Exec.VP & CIO Prudential Financial Inc. Barbara Koster Sprint Nextel Corp. Peter Campbell www.prudential.com Newark, N.J. CIO www.sprint.com Overland Park, Kan. Sr.VP of IT PSC LLC Pamela Rucker SPX Corp. Kevin Eamigh www.pscnow.com Houston,Texas VP of IT www.spx.com Charlotte, N.C. CIO Pulte Group Inc. Jerry Batt The Standard Register Co. Joanne Cummins www.pultegroup.com Bloomfield Hills, Mich. VP & CIO www.standardregister.com Dayton, Ohio CIO Quintiles Bill Deam Staples Inc. Brian Light www.quintiles.com Durham, N.C. Exec.VP & CIO, Global IT www.staples.com Framingham, Mass. Exec.VP & CIO R.L.Polk & Co. Kevin Vasconi Starz Entertainment LLC Ray Milius www.polk.com Southfield, Mich. Sr.VP & CIO www.starz.com Englewood, Colo. Sr.VP of Programming Operations & IT R.R.Donnelley & Sons Co. Kenneth E.O’Brien State Street Corp. Christopher Perretta www.rrdonnelley.com Chicago, Ill. Exec.VP & CIO www.statestreet.com Boston, Mass. Exec.VP & CIO Rabobank N.A. Erwin Martinez Stein Mart Inc. Andrew Black www.rabobankamerica.com El Centro, Calif. CIO www.steinmart.com Jacksonville, Fla. CIO & VP of IT Rackspace Hosting Inc. Steve Mills Steris Corp. Mario Shahidian www.rackspace.com San Antonio,Texas CIO www.steris.com Mentor, Ohio VP & CIO Raven Industries Inc. Cal Fickbohm Stewart Information Services Corp. Murshid Khan www.ravenind.com Sioux Falls, S.D. Dir.of IT www.stewart.com Houston,Texas Sr.VP & CIO Raytheon Co. Rebecca R.Rhoads SunGard Availability Services LP Donald H.Hopkins www.raytheon.com Waltham, Mass. VP & CIO www.sungardas.com Wayne, Pa. VP & CIO Recreational Equipment Inc. Bill Baumann SunGard Higher Education Inc. Darren Wesemann www.rei.com Kent,Wash. VP of IT www.sungardhe.com Malvern, Pa. CTO & Chief Product Officer Red Hat Inc. Lee Congdon Sutherland Global Services Inc. Deepak Batheja www.redhat.com Raleigh, N.C. CIO www.sutherlandglobal.com Pittsford, N.Y. CTO RedPrairie Corp. Greg Marr Swinerton Inc. Charlene Atkinson www.redprairie.com Waukesha,Wis. VP,IT & Facility Operations www.swinerton.com San Francisco, Calif. Dir.of Information Management & VP Regions Financial Corp. Cindy Rogers Sybase Inc. Jim Swartz www.regions.com Birmingham, Ala. Sr.Exec.VP,Operations & Technology Division www.sybase.com Dublin, Calif. VP & CIO Rent-A-Center Inc. Tony Fuller Synopsys Inc. Debra Martucci www.rentacenter.com Plano,Texas Sr.VP of IT & CIO www.synopsys.com Mountain View, Calif. CIO & VP of IT Republic Services Inc. William G.Halnon Synovus Financial Corp. Lee Lee James www.republicservices.com Phoenix, Ariz. Sr.VP & CIO www.synovus.com Columbus, Ga. Vice-Chairman, CIO & Chief People Officer ResMed Michael Zill Taco Bell Corp. Douglas Wines www.resmed.com San Diego, Calif. CIO www.tacobell.com Irvine, Calif. Director, IT Services Roche Diagnostics Corp. Kurt Seiler Tech Data Corp. John Tonnison www.roche-diagnostics.us Indianapolis, Ind. VP,North America Informatics www.techdata.com Clearwater, Fla. Exec.VP & CIO Ross Stores Inc. Michael K.Kobayashi TECO Energy Inc. Karen M.Mincey www.rossstores.com Pleasanton, Calif. Exec.VP Supply Chain, Allocation & CIO www.tecoenergy.com Tampa, Fla. VP of IT & CIO Royal Caribbean Cruises Ltd. Bill Martin Tenet Healthcare Corp. Stephen F.Brown www.royalcaribbean.com Miami, Fla. VP & CIO www.tenethealth.com Dallas,Texas Exec.VP & CIO Ryder System Inc. Kevin Bott Teradata Corp. Diana Bolden www.ryder.com Miami, Fla. Sr.VP & CIO www.teradata.com Miamisburg, Ohio CIO Sabre Holdings Corp. Barry Vandevier Terremark Worldwide Inc. Leoncio Casusol www.sabre-holdings.com Southlake,Texas CIO www.terremark.com Miami, Fla. Sr.VP of Planning & IS Safe Auto Insurance Co. Jeffery L.Fields Tessco Technologies Inc. Doug Rein www.safeauto.com Columbus, Ohio Sr.VP & CIO www.tessco.com Hunt Valley, Md. Sr.VP,Performance Systems & Operations Saia Inc. Mark Robinson Teva Pharmaceuticals U.S.A.Inc. Jimmy Z.Wang www.saia.com Johns Creek, Ga. VP & CIO www.tevausa.com North Wales, Pa. VP & CIO Saks Inc. Michael Rodgers Texas Health Resources Inc. Edward Marx www.saksincorporated.com New York, N.Y. Exec.VP of Service Operations & CIO www.texashealth.org Arlington,Texas Sr.VP & CIO Salesforce.com Inc. Kirsten Wolberg Thermo Fisher Scientific Inc. Ina Kamenz www.salesforce.com San Francisco, Calif. CIO www.thermofisher.com Waltham, Mass. VP & CIO Salvation Army U.S.A.Western Territory Clarence White TIAA-CREF Marvin Adams www.salvationarmy.usawest.org Long Beach,Calif. CIO & IT Secretary www.tiaa-cref.org New York, N.Y. Exec.VP,Technology and Operations Sanford Health Arlyn Broekhuis T-Mobile USA Inc. Cole Brodman www.sanfordhealth.org Sioux Falls, S.D. VP & CIO www.t-mobile.com Bellevue,Wash. Chief Technology & Innovation Officer Sanofi-aventis U.S.LLC Ruth Thorpe/Dina Di Maria Tower Automotive LLC Orrie Jones www.sanofi-aventis.us Bridgewater, N.J. VP & CIO/AVP IS www.towerautomotive.com Livonia, Mich. VP & CIO SAS Suzanne Gordon Transatlantic Holdings Inc. George Di Martino www.sas.com Cary, N.C. VP of IT & CIO www.transre.com New York, N.Y. Sr.VP & CIO Savvis Inc. Bryan Doerr Transitions Optical Inc. Maria Zabetakis www.savvis.net St.Louis, Mo. CTO www.transitions.com Pinellas Park, Fla. Americas IT Director Schneider National Inc. Judith Lemke Transplace Vincent Biddlecombe www.schneider.com Green Bay,Wis. Exec.VP & CIO www.transplace.com Dallas,Texas CTO Schuff International Inc. Ron Huisinga TransUnion LLC Ian Drury/Paul Fritz www.schuff.com Phoenix, Ariz. CIO www.transunion.com Chicago, Ill. CIO U.S.Info.Svcs./Exec.VP U.S.Tech.Ops. Scottrade Inc. Ian Patterson Travelport Ltd. Sue Powers www.scottrade.com St.Louis, Mo. CIO www.travelport.com Parsippany, N.J. CEO IT Services & Software Sealed Air Corp. Warren Kudman The TriZetto Group Inc. Alan Cullop www.sealedair.com Elmwood Park, N.J. VP & CIO www.trizetto.com Newport Beach, Calif. Sr.VP & CIO Securian Financial Group Inc. Jean Delaney Nelson T-Systems David Andrews www.securian.com St.Paul, Minn. Sr.VP & CIO www.t-systemsus.com Phoenix, Ariz. VP of ICT Operations Sharp HealthCare William Spooner TTX Co. Bruce G.Schinelli www.sharp.com San Diego, Calif. Sr.VP & CIO www.ttx.com Chicago, Ill. CIO & VP of IT Shaw Industries Group Inc. Roddy McKaig Tuthill Corp. Chad Gabriel www.shawfloors.com Dalton, Ga. VP & CIO www.tuthill.com Burr Ridge, Ill. Director, Applications Development The Sherwin-Williams Co. Thomas Lucas TXU Energy Retail Co.LLC Kevin Chase www.sherwin.com Cleveland, Ohio CIO www.txu.com Dallas,Texas CIO Siemens Healthcare John Glaser Tyson Foods Inc. Gary D.Cooper www.medical.siemens.com/us Malvern, Pa. CEO www.tyson.com Springdale, Ark. Sr.VP & CIO Sirva Inc. Erik Keller UMC Health System Bill Eubanks www.sirva.com Westmont, Ill. CIO www.umchealthsystem.com Lubbock,Texas Sr.VP & CIO Solutia Inc. Rahul Goturi Unifi Inc. Mark Sidden www.solutia.com St.Louis, Mo. VP & CIO www.unifi.com Greensboro, N.C. CIO Region Key Northeast South Midwest West InformationWeek n n o o i i g g e COMPANY HIGHEST-RANKING IT EXECUTIVE e COMPANY HIGHEST-RANKING IT EXECUTIVE R R UniGroup Inc. Randall C.Poppell Wal-Mart Stores Inc. Rollin Ford www.unigroupinc.com Fenton, Mo. Sr.VP of Strategic Planning & CIO www.walmart.com Bentonville, Ark. Exec.VP & CIO United Stationers Supply Co. S.David Bent Waste Management Inc. Puneet Bhasin www.unitedstationers.com Deerfield, Ill. Sr.VP of eBusiness Services & Corp.CIO www.wm.com Houston,Texas Sr.VP & CIO University of Arkansas for Medical Sciences Rhonda Jorden Webcor Builders LP Gregg Davis www.uams.edu Little Rock, Ark. Interim CIO www.webcor.com San Mateo, Calif. Sr.VP & CIO University of Pennsylvania Health System Michael Restuccia Websense Inc. John McCormack www.pennmedicine.org Philadelphia, Pa. VP & CIO www.websense.com San Diego, Calif. President University of Pittsburgh Medical Center (UPMC) Daniel S.Drawbaugh WellPoint Inc. Lori Beer www.upmc.com Pittsburgh, Pa. Sr.VP & CIO www.wellpoint.com Indianapolis, Ind. Exec.VP & CIO University of Wisconsin Hospitals and Clinics Michael J.Sauk Wells Fargo & Co. Avid Modjtabai www.uwhealth.org Madison,Wis. VP & CIO www.wellsfargo.com San Francisco, Calif. Exec.VP,Technology and Operations Unum Group Kathy Owen Werner Enterprises Inc. Anthony M.DeCanti www.unum.com Chattanooga,Tenn. Sr.VP & CIO www.werner.com Omaha, Neb. VP of Analysis & Information Systems UPS Inc. David Barnes West Bend Mutual Insurance Co. Tracey Berg www.ups.com Atlanta, Ga. Sr.VP & CIO www.thesilverlining.com West Bend,Wis. IT Business Applications & CIO USAA Greg Schwartz West Interactive Corp. Greg Bishop www.usaa.com San Antonio,Texas Sr.VP of IT & CIO www.westinteractive.com Omaha, Neb. Sr.VP of Business Solutions USANA Health Sciences Roy Truett Western Corporate Federal Credit Union (WesCorp) Gene Berger www.usana.com Salt Lake City, Utah CIO www.wescorp.org San Dimas, Calif. VP of IT UST Global Inc. Robert Dutile Wet Seal Inc. Jon Kubo www.ust-global.com Aliso Viejo, Calif. CIO www.wetsealinc.com Foothill Ranch, Calif. VP & CIO Valassis Communications Inc. Steve Carrington Wheels Inc. Steven Loos www.valassis.com Livonia, Mich. VP & CIO www.wheels.com Des Plaines, Ill. VP of IT & CIO Valmont Industries Inc. Steve Branscombe Whirlpool Corp. Kevin Summers www.valmont.com Omaha, Neb. VP of IT www.whirlpoolcorp.com Benton Harbor, Mich. Corp.VP & Global CIO The Vanguard Group Inc. Paul Heller WinWholesale Inc. Steve Hangen www.vanguard.com Malvern, Pa. Managing Dir.& CIO www.winwholesale.com Dayton, Ohio CIO Verizon Communications Inc. Shaygan Kheradpir Wipro Technologies Laxman K.Badiga www.verizon.com New York, N.Y. Exec.VP & CIO www.wipro.com Mountain View, Calif. CIO Verizon Wireless Ajay Waghray Wuesthoff Health System Inc. David L.Barnhart www.verizonwireless.com Basking Ridge, N.J. VP of IS & CIO www.wuesthoff.org Rockledge, Fla. CIO Veyance Technologies Inc. Nathaniel Leonard W.W.Grainger Inc. Timothy M.Ferrarell www.veyance.com Fairlawn, Ohio VP & GM of IT, Logistics, Procure.& Seawing www.grainger.com Lake Forest, Ill. Sr.VP & CIO VF Corp. Martin Schneider Xcel Energy Inc. David C.Harkness www.vfc.com Greensboro, N.C. VP & CIO www.xcelenergy.com Minneapolis, Minn. VP,Business Systems & CIO Vision-Ease Lens Flo Kinzel Xerox Corp. John McDermott www.vision-ease.com Ramsey, Minn. CIO www.xerox.com Norwalk, Conn. Corp.VP & CIO VMware Inc. Mark Egan XO Communications Robert Geller www.vmware.com Palo Alto, Calif. CIO www.xo.com Herndon,Va. CIO VWR International LLC Charles R.Patel YRC Worldwide Inc. Michael Naatz www.vwr.com West Chester, Pa. Sr.VP & CIO www.yrcw.com Overland Park, Kan. Pres.,Cust.Care Div.& Chief Cust.Officer Walgreen Co. Tim Theriault ZSL Inc. Shivakumar Kandaswamy www.walgreens.com Deerfield, Ill. CIO www.zslinc.com Edison, N.J. Exec.VP of IT & R&D Region Key Northeast South Midwest West

68 Sept.13, 2010 informationweek.com

InformationWeek Great Ideas To Steal These InformationWeek 500 innovators are trying unique approaches to solve business problems.Could your company use a few extra bright ideas?

20Southern Puts Worker Data In Its Place Southern Co. operates 76 power plants with more than 12,000 workers, many of them contractors, rotating among different plants as needed. Until recently, it kept records on worker certifica- tions, training, drug tests, back- ground checks,and other information at each plant. When a worker switched plants,it was often easier to redo tests and training rather than chase down information at a another plant. But that approach was costly and annoyed workers. Last year, Southern centralized all the worker information with a Web application that provides a Emergency Room Waits Worth Advertising central repository of worker data. Now, workers can easily move Healthcare services provider HCA’s East Florida division is so sure pa- from plant to plant,using technol- tients won’t have to spend a long time waiting to see a doctor at its emer- ogy like hand scanners to gain en- gency rooms, it advertises average wait times on digital billboards around try.The system will save the com- communities where its hospitals and surgery centers are located. pany $5.8 million over 4.5 years in The billboards evolved out of an effort to streamline the workflow in the labor and drug-testing costs. It’s East Florida division’s emergency services department.The division devel- also being sold to other utilities. oped software that extracts ER wait times and averages them over a rolling four-hour window. This gave staff a way to easily monitor workflow and wait times. Once that was accomplished,the division decided to make wait-time data available to the communities it served. Using RSS feeds, it posted wait times on its hospital Web sites,created an iPhone app,and provided text messages, along with the billboard messages. “This type of transparency is not common in the hospital industry and required great confidence in our emergency services operations,” says HCA, which runs 163 hospitals and 105 surgery centers in 20 states. Generally, 65% of a hospital’s inpatient activity is derived from ER admissions.The ER wait-time service is credited with helping increase emergency room admissions at HCA’s East Florida division by nearly 7%.

Get more great ideas from the 2009 InformationWeek 500 at informationweek.com/500/09/ideas informationweek.com Sept.13, 2010 71 20 Great Ideas To Steal POS Data Drives Wet Seal’s Project iRunway Products To Shelves Teen clothing retailer Wet Seal’s Del Monte had two problems: iRunway iPhone app takes personal- It didn’t have a consistent de- ized marketing to a new level. It lets mand forecasting process across customers scan product bar codes in the company, and its sales team Wet Seal stores and see all outfits that had a lot of information about other customers have put together customers but wasn’t synthesiz- with that item. ing it well. IRunway links to Wet Seal’s social First the company created a sin- media platform, where customers gle demand planning process us- post outfits created with the retailer’s ing i2 Technologies’De- clothing. Eighty-five percent of all mand Manager. This items in a store have customer- improved forecasting generated outfits that are rated by efficiency and accuracy, their peers. and took five days out Wet Seal uses products customers of the sales and opera- scan to create personalized notifica- tions planning cycle. tions and product offers for them. Then it worked with One Network Enter- prises to create a soft- Data Visualization Speeds Up Eli Lilly Drug Trials ware-as-a-service-based system that combines daily point-of-sale In developing new drugs, Eli Lilly compounds and doses, as well as to and forecast data to directly drive devotes significant time to drug and optimize study designs. replenishment processes and pre- disease modeling.Before its Modeling Executing simulations and compil- vent its products from going out and Simulation Explorer effort,re- ing results,which previously required of stock on store shelves. ferred to as MuSE, generating and days or weeks of modeling experts’ The results have been dra- packaging simulation results was a time, can now be done in minutes. matic: Replenishment planning manual process that took a significant And Lilly clinical trial designs are ben- that used to take days and reams amount of modeling experts’time. efiting from improved dose/response of paper is now done several MuSE created an interactive envi- relationships,better trial dose starting times a day.And more important, ronment that makes it possible to points, and the ability to simulate in-stock levels are running at extract and visualize model-derived multiple trial endpoints. All of these above 98% to 99% during key information in real time. This infor- contribute to more efficient clinical promotional periods. mation makes it easier to pick drug trials with fewer failed designs.

Data On Demand From P&G’s ‘Cockpit’

To enable its employees to collaborate more effectively,Procter & Gamble created the Decision Cockpit, a digital platform that supports faster, real-time decision-making across all brands and business units. Users design their own portals, identifying relevant business intelligence that’s available in real time,on demand. In some businesses,370 tracking reports have been reduced to 30. Overall there’s been a 50% to 70% reduction in reports and touches,with 16 fewer data requests on average from each person using the cockpit.P&G has seen a 30% to 50% cost savings in some markets, improved data sharing security, and a savings of more than 400 miles of paper in just one year.

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McCoy’s Helps Contractors Sell Themselves

Building supplies and farm equipment retailer McCoy’s provides its best contractor customers with customized Web pages where they can advertise services they offer, their qualifications, licensing, warranties, and pricing, as Deere’s Big Machines well as photographs of their work. Get Health Service McCoy’s retail customers can go to the network,plug in a ZIP code,and see a list of participating McCoy’s contractors in the ZIP code specified.They can view John Deere’s construction and the customized page of each contractor and contact them about a project. forestry division has introduced What makes McCoy’s Contractor Network intriguing is that contractors must be Fleet Care, a service that relies on invited to join;it’s not a “pay to play”program.Also,customers seeking a contrac- actual data from the machine to tor don’t fill out a form and wait for responses.They contact contractors directly. drive when fleet maintenance gets done, rather than relying only on scheduled intervals. Fleet Care leverages an existing telematics platform called JDLink that transmits data to and from a machine over wireless cellular— soon to be satellite—data networks. Machine operating data is transmitted to John Deere daily, and higher-priority error and problem indicators are sent on demand. The telematic data along with laboratory analysis of machine flu- ids is automatically fed into an ex- pert system. Other inputs into the Vans Creates Unique had a dated interface and limited system include preventative main- social capabilities. The site now of- tenance schedules and visual in- Shoe-Buying Experience fers live chat, a scratch pad where spections of machines.The data is VF,maker of Wrangler,North Face, customers can save shoe ideas processed through a flexible rules Lee, and other clothing brands, re- while trying out new designs, and engine that codifies Deere engi- designed its Vans e-commerce site support for multiple-angle viewing. neers’ vast experience and under- to make it easier for customers to The site also lets Vans pre-config- standing of how to interpret com- create customized sneakers and ure shoes to give customers a start- plex machine data. The system then share the experience. ing point. The project resulted in a translates this data into plain lan- Vans had a customization app on significant increase in Van’s custom guage and suggests how to proac- its site,but it was difficult to use and shoe sales and Web site traffic. tively maintain machine health.

Sept.13, 2010 73 20 Great Ideas To Steal InformationWeek GPS-Equipped Garbage reroutes drivers when dispatchers Trucks Cut Waste add stops midroute. It gives dispatchers real-time updates on a ve- Waste Management has put GPS hicle’s progress. And it lets dispatch- tracking and on-board touch-screen ers reassign work and automatically computers in its Seattle garbage notify drivers of changes through in- trucks to capture real-time route stant messages. status information and provide Under the new system,missed pick- wireless communications between ups are down 60%. And Waste Man- drivers and dispatchers.The system agement has exceeded tightly de- includes custom mobile software fined service levels in its contract with running on ruggedized touch- Mobile software provides a map the city of Seattle.Waste Management screen tablet PCs with a Web-acces- of collection service points, replac- also has cut paper consumption by sible custom dispatch application. ing a paper address list. The system more than 1 million sheets per year.

RACE Cloud, provides on-demand Data Mining Reroutes computing for sales and other mo- ER ‘Frequent Fliers’ bile workers. It has an extensive image library of server configurations. Group Health Cooperative of IT and R&D recognized that SAS’s South Central Wisconsin, a non- product testing groups could benefit profit managed care provider, from the image library’s repeatable launched a data mining project and reusable capabilities. last year to cut costs for services A small group of developers now provided outside of its own clin- build library images that are used by ics. Among 17 potential targets SAS R&D Gets Boost all testers,resulting in faster testing cy- that the group identified was From Cloud cles. Developers no longer spend what became known as “emer- weeks staging and preparing servers gency room frequent fliers”— Cloud computing has let SAS for testing.SAS already is provisioning just 98 of the cooperative’s streamline its R&D development, more than 4,000 environments a 62,000 members who visited ERs testing, and delivery. The analytics week. At any time there may be 1,200 more than six times a year, rack- software developer’s Remote Access environments running, and that’s ex- ing up charges of $2.2 million. Computing Environment, called the pected to double by year’s end. The cooperative’s Care Manage- ment and Community Services departments con- Interface Helps GM Collaborate Across Factories tacted each of the frequent General Motors has developed a user interface for its factory systems that fliers and dis- has transformed its factories from highly manual, isolated places into more covered that collaborative environments. The Assembly Processing System bridges the many didn’t gap between engineering and manufacturing users. Its interactive software understand the frees users from time previously spent on step-by-step communication and importance of laborious manual tasks, like compiling inconsistent spreadsheets. having a primary healthcare The system has an information portal that contains engineering part spec- provider. They also didn’t know ifications,process and quality mandates,and local process specifications.The about the company’s urgent care portal ties in social media, including blog-like information sharing. The sys- facility, a lower-cost alternative to tem also provides mashups of some previously unavailable data streams. the emergency room. In the pro- GM credits the system with assembly time reductions of 15% annually, re- gram’s first six months, costs as- sulting in savings of several million dollars per plant.The company plans to sociated with ER frequent fliers sell the system commercially next year to other manufacturers. decreased by $481,000.

74 Sept.13, 2010 informationweek.com 20 Great Ideas To Steal Royal Caribbean Links than 300 46-inch monitors strategi- Digital Signs And Data cally placed to provide information to passengers. The displays vary Royal Caribbean’s Oasis of the Seas from passive screens with safety is the world’s largest cruise ship, demos and information on activities measuring almost 1,200 feet long, to fully integrated and interactive 213 feet tall,and 208 feet wide.That’s touch panels that provide real-time nearly 50% larger than the previous information regarding activities on largest cruise ship, with a maximum the ship. For example, the monitors capacity of 6,300 guests and 2,200 can display which restaurants have crew. A ship this size requires de- open tables and which have a wait- tailed planning to help passengers ing list, based on data captured us- get around, and its guest mobility ing shape-recognition cameras.They system is a ship-wide digital signage support multiple languages, includ- United Stationers’ network to do just that. ing English, Spanish, French, Italian, E-Commerce Breadth It consists of a network of more German, and Portuguese. United Stationers, a wholesale distributor of office products, is transforming itself into a provider of broader, revenue-generating services,such as online marketing and technology, to resellers. The company provides a range of services to help 25,000 resellers with e-commerce, including cross-media content for print, the Web,and e-mail.Its search engine is embedded in hundreds of re- seller Web sites. Increasingly, United Stationers also is selling technology. It offers resellers a wholesale distribution software suite that they can cus- Verizon Wireless Makes Selling Simpler tomize. And it recently acquired MBS Dev, a software and services In mid-2008,Verizon Wireless needed to make a drastic change to its retail provider to resellers,so it can pro- sales system.The existing one lacked the speed and flexibility Verizon’s more vide more services,including inte- than 2,400 retail outlets needed. The company decided to create a stream- gration of e-commerce and other lined sales-order processing system, called SHOPP,aimed at reducing the business functions, such as cus- sales transaction time and improving efficiency. tomer service, purchasing, fi- SHOPP’s interface provides a simple and intuitive view of everything sales nance, credit and collections, and reps need to complete an order, including a real-time credit module, pricing analytics. and discounting modules,and a payment and signature module that makes Next,United Stationers plans to sure a device is ready to use when the customer leaves the store.SHOPP can create a development laboratory be used on a mobile tablet PC, letting sales reps move through the store for online marketing and mer- while completing the entire sales transaction. chandising techniques for office SHOPP has cut order processing time by at least 40%,saving about 500,000 products. It’s also planning a pri- hours of order processing time across the company. And within IT, it has re- vate cloud that will provide a rev- placed four separate order processing applications,resulting in a single code enue-generating ERP and e-com- base. This has driven operational efficiencies across the technology group, merce offering to resellers. while reducing maintenance, development, and training costs.

76 Sept.13, 2010 informationweek.com InformationWeek

Performance Catches On At First Horizon SOA Expands Insurer’s Marketing Options First Horizon National, a Tennessee financial services Progressive has developed an provider, implemented a e-commerce system that lets a company-wide perform- competing car insurer send cus- ance management system tomers to Progressive for motor- called Bonefish—so named cycle, boat, and RV insurance, but because its financial metric keeps Progressive from trying to diagram resembles a fish sell those customers car insurance. skeleton. One part of that effort, MyPlan, makes Bonefish goals transparent across the company.It lets First Horizon cascade those goals from the CEO down to the bank branch tellers.All employees participate in goal creation and align- ment, and as a result are more focused on the bank’s profitability.

Users Show CenterPoint How To Manage Data

CenterPoint Properties, an indus- drag and drop a message to a folder. Using a service-oriented archi- trial real estate developer,was wrest- Instead of fighting e-mail’s popu- tecture, Progressive integrated its ling with out-of-control growth of larity, CenterPoint leveraged it by apps with those of other insurers. unstructured data. Critical informa- creating Cubby, an Outlook add-in It writes rules so the site recog- tion was locked up in people’s in- that exposes everything that a user nizes when customers are re- boxes,hurting overall productivity. works with, including objects in ERP, ferred from an auto rival site, and When content management sys- CRM,and custom systems,as a folder suppresses information about tems didn’t solve the problem, Cen- structure.Cubby filters the objects so Progressive’s auto products. terPoint looked closer and discovered users only see what they’re working The system also lets Progressive that employees preferred Outlook on. They drag whatever they want to carry other insurers’ products, so folders for storage because of the save to the appropriate “in-box” it can sell partners’ homeowners proximity to e-mail. It was easier to folder, and Cubby takes over. insurance, for example.

FedEx Sensor Pairs GPS And Collaboration Capabilities

FedEx SenseAware combines a GPS sensor with a Web-based collaboration platform to let customers shipping sensitive, high-value goods know not just where their packages are, but what conditions they’ve endured. Customers put the SenseAware device in a FedEx package, and it provides near real-time data on the vital statistics of the contents,including location, temperature, and when it was opened or exposed to light. Customers can get alerts when any of those conditions change,and share data on their shipments with supply chain partners. FedEx has done limited release of SenseAware to life science customers,such as biotechnology,pharmaceuticals, and healthcare companies.

Sept.13, 2010 77

Government Innovators With projects ranging from safer Web browsing to a 21st century air traffic control system, federal, state, and local agencies demonstrate that they, too, can apply IT in critical and novel ways

Federal Agencies By John Foley

Aviation Administration’s Auto- matic Dependent Surveillance- Broadcast system, a foundational technology for the agency’s “NextGen” air traffic control system. Four of our chosen projects are healthcare-related, a reflection of the central role that healthcare IT now occupies at all levels of government.

Federal Bureau of Investigation Special agents and other FBI employees are better equipped to collaborate and track down fugi- [FBI’s new Next Generation Workstations enable ad hoc collaboration tives as the result of two agency- wide IT upgrades that deliver overnment agencies get criticized regularly for their all- much-improved desktop capabil- too-common IT security lapses, gross inefficiencies, and bilities and network access. lion-dollar boondoggles. Yet the public sector also can be The agency first overhauled its surprisingly innovative in its technology initiatives,with proj- network infrastructure, replacing ects that lay the groundwork for new services, improved ATM/frame relay gear with IP/ Gcomputer and national security, and more effective government. Multiprotocol Label Switching. Its The U.S. Postal Service’s Intelligent Mail service, for example, repre- new Next Generation Network in- sents a new era for the 230-year-old mail system, which still delivers let- creases bandwidth and reduces ters and packages by mule in rural Arizona. Introduced last year and latency in 800 locations. As that based on a more complex bar code that makes it possible to track indi- project wound down, the FBI be- vidual pieces of mail, Intelligent Mail is more efficient while giving mega gan replacing outdated PCs with users such as banks and retailers better visibility into their direct mail sleek new systems featuring 24- efforts. inch monitors, integrated IP Intelligent Mail is one of 15 projects—10 by federal agencies, five by phones, and collaboration tools state and local governments—selected by the editors of Information- such as presence awareness, in- Week Government for recognition in our 2010 Government IT Innova- stant messaging,and videoconfer- tors contest. The winners range from a lightweight technology devel- encing. FBI personnel can now oped by the Air Force for more secure Web browsing to the Federal quickly establish multiparty video-

78 Sept.13, 2010 informationweek.com InformationWeek

conferences for unscheduled meet- lated office closings. It has been ap- ceived a thumbs-up in all 10 cate- ings and information sharing. proved for emergency telecommut- gories of the White House’s open ing by the Department of Defense. government dashboard. In August, Centers for Medicare and Medicaid the agency was recognized by fed- Services General Services Administration eral CTO Aneesh Chopra for its Reg- The Centers for Medicare and Agencies across the federal gov- ulation Room, as well as for the Medicaid Services’ CMS Dashboard ernment are taking their first steps “leadership,governance,and culture is a first step in making timely data into cloud computing, often with change”embodied in its approach. from the nation’s largest health in- help from the General Services Ad- surance program more widely avail- ministration. From the time that the Federal Aviation Administration able to the public, policy makers, Federal Cloud Computing Initiative A linchpin in the FAA’s long-term and healthcare providers. After six was launched in September 2009, plan to upgrade the nation’s air traf- months of internal testing, CMS GSA has played a central role in Un- fic control system is Automatic De- Dashboard was launched as a beta cle Sam’s move to the cloud.GSA CIO pendent Surveillance-Broadcast, or site in April. In its first iteration, the Casey Coleman is chairman of the ADS-B, which provides data of un- site lets users track Medicare spend- CIO Council’s influential Cloud Com- precedented precision and timeli- ing on inpatient hospital services by puting Executive Steering Commit- ness on the whereabouts of aircraft state, by the top 25 diagnosis-re- tee, while Katie Lewin is cloud com- in the air and on the ground. Plans lated groups,and by the top 10 hos- puting program manager at GSA. call for the ADS-B system to replace pitals in each state. An example of A cornerstone of GSA’s cloud com- the 60-year-old, radar-based traffic the federal “open government” ini- puting program is the Apps.gov por- control system nationwide by 2013. tiative, CMS Dashboard uses busi- tal, where government employees ADS-B is being deployed in a grow- ness intelligence technology to can subscribe to pre-approved pro- ing number of areas, including make data available in bar and bub- ductivity and business apps offered Juneau, Alaska; Louisville, Ky.; and ble charts, time-series graphs, and as a service. The pending introduc- grid tables. Plans call for data sets tion of infrastructure as a service on from other CMS programs to be Apps.gov—including storage, added to CMS Dashboard. servers,and Web hosting—will make it possible for government agencies U.S.Air Force to sign up for on-demand,virtualized A team at the Air Force Research IT resources with the same ease that Laboratory at Wright-Patterson Air businesses now tap into Amazon’s Force Base in Ohio has developed a Elastic Compute Cloud. That should simple software program, called make federal IT operations more flex- Lightweight Portable Security, that ible and adaptable. enables secure computing in a vari- ety of common scenarios.LPS is avail- Department of Transportation able in a free, public version, and in a Given its authority over highways version intended for government use and railways, it seems appropriate called LPS-Remote Access. The latter that the Department of Transporta- employs a minimized Linux operat- tion is charting a course into open ing system that connects to a hard- government.The department’s Reg- coded IP address, establishing a VPN ulation Room initiative,done in con- to a remote computer. junction with the Cornell e-Rule- LPS-Remote Access was created in making Initiative, employs social mid-2009 in response to the H1N1 networking to encourage public in- Philadelphia. Because it employs pandemic threat. The H1N1 threat put into DOT policy-making,and the GPS, ADS-B extends capabilities to never materialized to the extent department hosted an open gov- new areas of coverage. ADS-B feared,but the software has proved to ernment workshop in January that ground stations were deployed on have a range of potential uses, such drew attendees from three dozen oil rigs in the Gulf of Mexico and, in as telecommuting during weather-re- agencies. DOT’s efforts have re- November 2009,service was turned

Sept.13, 2010 79 Government Innovators

on, making helicopters and other adoption is growing so quickly that the Centers for Disease Control and aircraft over the Gulf visible to air it’s fast becoming a major source of Prevention developed an API that traffic controllers for the first time. revenue.USPS estimates the service hastens the sharing of its informa- The system makes for improved “sit- will be adopted by 50,000 cus- tion with other health organiza- uational awareness” in the cockpit, tomers and generate $25 billion in tions, including public health too,because pilots receive real-time annual revenue. departments and educational insti- data on aircraft that are in close Full Service is enabled by a more tutions.The CDC’s Content API pipes proximity to their own planes. sophisticated bar code and up- health and safety information di- grades to USPS’s automated mail- rectly to Web sites such as Flu.gov, Recovery Accountability and distribution technology.The service FDA.gov, and FoodSafety.gov. Transparency Board is architected for scale, capable of In one example of how that API While other federal agencies tip- handling a half-billion pieces of mail works, more than 100 pages of toe into cloud computing, the and 1 billion scan transactions daily. H1N1-related content were shared Recovery Accountability and Trans- Full Service Intelligent Mail is ori- with Flu.gov.This type of syndicated parency Board jumped in with ented toward businesses that are information sharing, while good both feet. In April, the board transi- heavy-duty mailers,giving them the business practice during the best of tioned its public-facing Web site, ability to track individual pieces of times, becomes critically important Recovery.gov, from on-premises IT during public health emergencies. infrastructure to Amazon.com’s Elas- tic Compute Cloud,making it one of Health and Human Services the first government agencies to The Office of the National Coordi- place such a big bet on a commer- nator for Health IT is advancing the cial cloud service. Orchestrated by adoption of electronic medical the board’s IT contractor,Smartronix, records through its work on the Na- the move will lead to an estimated tionwide Health Information Net- $750,000 in savings over 18 months, work.A key development is the NHIN while freeing up hardware and soft- Direct Project, launched in March to ware for other uses. The board fig- mail and better insight into undeliv- expand the number of ways that ures that its site is actually more se- ered mail, which amounts to a stag- data can be simply and securely ex- cure than before,because it now has gering $2 billion annual cost. changed at a more local level, such two layers of security—its own, plus as when a doctor is making a referral that provided by Amazon. Centers for Disease Control to a specialist. The project involves In the face of fast-spreading identifying standards, service defini- U.S.Postal Service health hazards—H1N1, salmonella, tions, and implementation guides in The Postal Service’s “Full Service” seasonal flu—the timely distribu- support of this important initiative. Intelligent Mail, introduced in May tion of preventive and other infor- 2009, is still in the early going, but mation is critical.With that in mind, Write to John Foley at [email protected]

State And Local Government By J. Nicholas Hoover

Washington,D.C rics, budget and customer service ternal version for city officials that TrackDC is a leading example of data,agency documents—from var- has reduced the labor associated how municipal governments are ious sources into a Web interface, with developing reports and given making data available to citizens in and makes data available in ma- city managers a window into opera- new, user-friendly ways.The District chine-readable and other formats. tional effectiveness. of Columbia describes TrackDC as a The initiative’s goals include in- “real-time dashboard.” An ASP.NET creasing accountability and public Douglas County Sheriff’s Office application, TrackDC pulls informa- trust by providing better access to Data overload prompted the tion—performance plans and met- government data.There’s also an in- Douglas County Sheriff’s Office to

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develop an application that coming the system last year, the county bines geodata from various systems has studied its effects and has found into an interactive map using improved quality of care for pa- Google Earth and the county’s geo- tients. The ability to refer patients graphic information system from electronically from the emergency ESRI. The application, called i-Map department to their primary care (short for Incident Map), gives physicians led to a 52% decrease in county employees access to 50 lay- the likelihood of a related return ers of mapped information, includ- visit to the ER,resulting in estimated ing roads, lakes and rivers, parks, annual savings of $636,000. government facilities, and police routes. I-Map integrates with com- California eServices Office puter-aided dispatch, letting emer- The challenge of serving Califor- gency personnel view call locations nia’s citizens has been made difficult and the whereabouts of emergency by the tough economy, combined and police vehicles and snowplows, with the state’s own budget woes. as well as the homes of sex offend- People come to the state’s primary ers or people with special needs. It Web site,CA.gov,“because they need also links to data feeds coming from to, because they have to,” according school and government buildings. to California’s eServices Office. The The system has been used to cre- eServices Office, which develops ate an evacuation plan in the event [ Videoconferences get closed captions Web sites and Web applications for of a major forest fire and to plan se- state agencies, is behind several e- curity around school events. It took say, veterans claims—but who are government initiatives that have el- three IT staffers four months to de- located in another office. The state evated state services at little or no velop i-Map.The county pegs its an- also plans to hold unemployment additional cost to state taxpayers. nual savings at $750,000, based on claim hearings and advisory board For example, when furloughs cre- the cost to acquire the same capa- meetings over video, and it will po- ated long lines at Department of Mo- bilities on a commercial platform. tentially let clients who can’t get tor Vehicles offices, eServices turned into an office use PC-based video- to Twitter to answer questions. Else- Wisconsin Division of Vocational conferencing to meet with staff. where, a widget was created for the Rehabilitation state’s Employment Development The Wisconsin Division of Voca- Orange County Health Care Agency Department that combines the de- tional Rehabilitation recently de- The Orange County Health Care partment’s news, Twitter, and You- ployed videoconferencing systems Agency has designed and deployed Tube services for the public. Within to 12 of its offices.That alone would- an electronic health record system two months, the widget had re- n’t warrant special attention, but the for people enrolled in the Medical ceived 2 million impressions. division’s clientele—people with Services Initiative, a healthcare pro- California’s eServices Office also hearing impairments and other dis- gram for about 45,000 of the worked with six other state organi- abilities—made the project more county’s indigent adults.The system zations to develop and launch a challenging than most.The agency’s links pharmacies,lab and diagnostic Web site, at business.ca.gov, in sup- system supports remote closed cap- centers, hospital emergency rooms, port of the Office of Economic De- tioning of videoconferences, elimi- community clinics,and primary care velopment,after that office was cre- nating the need for on-site sign lan- physicians. ated through the consolidation of guage interpretation, and includes The project required develop- other departments.As the eServices headsets that amplify sound for both ment of a Web-based health record Office has demonstrated, it’s neces- staff and customers who need it. system, MSI Connect, to capture sary to do more with less when less The state plans to use the system data such as emergency room ad- is all you’ve got. in other ways. For example, it will missions and discharges, diagnosis connect clients with staffers who and procedure codes,prescriptions, Write to J. Nicholas Hoover at have expertise in a particular area— and specialty referrals.Since deploy- [email protected]

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[ RESEARCH ANALYSIS ] InformationWeek From Academia To Action

n a unique research partnership over the past three years, InformationWeek has granted Baylor University business professor Kevin Kobelsky, along with his colleagues, access to the IW 500 data, under a strict nondisclosure agreement. Like InformationWeek, he agreed not to disclose any individual company data and only to reveal aggregate data. Kobelsky’s research has led to three research papers published in academic journals, with a fourth accepted for this fall. Far from ivory tower theory, each of the papers has practical insights and actionable advice that business technology leaders can tap into about how IT delivers business value. What follows are highlights of the authors’ findings.

Kevin Kobelsky is an assistant professor in the Department of Accounting and Business Law at Baylor’s Hankamer School of Business,where he teaches accounting information systems and information systems security.The reports are available,for Ia fee,at the links below each section.Want to participate in this type of research? Contact him at [email protected]. Outsourcing Doesn’t Cut Total Spending Practical Insight Actionable Advice

ompanies that outsource tend to our outsourcing isn’t really about cost cutting, right? You want Cincrease their total IT spending,not Yto reinvest savings and move people to focus on higher-value lower it. It’s true that companies likely work. CIOs apply some variation of this old saw to offshore out- are getting more IT for that money, sourcing all the time. But it’s a half truth—offshoring is without whether it’s spent on one-time applica- question about cutting costs of some work by shipping it to lower- tion development projects or for ongo- cost locales. What this research suggests, however, is that the sec- ing services such as help desk or appli- ond part, that the cost savings are reinvested, really is often true. cation support.Still,the fact that total IT spending doesn’t decrease backs up Report Excerpt the idea that outsourcing is more about increasing the total capability of an IT The impact of IT outsourcing is immediate and symmetric. organization, not just shipping chunks New“ outsourcers see immediate IT spending increases, while firms out to a lower-cost provider for a one- stopping [IT outsourcing] see immediate decreases.The analysis in- time IT spending cut. The lesson: If you dicates that IT spending increases by more than the proportion out- plan to cut total IT spending by out- sourced,suggesting that firms use [IT outsourcing] as a component sourcing, you’re bucking the trend. of a larger capability-enhancing initiative.” “The Impact Of Outsourcing On Information Technology Spending,”International Journal Of Accounting Information Systems,June 2010 Authors: Kevin W.Kobelsky, Michael A.Robinson informationweek.com/500/10/outsource

informationweek.com Sept.13, 2010 83 [ RESEARCH ANALYSIS ]

You Might Be Treating IT Projects As Too Risky Practical Insight

here’s a productivity paradox around IT. Companies seem to underinvest in IT, given the extent to which it Traises employee productivity.The likely reason: IT is seen as too risky, with the potential to blow up earnings. IT projects can fail or succeed spectacularly and can be devilishly hard to manage, so they increase risk and earnings volatility, much like a big equipment investment. However,business leaders don’t look closely enough at the competing effect that IT spending has on risk—it decreases risk.Because IT provides information that helps executives respond better and more quickly to the ups and downs of business,it lessens the bullwhip effect on earnings,making them less volatile.Which effect dominates depends on three major factors.In some cases, IT is associated with reduced future firm risk. Actionable Advice Report Excerpt

T project and budget planners should consider which of these [Large or diversified firms] Iforces will dominate—the risk-increasing or risk-reducing side should“ consider adding a premium to of IT.Three factors are key to watch. For small firms, undiversified benefit estimates rather than dis- companies, and high-growth businesses, the returns from IT counting them. This provides a new spending are associated with higher risk, yielding the traditional approach for valuing IT investments risk-return trade-off. However, for companies that are large or di- to complement traditional asset valu- versified, IT spending and its related returns are associated with ation and real options theory tech- lower future firm risk. Low-growth firms also tend to enjoy re- niques. IT’s coordination capabili- turns from IT without increasing firm risk. ties may have a direct impact of re- In estimating ROI for IT projects, companies shouldn’t simply ducing operating costs and increasing assume higher risk when discounting future IT returns. If a com- revenues, but they also have an im- pany is large or diversified, it should consider discounting IT re- portant risk-reducing impact: the turns less than other, non-IT projects vying for funds. If it’s a low- smoothing of income.The value asso- growth firm, a similar discount rate for IT and non-IT projects ciated with this business risk reduc- should be considered. Otherwise, the company is likely passing tion could be incorporated as an ex- on projects that should clear a risk-adjusted ROI hurdle. pected outcome.” “Information Technology, Contextual Factors And The Volatility Of Firm Performance,”International Journal Of Accounting Information Systems,September 2008 Authors: Kevin Kobelsky, Starling Hunter,Vernon J.Richardson informationweek.com/500/10/risk

IT Spending Info May Move Your Stock Price Practical Insight

company’s IT expenditures help explain its future performance,both in accounting measures like income and Aearnings volatility,and in stock price.Companies making substantial (top quintile) IT investments tend to out- perform the market, an effect that’s most pronounced among underperformers that start investing heavily in IT. These impacts can be considerable: Firms with below-average returns on assets that then become top-quintile IT spenders provide returns to their investors 8% higher than low-ROA firms that don’t make the IT investment.How- ever, companies rarely reveal their IT spending and thus might contribute to stock market mispricing, since investors don’t have that data to consider. In terms of regulatory policy,the research provides an argument for companies to disclose spending for IT in the same way they do for R&D.

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Actionable Advice Report Excerpt

oluntarily revealing IT spending as … We report evidence that firms’ IT expenditure informa- Vpart of quarterly earnings might help tion“ predicts their concurrent market values and the level and financial markets get companies’ stock volatility of future earnings. We also report evidence that firms price right—for better or worse.However, with the highest IT intensity (IT expenditures relative to sales) this research focuses only on the poten- earn abnormal buy-and-hold returns for one, two, and three tial gains from disclosure. The challenges years after the year of IT investment. Furthermore, these excess and costs of disclosure, such as competi- market returns accrue to firms with a record of below-average tive effects,measurement difficulties,and prior performance. Despite the likely pressure to improve earn- preparation costs, are less clear. Whether ings, managers of some poorly performing firms persist with a the trade-offs of the cost and challenges strategy of significant IT investment, seeming to accept the asso- of complying are worth the information ciated reduction in current earnings in anticipation of improved benefit will depend on the firm. future performance.” “The Relevance Of Information Technology Expenditures,”Journal Of Information Systems, Fall 2010 (not yet available) Authors: B.Charlene Henderson, Kevin Kobelsky,Vernon J.Richardson, Rodney E.Smith jisonline.com

Beware Of Simple Benchmarks Practical Insight Actionable Advice

ompanies regularly use percent of IOs and CFOs should explicitly adjust baseline industry averages Csales to benchmark their IT spend- Cto account for firm and industry contextual factors that drive ing against the industry. It’s a sensible budgets, and use that to justify departures from the industry norm. starting point. But what if your com- They might even find that similar misalignment occurs in other ar- pany’s profits are more sensitive to eas—R&D,advertising, maintenance—and the same discipline could changes in market conditions than be used.However,don’t expect this research model to spit out an ideal other firms’? Or,if your firm is less diver- IT spending number,after which the returns start to decline.That’s un- sified, or more profitable, or has less clear, likely because more contingencies must be considered, factors debt, or more stable sales? In these such as whether a company has great IT talent, investments aligned cases, an industry benchmark will be with strategy,and business investments that complement IT spending. too low, leading you to spend less than you should, possibly putting you at a Report Excerpt competitive disadvantage. This study suggests there are signifi- We find evidence that environmental complexity,resource avail- cant differences among industries, ability,sales“ growth,and technological factors influence firm IT budget driven by differences in how IT is used levels. … IT budget levels are positively influenced by environmental and the level of competition. That vali- uncertainty and industry concentration.Firms with greater related di- dates the use of industry benchmarks in versification have higher budget levels than firms with greater unre- budgeting. But it also finds that differ- lated diversification. More profitable firms have higher IT budget lev- ences among companies matter a lot, els,while firms with greater debt or higher growth have lower budget which provides a caution against trust- levels.Furthermore,IT budget levels vary with industry strategic IT role ing those benchmarks too much. and the high tech or low tech nature of the industry.” “Determinants And Consequences Of Firm Information Technology Budgets,”The Accounting Review, July 2008 Authors: Kevin W.Kobelsky,Vernon J.Richardson, Rodney E.Smith, Robert W.Zmud informationweek.com/500/10/benchmark

Sept.13, 2010 85

down toBusiness from the editor ROB PRESTON

Culture Is Critical,So Work At Cultivating It

ulture. Few business attributes are so and evolve, one reason we think it’s worthy critical to success yet so imprecise, as of our top ranking. Cin, “We must get our culture right, if That’s not to say that one culture fits all. The only we could figure out what it is.” Compa- innovation culture at the No. 2 Information- nies and their IT organizations often talk Week 500 company, InterContinental Hotels about cultivating a culture of collaboration Group (see story, p. 33), is a bit more open- and innovation, even if they’re not clear ended. IT employees are encouraged to exper- about the means, or even the ends. iment with a range of new technologies at The last two CEOs of Hewlett-Packard, it is IHG’s innovation lab in Atlanta. “As long as Even first-class said, were casualties of their refusal to fit into they don’t burn down a hotel or electrocute a and foster the company’s established culture guest, those are the only two rules that really corporate cultures of walk-among-the-troops leadership, dis- apply,” jokes CIO Tom Conophy. “We don’t tributed decision-making, and work-life bal- want to curtail their thinking.” However, the must adapt and ance—the acclaimed “HP Way” laid down in most promising information technologies evolve.Take the case the 1950s by founders Bill Hewlett and Dave don’t sit in the company’s virtual petri dishes Packard. Critics of the past two HP chiefs, infor long. IHG’s Crowne Plaza property next of Vanguard,our top cluding some longtime board members, door serves as a technology test bed for a chafed at Carly Fiorina’s and Mark Hurd’s au- range of hot new systems and applications. InformationWeek 500 tocratic, impersonal styles (not to mention Looking at innovation on a macroeco- company. Hurd’s expense reporting practices). But crit- nomic level, InformationWeek surveyed 624 ics of the critics wonder if HP’s cultural credo business technology professionals about the has become something of an excuse for doing factors limiting U.S. IT leadership. Among things the same old way. Even first-class cul- the 427 respondents who think the U.S. is tures must adapt and evolve. losing or has lost its high-tech lead, a healthy Vanguard Group, the No. 1 company in percentage cited cultural reasons: a societal this year’s InformationWeek 500 ranking (see culture that emphasizes other high-paying story, p. 30), has refined its culture of IT in- professions over IT professions (cited among novation over the past several decades. Early the top three reasons by 24% of survey re- on, it was a fast follower—not much of an IT spondents) and a corporate culture where innovator but a reliable provider of IT capa- tech workers no longer are “hungry” enough bilities. Later, as Vanguard staked out a lead- to out-innovate counterparts based abroad ership position in the mutual fund industry, (cited by 21%). There’s no pat solution, but it it formalized its process for producing tech- starts with more rigorous science and math nology-based innovations, under a central- education, more serious workplace training ized lab, but that work tended to stray from and career development—and, from the the company’s core business priorities. Today, start, more hands-on parenting. its five-person innovation group coordinates The wrong culture, or even a stagnant one, ad hoc teams of company volunteers, whose can cripple or kill a company or industry. leading-edge IT work is tied more directly to The stakes are that high. business needs but who still are counted on to deliver “wow” breakthroughs in mobility, Rob Preston is VP and editor in chief of social networking, and other areas. Van- InformationWeek. You can write to Rob at guard’s innovation culture continues to adapt [email protected].

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