su 43 issue strategy+business helping them and Consequently, a strategic ap- Consequently, for example, must A bank teller, have roles the different Once marketplace. A company’s future A company’s marketplace. depend and competitiveness growth on attracting quali- than ever more — an increasingly fied workers resourcescarce — together within the efficiently work organizations organization. Business Their suc- like theater troupes: are timing and on cess depends on every his or her person executing it may be. whatever role, of the value to managing proach a definition first requires employees must be performed that of the roles This on the corporate “stage.” of jobs a taxonomy means creating within the corporation that is con- business units, coun- sistent across tries, and functions and is divorced at working the individuals from these jobs. As far as the organization is first is concerned, an employee expected to fulfill a and foremost function, with a number of tasks for which a number of skills are of these tasks are Some required. to the related technical and some are with co- relationships employee’s and outside agencies. workers be able to handle simple transac- tions and be courteous; a chef should be a good cook, act as a team reputa- a reliable and have leader, tion; an airline pilot is expected to and facilitate the air- fly a plane well a pro- and rapid turnaround; craft’s must performduction worker a set of technical tasks and meet ISO in doing so. quality standards been defined, management is in a across horizontally silos — in which they We believe that businesses need believe We Two significant barriers stand Two vertical f companies managed financial f companies managed they do as assets as carelessly sharehold- human assets, then Rethinking the Value the Value Rethinking of Talent functions or business units, accord- they “business critical” ing to how when a company does And even are. contribu- consider an individual’s tion to the success of the organiza- tion, it is all too often limited to a discussion about performance rather than organizational measure- ments of success. a far better understanding of the it is of employees; strategic value critical to success in the global ers, auditors, and regulators would ers, auditors, and regulators on them for ineffi- hard come down is although it Yet cient use of funds. commonly accepted that individuals suc- crucial to an organization’s are cess, many companies cannot mea- or manage their employees’ sure contributions to corporate value. or productive in the way of a more to recruiting, strategic approach employ- deploying and developing, reluc- many managers are ees. First, people, for fear of tant to categorize human appearing elitist. Second, departments typically clas- resources to the sify individuals according functions or the business units — the their roles essential not how work, or what experience or other per- are, to per- required sonal qualities are attempt is made No form the role. to classify people by Jeffrey Joerres and Joerres by Jeffrey Dominique Turcq I The Coming Enterprise Shakeup Rosenbleeth, Mitch Chen and Stephen Corrie DeCamp, Thomas Goldbrunner, Yves Doz, Doz, Yves Thomas Goldbrunner, Wilson and Keeley Michael Schrage Michael The Well-Designed R&D Network Global Jeffrey Joerres and Dominique Turcq and Dominique Joerres Jeffrey My Customer, My Co-Innovator contents the Rethinking of Talent Value 1 6 5 3

comment leading ideas 1 comment leading ideas 2 they are grated into Ambassadors, ed and trained as and trained ed eators and Basic management processes — processes management Basic cast in After the right people are employees brings human resources human brings employees to a new approaches level. and training, development sourcing, sepa- and retention, compensation, same conceptually the are ration — segments. for all four employee since each segment differs However, organiza- critical it is to an in how success, the practical tools tion’s these processes used in applying for sourcing, Take will also differ. on a compa- instance. Depending operational business model and ny’s in some segments, plans, employees such as Cr generally hir are part of the permanent corporate other instances, head count. In Drivers, Masters, Craft however, are Creators and sometimes even structurally (though not organiza- tionally) less closely inte the organization. Instead, temporary on as brought or contract staff or engaged as independent consultants. they must be man- the right roles, to ways, according aged in different example, consider For those roles. and Jack. two training officers, Jill and her is highly professional, Jill almost always training efforts are But Master. successful; she is a Craft and is expected creative more is Jack but also not only to train staffers well the quality of the teach- to improve through was hired ing materials. He Jill, than is paid more a headhunter, that he is depended upon and knows to expand the limits of the training Jill is a Creator. organization. Jack the same job title and, have and Jack But in general, do the same work. in separate business- are and Jack Jill critical categories, thus their salaries, must and promotions evaluations, be handled differently. ensure the ensure represent the represent keep the business Drivers Craft Masters Craft Ambassadors • • • In our system, the differences In organization’s public face and are public face organization’s experience. for customer responsible they are Among other positions, cashiers, bank tellers, supermarket techni- nurses, and field installation workers most cases, these cians. In their skills and easily replaceable are to be particularlydo not have do if they don’t sophisticated, but suf- the business can their job well, fer significantly. quality, timeliness, and cost-effec- timeliness, quality, organization — the of an tiveness for the faultless essential ingredients strategy. of a business execution the design engineers in a These are of a high-tech business, the “nose” perfume brand, the whiskey blender and the auditor in an in a distillery, accounting firm. fashion house. These are scarce are These house. fashion take a long with skills that resources to costly and are time to acquire and maintain. develop running. They are assembly-line They are running. operators, back-office agents, and assistants. Although administrative neither crucial to the suc- they are in to hire, nor hard cess of a venture the most companies they represent largest category human capital, of and bad management of this group can lead to operational disruption or quality problems. among these four segments are in terms of talent valua- expressed tion — such attributes as knowl- edge, experience, skills, and personal interaction capabilities — and not in terms of organizational structures (such as business units) or in human management terms (such resources or com- as age, education, seniority, for strate- This concept pensation). of gically managing the value cost impact, Craft Masters Craft • Lighting director blender • Whiskey • Clinic physician Creators • Principal ballerina • Visionary CEO chef • Renowned devise and imple- on an organization; Cost Impact Cost Organizational Roles Organizational Creators Manpower Inc. Manpower • On this basis, we can classify an we this basis, On Certain a greater jobs have Ambassadors • Box-office salesperson • Flight attendant agent • Call-center Drivers • Supporting cast member worker • Production • B2B call-center agent

Source: A business is like a theater company: Each Each company: a theater is like A business the to that contributes has a role employee value. organization’s Exhibit 1: ment an organization’s distinguish- ment an organization’s or business proposition ing value They include senior execu- model. chief designer in a and the tives organization’s roles into four broad roles organization’s segments, each of which requires talent- a significantly different management approach. because they require a good bit of because they require and skill training, development, complexity to be performed ade- almost always These roles quately. command the highest salaries in the 1.) Exhibit organization. (See there is a substantial risk to financial is a substantial risk there if these performance or reputation not performed In well. tasks are all, these jobs some cases, but not Other merit higher compensation. carryroles significant a position to determine how impor- how to determine position ability is to the company’s tant each and for customers value to create theater language, In shareholders. roles of which the determination it’s and which top billing should have character actors. by can be played impact value Value Impact Value

su 43 issue strategy+business How did Cisco come to share come did Cisco How and innova- marketers Cisco’s we found that when “We’ve costs to conversion are There this inside information? In the past, information? In this inside felt, architects engineers and Cisco’s customers that most often correctly, un- wouldn’t simply and prospects their internal, informally derstand Cisco had assembled aids. However, cus- highly sophisticated several with satisfied tomers who weren’t to see and they wanted “solutions”; be- process understand the thought Were proposals. hind the company’s the best or really these architectures to that Cisco had most cost-effective these Cisco began showing offer? So customers its in-house simulations. And the customers, in turn, ex- to adapt these a desire pressed design, configuration, and opti- use. mization models for their own they tors had not expected this. But swiftly grasped the implications. some thought and polish, With these tools as cus- they repackaged tomer design interaction platforms. custom- of simply “selling” Instead ers on a complete design, they now meetings in conduct collaborative literally see and which prospects implica- play out the architectural priorities. tions of their network our tools with customers rather share much than just demonstrate how our technologies, improved we’ve Randy Pond, learn a lot more,” we of opera- Cisco senior vice president and systems, told a tions, processes, in Cisco CIO customer workshop become have of you 2004. “Several true partners in design with us.” internal work changing improvised accessible by tools into products the external nonspecialists. But cultural a valuable challenge forces innovators change: Technological of and aware become far more “try before “try + One company that understands One tomers get a chance to they buy.” They can adopt and test They can adopt and they buy.” new before ideas and technologies them. And the purvey- in investing ors of new gain technologies rapidly of insights into the potential value — insights that might their wares otherwise to gather. take years giant Cisco this is the networking Cisco’s the years, Over Inc. Systems devel- and engineers have architects oped scads of internal tools that them to design, configure, allow alternative and compare optimize, They often infrastructures. network run sophisticated simulations, for example, to determine the number and switches to recom- of routers mend to customers, or to show imple- a proposed how prospects mentation might work. ment of individuals’ roles. This ten- roles. of individuals’ ment handicap that dangerous dency is a the to measure makes it impossible ultimately, and, of employees value global successfully in the to compete marketplace. Jeffrey Joerres Jeffrey is chairman ([email protected]) of officer and chief executive serv- Manpower Inc., an employment company. ices Dominique Turcq former ([email protected]), at of strategy president senior vice Manpower Inc., is a scientific advisor govern- the French to on labor issues ment planning authority.

hat portion cell of your myriad features phone’s re- Market use? do you

Dealing with employees in this in with employees Dealing in many cases, the very rules Yet In industry after industry, a industryIn after industry,

My Co-Innovator My Customer, My Customer, way can be a complex balancing act a complex balancing way can be it is exactly But for management. what every does — manager already For do — everyor should day. opera the manager of an example, handle a house must continually segments of number of distinct the conductor, people: the singers, the cast, the the casting director, the box- musicians, the bartender, do this, he uses To office cashier. com- techniques, sourcing varied and motiva- pensation principles, in a relatively tional approaches way. instinctive of an organization and procedures can be obstacles to segmentation the treat- “averaging” for and a force by Michael Schrage

search shows that most mobile that shows search use less than 20 per- phone owners that matters The innovation cent. offers; it’s what the innovator isn’t what the customer adopts. And as this, they’re organizations recognize starting to use their customers as a introspection. of innovative source adop- model for innovation shared The most valuable tion is emerging. — the tools and tech- “platforms” nologies used internally to discover, design, and test new products and services — can be creatively and sold or lent to cus- cost-effectively Cus- tomers, clients, and prospects. W

comment leading ideas 3

su 43 issue strategy+business (Har- Serious Play + But in practice, companies that in practice, companies But orga- innovation, externalize To with a fewwith to see of their customers “They he recalls. they used it,” how think they I said no. immediately put their afraid that it would were in in a better position customers with them.” negotiating internal tools typically externalize influence. external greater acquire the ongoing digitaliza- Moreover, tion and virtualization of design- tools ensures and-test innovation of externalization that a wealth business The options will grow. a prof- is not to make goal, however, internal techniques; it’s selling it by ecosystem, to alter the innovation and more safer, making it easier, for suppliers and cus- advantageous tomers to take a chance on one — and to learn far work another’s and them- about each other, more bargain. in the selves, to tools nizations must add value designed, developed, already they’ve compa- do this, To and deployed. nies need to audit the very tools they most take for granted and see — or whether — they should how That kind of intro- be externalized. spection may be the most customer- a company oriented innovation can make. Michael Schrage is the ([email protected]) of the MIT Media Lab’s codirector senior advisor to Initiative, e-Markets the MIT Security Studies program, and the author of 1999). School Press, Business vard Of course, many companies course, Of a recalls Hippel von Professor These free simulators proved to proved simulators These free appeared nowhere in the bank’s nowhere appeared was It R&D budget or prospectus. only a tacit, not an explicit, locus of creation. value the idea of bringing in cus- resist partners. Eric tomers as innovation head of the Innovation Hippel, von at the Group and Entrepreneurship Technol- of Institute Massachusetts School of Management, ogy Sloan that internal innova- hypothesizes view customer inno- tors frequently who might under- as rivals vators role. mine their creative chemical company that devised a to calculate which program software most appropri- forms of plastic were ate for packaging such different meats, foods as strawberries, fresh “I told them vegetables. and frozen that program that they should share risks,” acknowledges one former acknowledges risks,” and Salomon Sachs Goldman frankly, “But, executive. Brothers fully trust us or either they didn’t until we wasn’t It our simulations. started them the simulation giving that they used ourselves tools we took us seriously.” innovation be the most profitable derivatives Sachs that the Goldman clients began launched. Soon, group and derivatives asking for custom instruments. “With-other tailored would out the simulators, customers what to ask for, known have never thought to have never would and we Yet, the bank executive. ask,” recalls despite its success, this innovation Cisco, P&G, and Goldman Sachs Cisco, modeling their computer share techniques with customers. Cisco’s example may not be example may Cisco’s top investment The world’s would the early days, we “In typical, but neither is it rare. Procter neither is it rare. typical, but some to share has begun & Gamble and modeling of its computer techniques with research market and other distri- Tesco, Wal-Mart, This includes the bution channels. of truth” celebrated P&G “moment which tracks consumer research, times: when attitudes at two critical it is is chosen and when the product many of P&G’s be sure, To used. also rivals are biggest distributors labels, so private that offer their own risks to sharing this type are there platform of proprietary innovation are the rewards with them. But They include ongoing greater: even who often close ties with retailers, tools innovative their own share for analyzing (for example) how shelf space, and sign- layout, store decisions. purchase age influence and these manufacturers Together, a relationship can develop retailers that transcends any particular inno- tool or technique. vation peddle banks, meanwhile, profitably worth of tens of billions of dollars’ complex financial instruments, such as synthetic securities and deriva- sophisticated Even everytives, year. 1000 customers, such as Fortune companies and hedge funds, are to often understandably reluctant take a chance on new financial give the banks now instruments. So their customers the same computer- test- and “stress tunnel” “wind ized quan- algorithms that their own ing” to design used analysts have titative in the first place. the products run simulation after simulation demonstrating that our instruments would help them better hedge their empathetic to customer needs and customer to empathetic constraints.

comment leading ideas 4 comment leading ideas 5 In the face of such obvious need of such obvious the face In multi- a well-planned Second, both techni- are levers The hard kets of their corporate headquarters their corporate kets of to 66 per- 45 percent has risen from is likely to increase, share That cent. R&D sites of the with 77 percent years next three the planned over China or India. slated for networks to disperse innovation compa- can despite the risks, how their configure that they nies ensure they newcost? First, for networks only two are can accept that there add a node: 1) to to reasons valid access critical knowl- cost-effectively otherwiseedge that could not be tapped, and 2) to locate capabilities better, results they can deliver where and cheaper than anywhere faster, with Compared else in the network. networks, traditional innovation consciously more these leaner, 37 can achieve designed networks and time-to-market faster percent according 24 percent, costs by lower to estimates based on the aggregate experience of survey participants. In is a morale benefit addition, there when each R&D site has clear and stimulating responsibilities to do. work needs organizational site network tools to foster innova- and processes geog- tion and collaboration across and organizational raphies, cultures, silos. The innovators” “technology in our survey — those who seek to and to introduce be first to market technologies — use a breakthrough to and soft levers number of hard that their global networks ensure maximum value. deliver the tech- cal and organizational. On nical side, they include common and component architec- product as communication platforms tures lan- global teams a shared that give guage to foster collaboration. On The survey who respondents, and suffer the same problems. and suffer the same is R&D structure Company B’s but it is not productive, clearly more network Its necessarily ideal either. limiting its might be too compact, max- that could access to knowledge Thus, to its performance.imize practices for identify principles and a truly inno- well-designed creating Booz Allen Hamil- network, vation ton and INSEAD, the international business school, surveyed R&D leaders in 186 companies in 19 The survey results, nations in 2005. experience, suggest and our own one central truth: Organizations their benefit when they configure for cost and networks innovation an in- (For manage them for value. depth look at the survey see results, www.strategy-business.com/media/ file/global_innovation.pdf.) together account for nearly 20 corporate R&D of global percent clearly understand the expenditures, arise in overseeing that problems disadvan- a bloated, competitively They network. taged innovation named what they view as the pri- mary R&D challenges: assessing the encourag- of newvalue knowledge, and cross-functional ing cross-site collaboration, managing the com- and opti- plexity of global projects, They footprints. mizing innovation that having a also emphasized is R&D network well-managed becoming particularly advantageous as companies expand R&D beyond 1975 and Between their home turf. 2005, the survey of found, the share R&D sites located outside the mar-

onsider the two faces of the onsider the two faces move- global innovation having ment. Company A,

Company B, on the other the number expanding Because net- global innovation Most Global R&D Network Global The Well-Designed The by Thomas Goldbrunner, Yves Doz, Yves by Thomas Goldbrunner, Wilson and Keeley

grown through acquisition, pro- acquisition, through grown for multiple duces multiple brands and operates a worldwide markets product and research of network centers. Each of its development R&D sites was initially responsible brands and local market, for its own but with globalization these distinc- their importance. lost tions have hand, was built largely through and has two global internal growth operates one primary brands. It R&D center supported a hand- by ful of special-purpose sites around sparse This comparatively the world. helped Company B has network win wide admiration for the effi- ciency of its engineering. exponentially of nodes in a network it is not sur- its complexity, increases R&D prising that Company A’s to oper- expensive is more structure ate. Company A has considered closing some sites, but has resisted doing so because it fears losing capa- bilities and insights, and roiling incre- Meanwhile, local markets. chipped mental budget cuts have away at engineer and supplier to built its network morale. Having with associated the value maximize to forced access, it is now market for cost. manage the network — look like Company A’s works C

su 43 issue strategy+business (Harvard Busi- (Harvard From Global to Meta- Global From Inno- Managing Global ([email protected]) is ([email protected]) (Palgrave, forthcoming 2007). forthcoming (Palgrave, Also contributing to this article was this article to Also contributing President Vice Hamilton Booz Allen the who leads Veldhoen, Steven on research INSEAD–Booz Allen innovation. global Seventy pronounced: more even con- now is of the market percent just 35 companies, by trolled than 120 com- with more compared high-profile panies in 2000. Such acquisitions recent deals as Oracle’s left have and PeopleSoft of Siebel to choose from, only two vendors for top-tier inte- and SAP, Oracle grated suites. Thomas Goldbrunner Thomas is a ([email protected]) in Hamilton Booz Allen principal with specializes in helping Munich who man- their innovation clients improve development product agement and in the automo- primarily capabilities, industries. and high-tech tive Doz Yves Tech- of Global Professor the Timken at INSEAD in and Innovation nology He is the France. Fontainebleau, and Peter with José Santos coauthor, Williamson, of national: Companies Win in the How Economy Knowledge 2001). School Press, ness Wilson Keeley is a ([email protected]) at the international fellow research school INSEAD. She is business Doz and Peter with Yves coauthor, Williamson, of vation + onsolidation may soon ren- der the enterprise software industry unrecognizable. Global innovation networks are networks innovation Global A truly lean global innovation Five years ago, 11 companies ago, 11 years Five full development capabilities to be capabilities full development it place to work; an interesting a example, be designated could, for for a particular excellence center of or technology. process the emerging an integral piece of system, but international economic real that deliver networks creating painstak- thorough, requires value All too often, ing consideration. ill-defined eco- managers pursue when value nomic and political their inno- and expanding creating to provide or fail networks, vation and common processes the shared need to excel. language the networks operates with seamless that network and cul- borders efficiency across The beautiful thing. is a rare, tures — cost-effec- levers most powerful well-designed node location, tive platforms, an development product culture, global innovation-friendly set of incentives and a well-aligned to all companies. available — are put all of companies so rarely But such an them together that creating is undeniably a network effective and a notable achievement, towering in itself. example of innovation controlled 90 percent of the data- of 90 percent controlled In only six do. now base market; is business applications, the trend by Mitch Rosenbleeth, by Mitch Rosenbleeth, Corrie DeCamp, and Stephen Chen The Coming Enterprise Shakeup Software C The soft levers are geared are The soft levers of choice in this The levers toward evoking and sustaining a and sustaining evoking toward and culture healthy innovation talent. attracting and developing generally agreed respondents Our depends that successful innovation who can work on team members envi- culturally diverse in effectively only the technology Yet ronments. that they view report an innovators as a pre- international background for a senior management requisite the technol- only Accordingly, role. effort put significant ogy innovators cross- employees’ into developing cultural leadership skills. incen- financial and career are regard in staff to work to encourage tives fact, few geographies. In different as factors operate as powerfully influence and reshape to incentives and work organizational culture it appears that practices. However, organizations need to do much more with their to align their incentives strategies. Although innovation viewed accessing most respondents as central to innova- new knowledge tion success, few had deployed surpris- to supportincentives it. Not sites, then, low-value-added ingly, such as those that do nothing but customization, often local-market (This talented staff. struggle to retain challenge is especially acute in mar- One kets like China and India.) these sites “up solution is to move by food chain” the innovation complex re- assigning them more sponsibilities. A site need not have the organizational side, globally side, organizational the and struc- roles, aligned processes, as important; seen also are tures cross-location viewed vital were as pipe- to manage steering committees portfolios,lines and and informa- 24/7 flows tion systems that enable ideas, and designs. of knowledge,

comment leading ideas 6 Looking solely at the econom- ics, software buyers will be the short-term losers from this merger activity. With fewer companies vying for sales, the industry’s tradi- tional 80 percent discounts, which large companies can count on for volume purchases, will be a thing of the past. More commonplace will be 50 percent off list price. Initially, higher prices will hurt the purchasing companies that depend on enterprise software to coordinate their activities. But in the long run, pricing pressure could change the dynamics of the buyer–supplier relationship and ini- tiate a profound shift in how soft- ware is delivered and in the types of programs companies implement. As software prices rise, many chief information officers (CIOs), particularly those at medium-sized companies, will be unable to afford the huge, one-time hits caused by the purchase of licenses for large programs like enterprise resource planning (ERP) or customer re- lationship management systems. Instead, they will seek to vary their costs so that their IT budgets grow and shrink along with their needs. That will increase the popularity of subscription pricing, in which com- panies pay annually for software licenses and reevaluate each year how many software “seats” they require. About 25 percent of soft- ware is already sold by subscription; that’s likely to increase to more than 50 percent in the next four years. This approach will also speed ac- ceptance of “,” which lets customers access pro- grams via the Web and pay for only the amount of time they use the software. Higher prices could also energize the push to , especially for smaller companies.

su 43 issue strategy+business + Software purchasers may indeed purchasers Software higher prices changes the equation the prices changes higher customers of enterprise enough that to- band increasingly will software deals demand both better gether and industryfor their and customized the large suites that meet add-ons to their sector. of specific requirements in But pay a price for consolidation. could cost the end, consolidation suppli- software the large enterprise short-term a gain ers the most. For they may end up having in revenue, land- to adjust to a new software customer scape that emphasizes efficient deliveryflexibility; more the mechanisms; open standards; niche data-centric rise of smaller, simplicity. applications; and greater who under- purchasers Software of the stand this and take advantage opportunity changing to leverage industry the will have dynamics most to gain. Mitch Rosenbleeth is a ([email protected]) Hamil- with Booz Allen president vice on based in Dallas. He focuses ton companies for strategies technology and retail products in the consumer industries. Corrie DeCamp is a ([email protected]) with Booz Allen senior associate in Dallas. Ms. DeCamp Hamilton technology specializes in information and retail products consumer for companies. Stephen Chen is a senior ([email protected]) Hamilton with Booz Allen associate based in Dallas. Specializing in - Chen works Mr. mation technology, in the consumer with companies and financial- automotive, products, industries. services Pricing concerns will drive more concerns will drive Pricing In response to this demand, as to this response In degrees of success). The most inven- of success). degrees companies software marketing tive their products, will rapidly improve making them capable of providing quick- granular analysis more more also ensuring that these and ly, integrate with cus- easily programs of The upshot ERP systems. tomers’ these activities will be a greater platforms emphasis on standardized and soft- combined with hardware making it easier to flexibility, ware and change suppliers, programs, outputs as business conditions shift. buyers. cooperation among software CIO consortiums been tried in have the past, but they often failed; if a good company could cut a pretty on its provider deal with a software was little justification to there own, get similarly advanta- help a rival of the prospect geous terms. But multiple, fragmented sources. sources. fragmented multiple, are companies smaller software ones, and as larger up by swallowed into migrate top-tier applications information systems, content-rich survivors will the most innovative newdevelop industry-specific niche and trans- that analyze programs so that it can time form data in real example, many be acted upon. For companies have consumer products custom solu- on historically relied of effectiveness tions to assess the and cus- promotions their store Today, tomer discount programs. being incor- these applications are porated into ERP and business (with varyingintelligence software

In reevaluating their costs and their costs reevaluating In for simpler solu- This search

tions and greater adaptability will tions and greater feed into another noteworthy change in the enterprise software industry call we — something will trans- which “data-centricity,” a manager of form the CIO from infor- of critical data into a provider exam- mation to the business. For is stripped down, ple, as software as it, value greater data takes on even not the application, points the way The software to the next innovation. suites, ERP systems, and business at excellent are programs process managing, manipulating, storing, not data, but they are and moving the insights equipped to produce to outdo the competition required activities of in the day-to-day work a data-centric organization. CEOs them demanding data that gives are an end-to-end view of the enterprise — that is, data integrated from seeking alternatives, CIOs will also CIOs seeking alternatives, the grow- to overcome ways explore sys- of their legacy ing complexity in complexity reducing tems. By portfoliosapplication by — that is, programs eliminating redundant acquisition data and refocusing on information activities specifically competitiveness needed to enhance in can rein — these executives the and increase maintenance costs amount spent on new development. architec- will demand CIOs Many their enterprise tural flexibility from the to minimize providers software expense of adding and decommis- sioning applications. information to the business. information the CIO into a provider of critical the CIO into a provider “Data-centricity” will transform “Data-centricity”

comment leading ideas 8