WORKPLACE:

four ways to improve your

it value measurement
www.cioinsight.com
May/June 2011
No. 117
Strategic Tech
Expert Voices
Managing a
Multigenerational Workforce
Through a combination of policies, programs
and tools, its possible to engage all of your
organizations employees.
Yum! Brands Dickie Oliver
Collaboration tools encourage the ideas that
enhance business at the companys KFC,
Pizza Hut and Taco Bell restaurants.
Exclusive
Research:
IT Investment Trends Study: Infrastructure Back in the Mix
In recent years, the recession has fueled cost reductions that pulled IT budgets
away from business-technology basics. Our latest study reveals howand
whyspending is returning to these areas.
The Voice of the CIO Community
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might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at www.ibm.com/legal/copytrade.shtml. International Business Machines Corporation 2011.
Smarter business for a Smarter Planet:
Go inside the minds of over 3,000 leading CIOs.
With a unique, end-to-end view of their businesses, todays CIOs are a driving force behind what makes
companies work smarter. Its critical, as one CIO put it, to ensure you understand the vision, have a clear
strategy and execute where the business wants to go. This is one of the many insights uncovered when we
met face-to-face with over 3,000 CIOs to create The Essential CIOthe largest study of its kind to date.
This latest edition of our ongoing C-suite Studies series reveals how CIOs from different-sized companies
across the globe have become more aligned to CEOs, and are using IT innovation to drive real business
results. More than just a collection of thoughts, The Essential CIO is a guide to building a smarter organization.
A smarter business needs smarter thinking. Lets build a smarter planet.
Get The Essential CIO: Insights from the 2011 IBM Global CIO Study.
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May/June 2011
Number 117
executive briefing
Analysis & Insights | 8
Find out what cloud computing will
look like in 2016, and see which skills
matter most in todays IT world.
exclusive research
IT Investment Trends Study | 15
By Guy Currier
IT infrastructure is back in the budget
mix in a big way this year. Our latest
study of IT investment trends shows
how and why spending is returning
to the business technology basics.
strategic tech
Managing a Multigenerational
Workforce | 22
By Sam Greengard
Through a combination of policies,
programs and tools, its possible to
engage all employees and build a
robust, motivated workforce.
workplace
How to Improve IT Value
Measurement | 26
By Brian Barnier
Do your IT portfolio categories match
up with the investment directions
shared by your CEO and CFO at the
past few investor conferences?
expert voices
Delicious Collaboration | 28
By Dennis McCafferty
Dickie Oliver, vice president of global
IT, for restaurant chain Yum! Brands,
tells us how collaboration tools have
encouraged new ideas for its KFC,
Taco Bell and Pizza Hut franchises.
books
Excerpts & Highlights | 32
CIO Insight editors share the best
business books to boost your CIO IQ.
Its no longer possible to build a fortress. You have
to ... protect your digital assets while allowing
employees to use the device of their choice.
Patricia Titus, vice president and CISO, Unisys
see policy matters at unisyspage 25
whats on the cios mind?
Research Roundup | 31
The ever-expanding data center,
succession planning and backdoor
mobility are among your priorities.
hot topics
Best of Blogs, Tweets and Social
Networking Commentary by, for
and About CIOs | 34
How to jump-start a new CIOs career,
the story of Amazons first employee,
14 big ideas and fears about cyber-
warfare are up for discussion.
opinion
Leading The Way | 6
Getting Back to Basics
By Susan Nunziata
A successful IT operation is much more
than the sum of its technology parts.
Thought Leadership | 12
See what USTA CIO Larry Bonfante,
AXIS Capitals John Parkinson
and Columbia Universitys Dr. Art
Langer have to say on the topics of
IT investments, where old data goes
when it dies, and how to best prepare
our next-generation IT leaders.
Inside the C-Suite | 20
Mixing Business & IT
By Marilyn Weinstein
Your entire IT organization must
know the business inside and out.
EDI TORI AL
Editor in Chief Susan Nunziata
CONTENT SERVI CES
Managing Editor Eileen Feretic
Managing Editor, Rick Dagley
Editorial Production
Senior Editor Jennifer Lawinski
CREATI VE SERVI CES
Creative Director Steve Raia
Production Designer Michael Wirtz
Designer Walter Makarucha Jr.
Senior Production Manager Bill McMahon
Video Producer Ashley Daley
Columnists Larry Bonfante, Arthur
Langer, John Parkinson
ADVI SORY BOARD
Ramon Baez, CIO, Kimberly-Clark; Mark Halloran, Former CIO, Medco
Health Solutions; Rebecca Jacoby, CIO, Cisco Systems;
Arthur Langer, Professor, Columbia University; John Parkinson, Former
CTO, TransUnion; Trisha Rozas, CIO, Guy Carpenter;
Tony Scott, CIO, Microsoft
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CONTENTS
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The online brand requires a completely
different internal culture and way of
doing business.
Kristy J. Folkwein, VP and CIO, Dow Corning, on
the companys e-commerce strategy
tinyurl.com/3l25ycz
We were somewhat pushed into supporting
the Apple product line because of our users.
Gary Coverdale, CISO and assistant CIO, Napa County,
on the government agencys decision to support
iPhone and iPad users in its workforce
tinyurl.com/3wcen28
We wouldnt know whether what we were
doing was working if we didnt have the
business intelligence software.
Dr. James Holly, CEO and de facto CIO, Southeast Texas
Medical Associates, on using business analytics
to improve patient care
tinyurl.com/4xbej95
Its essential for all CIOs to manage,
but also [to] have initiatives under way
to accelerate the business.
Pat Toole, VP and CIO, IBM, on the role of the CIO
tinyurl.com/3zeb3hs
LEADING THE WAY
CIOINSIGHT | MAY/JUNE 2011 6 www.cioinsight.com
after the past several years spent slicing into it infra
structure budgets, were pleased to see enterprises investing
in technology basics in 2011. Our exclusive research study of
IT budgets and spending patterns shows that certain IT fun-
damentals, having been neglected during the Great Reces-
sion, are once again budget priorities (page 15). Author Guy
Currier notes: The enthusiasm the recession brought to
cloud and virtualization technologies added to the infrastructure backlash, as
organizations found that some pre-cloud, pre-virtualization technologies needed
shoring up in order to function in todays environment.
Breaking down the dollars spent on equipment and solutions is but one way of
looking at your IT investments. The next questions to ask are: How are you invest-
ing these resources, and what impact are they having on helping your organization
succeed, says Larry Bonfante, CIO of the U.S. Tennis Association (page 12).
A successful IT operation is much more than the sum of its technology parts. At
the end of the day, its always about people. How we nurture our up-and-coming
talent and groom our next generation of IT leaders is just as important as which
new application, solution or server we choose to buy. Dr. Arthur Langer of Colum-
bia University raises concerns about a serious lack of succession planning among
CIOs, and he gives us a game plan for cultivating the best and brightest among our
workforce (page 14).
Managing that multigenerational workforce is no easy task, and CIOs in particu-
lar bear the brunt of the technology generation gap. Understanding and accommo-
dating the workplace expectations of your Gen Y employees while respecting the
work ethics of their Gen X and Boomer teammates is a challenge.
Conventional thinking has always been that the younger workers adapt to the
tools and systems an organization already has in place. But this business model no
longer applies. The rules are being rewritten on the fly. So said Andrew McAfee,
associate director and principal research scientist at the Center for Digital Business
at MITs Sloan School of Management to our writer Sam Greengard in the article
Managing a Multigenerational Workforce (page 22).
With all of these forces at play, running a successful IT operation in todays eco-
nomic and social environments requires a good bit of alchemy. Its up to you to turn
limited budget dollars into business gold.
Youre expected to be at the ready with magic techie cure-alls that will make the
most of your youngest workers penchant for mobility and collaboration. And youre
the one who has to lay the foundation for the future by doing all you can to culti-
vate and retain talented people, while also firming up the IT infrastructure that will
carry your organization forward. n
Getting Back to Basics
Susan Nunziata, Editor in Chief, CIO Insight
Running a
successful IT
operation in
todays economic
and social
environments
requires a good
bit of alchemy.
Its up to you
to turn limited
budget dollars into
business gold.
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CIOINSIGHT | MAY/JUNE 2011 8 www.cioinsight.com
Cloud Computing 2016
W
ith cloud computing at a critical cross-
road, research from Gartner cautions CIOs
to manage inherent risks and unexpected costs
during what is expected to be a technology revo-
lution. The research examines key issues driving
cloud adoption, and seeks to separate reality
from hyperbole with respect to cloud comput-
ing. Gartner predicts that enterprises will spend
$112 billion over the next six years, cumulatively,
on cloud-related technologies such as software as
a service (SaaS), platform as a service (PaaS) and
infrastructure as a service (IaaS).
In the end, Gartner concludes that cloud com-
puting is, indeed, the future. The hype around
cloud computing services has increased interest,
as well as caution, for CIOs trying to determine
where, when and if cloud services can provide
valuable outcomes for their businesses, says Frank
Ridder, research vice president at Gartner. Cloud
computing is driving discontinuity that introduces
exciting opportunities and costly challenges. Orga-
nizations need to understand these changes and
develop realistic cloud-sourcing strategies and
contracts that can reduce risk.
Gartner finds that cloud computing may actu-
ally elevate the leadership profile of the CIO. Thats
because it requires more steering (as opposed to
rowing) within the organization. However, the
research firm predicts that several key enter-
prise functions will be outsourced as a result.
These include enterprise social networks, next-
generation mobile applications, multiple-enter-
prise collaboration services and social-intelligence
applications. Ultimately, Gartner finds that cloud
culture will affect the enterprise in three key ways:
enabling smaller, shorter projects to be
undertaken than previously possible;
fostering increased use of open-source and
low-cost proprietary development tools; and
introducing a young talent pool accustomed
to working with these new tools. n
How Well Do You Speak Cloud?
D
o you know your Django from your Hadoop?
If youre finding yourself overwhelmed by
cloud jargon, fear not. Theres a very CIO-friendly
glossary provided in the book Building Applications
in the Cloud: Concepts, Patterns and Projects (Addison-
Wesley Professional, 2011).
Author Christopher Moyer provides insights that can
help managers maximize the value of their cloud appli-
cations. Here, we offer translations of eight of the most
common cloud terminologies featured in the book.
Django: This is an open-source Web app framework
written in Python.
Hadoop: This is a specific implementation of the
Map/Reduce pattern implemented in Java.
Infrastructure as a service (IaaS): This type of cloud
service is a subset of hardware as a service and is most
likely to involve sharing products such as firewalls or
VPN hardware.
Open authorization, or oAuth: This open standard
allows users to share private resources stored on one
site with another site, without having to hand out
credentials, user name or password. (This is widely
used by Twitter.)
Web Service Gateway Interface (WSGI): This is a
popular framework for writing Web applications that
are language-independent. It defines how headers,
data and URL parameters are passed into a script, no
matter what language theyre written in.
Horizontal scaling or scaling out: This method
of scaling requires you to add more machines to
your app, as opposed to adding hardware to the
same machine.
DNS Safe: This guideline requires you to use only
lowercase alphanumeric characters, starting with
a letter, and dashes in domain names. (And dont
even think about using underscores, because they
are not supported.)
An auto-scaling group: This is a set of instances that
all perform the same function, and allow for more
instances to be added in order to scale out. This type
of configuration automatically scales up or down
based on a pre-specified set of triggers provided, such
as CPU utilization. (Got all of that?) n
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CIOINSIGHT | MAY/JUNE 2011 10 www.cioinsight.com
Hiring Trends: Compare & Contrast
Top tech skills in demand, Top tech skills in demand,
worldwide (percent respondents): United States & Canada (percent respondents):
Business analysis 35% Enterprise architect 69%
Enterprise architecture 34% Cloud architect 67%
Project management 30% Business intelligence specialist 59%
Technical architecture 28% Security specialist 58%
Change management 22% Network architect 55%
SOURCE: Harvey Nash/PA Consulting Group, State of the CIO SOURCE: TEKsystems/Inavero Institute, 2Q 2011 IT Executive Outlook
(more than 2,500 senior tech executives polled worldwide) (more than 1,000 IT decision-makers polled in the United States and Canada)
H
ow much are you paying your IT employees? If
youre like the majority of CIOs nationwide, its not
much more than you were paying at this time last year.
Unfortunately, this same trend applies to the amount of
money that companies are willing to pay CIOs, accord-
ing to the 2011 IT Salary Survey from Janco Associ-
ates. Organizations are looking to keep costs down
by increasing the number of part-time and contract
employees they use. Theyre also asking IT professionals
to pay a growing share of health care benefits.
CIOs and other senior tech managers are also
seeking alternatives to traditional hiring, according
to a survey from Harvey Nash Group and PA Consult-
ing Group. While many do stick to recruiting full-time
local employees, the Harvey Nash survey finds that
76 percent of respondents use flex work optionssuch
as contractual employees, temps and offshore talent
to account for up to one quarter of their entire staff.
CIOs are facing new challenges presented by a
world which is increasingly mobile, using social-net-
working tools to transact and communicate, says
Albert Ellis, CEO of Harvey Nash. Technology leaders
have to deal with the two main priorities from the CEO:
driving innovation, particularly in the mobile applica-
tions area, while continuing to manage costs. The result
is an increased dependence on a flexible, multisourced
environment. More than 2,500 senior tech execs world-
wide took part in the Harvey Nash survey.
Yet another study, from technology staffing and
service company TEKsystems, finds that some compa-
nies are starting to invest in IT hiring. The companys 2Q
2011 quarterly IT Executive Outlook survey, conducted
in partnership with the Inavero Institute and released
April 28, 2011, showed that 36 percent of IT leaders
planned to add contingent IT headcount in 3Q 2011, and
41 percent planned to add permanent IT headcount
in the same period. The quarterly TEKsystems survey
polled more than 1,000 IT decision-makers in the United
States and Canada in March 2011.
When it comes to compensation, the Janco survey
finds that IT managers are more receptive than ever to
concepts such as flexible hours and customized work
schedules. More than 980 executives took part in the
Janco survey, conducted in partnership with eJobDe-
scription.com. Here are some of the reports highlights:
$184,681 is the mean compensation for CIOs in
large enterprises in 2011, up 1.73 percent over 2010.
$163,106 is the mean compensation for CIOs
in midsize enterprises in 2011, up a mere 0.49
percent over 2010.
$77,873 is the total mean compensation for all IT
professionals in 2011returning salaries to levels
seen in January 2008.
$82,273 is the mean total compensation for all IT
positions in large enterprises in 2011, up from
$81,493 in 2010.
$74,253 is the mean total compensation for all IT
positions in midsize enterprises in 2011, up from
$73,934 a year ago. n
Executive Briefing is compiled by Susan Nunziata and fea-
tures reporting by Dennis McCafferty and Don Reisinger.
IT Hiring Trends
EXECUTIVE BRIEFING:
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CIOINSIGHT | MAY/JUNE 2011 12 www.cioinsight.com
THOUGHT LEADERSHIP
Investing in IT
By Larry Bonfante
Over the past three
years, my operating
budget has been re-
duced by 20 percent.
This is the type of
thing that sends many
CIOs into a tizzy: How
am I supposed to do so much more with so
much less?
But, for us, this reduction was voluntary.
At the United States Tennis Association
(USTA), we have been able to
find innovative ways to lever-
age what were, at the time,
leading-edge approaches to
lower our ongoing costs on the
utility side of IT.
For example, we imple-
mented a software as a service
(SaaS) model for delivering
email. This reduced the oper-
ating expenses involved in
upgrading and managing
email software, while lower-
ing the ongoing capital invest-
ment required to build out an ever-larger
store of email messages.
We were also an early adopter of the
public cloud, moving many of our non-
consumer-facing systems into the cloud.
(We are Amazon clients, and we survived
the spring 2011 outage, by the way.) Our
move to the cloud lowered our hosting costs
for these back-end systems by 70 percent.
These reductions in our ongoing oper-
ational costs allowed us to focus on what
really mattered for the USTA. As operating
costs decreased, we were able to reappor-
tion funds into capital investments, which
stoked the innovation engine. We were able
to develop an enhanced suite of capabilities
for our players, which have revolution-
ized their online tennis experience. Its even
allowed us to launch our first set of iPhone
apps for engaging in our leagues and tour-
naments. We were also able to develop a new
Web presence for parents of young children
who want to get their kids involved in play-
ing age- and equipment-appropriate tennis.
We have had a laser focus on understand-
ing what matters for the USTA, thereby
investing our limited financial and human
resources into the things that will drive
tangible business value for the organiza-
tion. This has resulted in 100 percent of our
business-focused technology projects being
approved and funded.
Many CIOs complain that their budgets
are operationally heavy. Ive heard numbers
as high as 80 percent for operations and
20 percent for new project innovation. Our
mix is a much healthier 60/40, with a twist:
For us, 60 percent of IT dollars are invested
in innovative capital projects that are driving
business value by accomplishing mission-
based objectives for the organization. Our
ongoing operational costs for the utility
portion of IT (i.e., network, help desk, host-
ing, etc.), take up a more modest 40 percent
of the IT dollars spent in any given year.
Many organizations look at IT spend as
opposed to IT investment. The real ques-
tions to ask are not how much you spend on
IT, or whether your overall budget is going
up or down. The real questions are: How
are you investing these resources, and what
impact are they having on helping your
organization succeed? n
Larry Bonfante is CIO at the United States Tennis
Association and founder of CIO Bench Coach, LLC, an
executive coaching practice for IT executives. He is also
author of Lessons in IT Transformation, published
by John Wiley & Sons. He can be reached at Larry@
CIOBenchCoach.com.
3 Top IT Investment Categories
(percent respondents who plan to
increase spending in 3Q 2011)
47%
Infrastructure services
42%
Applications services
37%
Education/training services
Source: TekSystems/Inavero Institute, 2Q 2011 IT
Executive Outlook (more than 1,000 IT decision
makers polled in the U.S. and Canada)
www.cioinsight.com 13
THOUGHT LEADERSHIP
MAY/JUNE 2011 | CIOINSIGHT
Old Data
Never Dies
By John Parkinson
what do you do with
data stored on disks that
have passed their use-
ful life and need to be
replaced and recycled?
A modern disk drive is supposed to have a
mean time between failure (MTBF) in the range
of 100,000 hourswhich would mean about
a decade of average use. But all the research
reports Ive seen (and my own experience) indi-
cate that most storage array drives will need to
be replaced about every four years (with some
small percentage failing sooner). Laptop and
desktop drives rotate every three years or so.
Depending on the actual duty cycle expe-
rienced, a three- or four-year-old enterprise-
class drive (which should have been tested to
higher tolerances than are consumer drives)
could have an additional five or six years of
useful life, so theres an obvious temptation to
refurbish the drive and sell it into the second-
ary market for reuse. If that happens, you really
dont want your data to still be there when the
next owner plugs in the drive.
Failed or truly end-of-life drives should be
recycled (theres recoverable value in the rare
earth metals used in their construction) rather
than turned into landfill scrap. But, if theyre
going to leave your control with your data
still on them, youd better be sure that youre
working with someone who will do one of
two things: reliably wipe them to the point
at which the data cant be recovered or recon-
structed, or guarantee that the storage platters
will be destroyed during the recycling process.
You could do the wiping yourselfeither
with certified software or via magnetic era-
surebut that takes time and can require spe-
cial equipment. Its often easier and better to
hire a specialist to do that work. While many
recycling specialists indicate that they will do
the work for you, its amazing how often the
devices (and, therefore, the data) entrusted to
them turn up in the reuse market rather than
being recycled as was promised.
Then there are the challenges associ-
ated with the increasingly common use of
solid-state drives (SSDs) in both PCs and stor-
age arrays. The latest research indicates that
there might not be a totally reli-
able way to wipe an SSD. Because
of the way the device works, the
data stored there will have been
migrated several times during the
life of the drive. The drive design
does not allow the old locations
to be accessed once they are no
longer in active use. So the low-
level software tools that wipe
regular hard disks sector by sector
(or block by block) will only wipe
the currently active storage loca-
tions on an SSD. Magnetic erasure
doesnt work very well, either.
One reason its hard to find a reliable ser-
vice provider to deal with the secure wiping
or recycling of drives is that there arent actu-
ally that many specialists. In many cases, its
just one service line among many offered by a
given vendor. The good news? Theres increas-
ing recognition that this is a real need and that
it takes a specialist to meet it. As the technol-
ogy recycling and reuse industry matures,
service providers will emerge that understand
the problem and have an appropriate solution.
Until then, look carefully to find the few
service providers that know what theyre
doing and actually do it right. n
John Parkinson is the head of the Global Program
Management Office at AXIS Capital. He has been a technol-
ogy executive, strategist, consultant and author for 25 years.
Send your comments to editors@cioinsight.com.
Where Do All the
Data Come From?
(percent respondents)
Email ...................................................... 72%
Word documents ................................ 46%
Spreadsheets ....................................... 36%
Customer databases .......................... 33%
Presentations ...................................21%
Web portals/corporation sites......... 20%
Instant messages................................ 13%
Source: Kelton Research for Avanade, The Busi-
ness Impact of Big Data, November 2010 (More
than 540 CIOs, IT decision-makers and C-level
executives polled in 17 countries)
CIOINSIGHT | MAY/JUNE 2011 14 www.cioinsight.com
THOUGHT LEADERSHIP
Next-Gen
IT Leaders
Dr. Arthur Langer
it appears that the
CIO role is more impor-
tant than ever before.
In fact, a number of
executives have articu-
lated to me their concerns that the CIO talent
pool appears to be very shallow, that the same
people are mentioned when new CIO oppor-
tunities become availableand that those
positions will be available this year, for sure.
It is clear that the profession needs to start
thinking about the next generation of talented
CIO leaders. That responsi-
bility lies with our existing
leadersleaders who need
to prepare for the education
and development of their
most talented staff.
The problem is, we are
not seeing enough invest-
ment. Corporations have
continued to cut education
budgets. For example, in the
Masters degree program
in Technology Management
at Columbia University, we
see little increase in applica-
tions. Not enough future stars are investing
in their education and may be ill-prepared for
the challenges that lay before them. On top of
that, new CIOs cannot learn the job solely by
studying those who came before them. Fur-
ther, the candidate pool lacks diversity, espe-
cially in regard to women in IT.
Far more ominous is the lack of interest
in becoming a CIO. There are too many neg-
ative discussions taking place at the confer-
ences I attend, punctuated with the persistent
joke that CIO stands for Career Is Over. If CIOs
themselves are not excited about the role, who
will venture to take it on in the future? Sim-
ply put, our CIO leaders need to accelerate the
search for their successors. They need to create
a pool of potential future stars. Below are some
of the talent-nurturing options to consider:
Rotational Programs: Put your star man-
agers in six-month roles in the business
units. This allows them to become knowl-
edgeable about the operational aspects of the
business and gives them exposure, so they
become known across the organization.
Education: Continuing education and con-
ferences are fine. Also allow managers to
enroll in part-time degree programs where
they get exposed to a broad education and
can network with other executives. A com-
mitted degree program nurtures a critical,
reflective thinker who can plan beyond the
day-to-day needs of the business.
Diversity: Diversity goes beyond legal and
corporate requirements. A pool of diverse
candidates offers broad knowledge and
enhanced decisions. Leaders must recruit and
retain more women and more candidates
with wide ethnic backgrounds.
Up and Out: Great companies develop tal-
ented workers and lose some of them; there
are only so many positions at the top. If you
provide the program, those who leave will
always remember itas I have from my days
at Coopers & Lybrandand some will return.
Talent development is a responsibility as
much as it is an investment. Being known as
an organization that invests in its people will
add to the prestige of your company. n
Arthur Langer is senior director of the Center for Technol-
ogy, Innovation and Community Engagement at Columbia
University, serves on the faculties of the Graduate School of
Business, the Graduate School of Education and the School
of Continuing Education. He is also Chairman of Workforce
Opportunity Services. Send your comments to editors@
cioinsight.com
Succession Planning Pitfalls
31%
portion of respondents who say
their company doesnt have a
succession planning program
50%
portion of respondents in senior
management (CEO, CFO, senior VPs)
who say their companies dont currently have
a successor designated for their role
27%
portion of respondents who
say their companies have been
adversely impacted financially because of
poor succession planning or a lack of it
Source: CareerBuilder (1,100 executives polled at
enterprises with more than 1,000 employees)
I
S
T
O
C
K
P
H
O
T
O
In recent years, recession-fueled cost reduction and
efciency-driving new technologies have pulled IT
budgets away from business-technology basics. Our
latest study of IT investment trends reveals how
and whyspending is returning to these areas.
BY GUY CURRIER
Hottest Budget
Areas Now
Getting Back to
Basics
The IT Budget in
2011
16
17
18
www.cioinsight.com MAY/JUNE 2011 | CIOINSIGHT 15
CIO INSIGHT
RESEARCH EXCLUSI VE
C
IO Insights latest IT Investment Trends study
shows renewed interest in the fundamentals of
the IT infrastructure. This is refreshing amid to-
days ethereal talk about clouds and virtual ma-
chines. Its also a reection of the uncertain economic state
from which businesses are slowly emerging and the muted
growth theyre experiencing.
In some cases, attention to the fundamentals means a
turn back toward computing hardware thats badly in need
of a refresh. In others, it means investing in half-neglected
infrastructure that is needed more than ever as a conse-
quence of those ethereal technologies.
Midrange enterprises (with 50 to 499 employees) had
to be most cautious during the downturn, but they now
have a strong focus on the basic areas. (See chart at right.)
In these enterprises, categories where the most organiza-
tions are increasing spending year-over-year are user PCs
(74 percent) and servers (72 percent).
In large enterprises, investment in systems did not
suffer as much as it did in midrange organizations in
recent years. Instead, budgets were increased for other
elemental IT areas, especially back-up and continuity.
Roughly a third of large enterprises say theyre increas-
ing budgets in each of these categories.
In 2010, most IT organizations spent more than origi-
nally budgeted on central technology needs, such as secu-
rity and email systems. (See Finding 1.1 on page 17.) Thats
because last years budgeting cyclewhich took place in
late 2009occurred before the economic recovery started.
In late 2009, companies were tightening many kinds of
investments. So, by second-half 2010, some areas of infra-
structure had become creaky, and upgrading became the
lower-cost option. As a result, organizations had to return
to pre-recession technologies theyd half forgotten.
The enthusiasm the recession brought to cloud and
virtualization technologies added to the infrastructure
backlash, as organizations found that some pre-cloud, pre-
virtualization technologies needed shoring up in order to
function in todays environment. This explains the over-
spending we see in the data center, encryption authentica-
tion, and systems management and support.
Large enterprises most frequently spent more than bud-
geted on business intelligence and data mining applica-
tions (54 percent), mobile devices (45 percent) and wireless
equipment (42 percent). In comparison, only 29 percent of
midrange respondents spent more than budgeted on mo-
bile devices. (See Figure 1.2 on page 17.)
Storage hardware remains on a steady upswing. (See
Finding 2 on page 18.) Thats being driven by intense conti-
nuity and upgrade needs that arise from newly virtualized
(and cloudy) environments.
Amid this discussion about infrastructures consequences,
we should give pride of place to the newest technologies.
Budgets for private clouds are expected to grow 23.5
percent in 2011, compared with 7.5 percent growth in
2010.
Budgets for cloud services are expected to increase
19.8 percent in 2011, versus 6.4 percent in 2010.
Budgets for IT automation are projected to increase
15.2percentin2011,versus3.3percentin2010.
Virtualization, while strong, did not see a signicant
uptick in spending from 2010 to 2011. This indicates that
the virtualization market has reached a maturity level.
Cloud computing has contributed to much higher desk-
top and notebook budgets in 2011: On average, enterprises are
expectingtospend21.3percentmorethanthepreviousyear.
The cloud has also led to sharp increases in 2011 spending
plans for desktop management (18.1 percent), applications
management (12.2 percent) and governance (11.6 percent)
compared with 2010. (See Finding 2 on page 19.) n
Guy Currier is senior editor/research for CIO Insight.
Hottest Budget Areas Now
Where the most enterprises increased spending in 2011.
LARGE ENTERPRISES (PERCENT OF RESPONDENTS)
Back-up/deduplication 67%
Continuity 66%
Mobile devices 65%
SFA/CRM apps 64%
Email/Web gateways 61%
MIDRANGE ENTERPRISES (PERCENT OF RESPONDENTS)
Desktops/notebooks 74%
Servers 72%
Identity management 67%
Mics. peripherals 64%
Private clouds 64%
ERP apps 63%
How We Conducted the Research
CIO Insights 2011 IT Investment Trends Study was eld-
ed May 17 to June 14, 2011, and was designed by CIO In-
sight in conjunction with the research division of Ziff
Davis Enterprise. A random selection from the com-
panys lists of readers and site visitors was emailed
invitations to participate. The study itself was conducted
online. In all, 470 respondents familiar with their organiza-
tions budgetary and spending levels completed the survey.
CIOINSIGHT | MAY/JUNE 2011 16 www.cioinsight.com
CIO INSIGHT RESEARCH EXCLUSIVE
CIO INSIGHT RESEARCH EXCLUSIVE
Finding 1
Getting Back to Basics in 2010
The economic recovery fueled a refresh cycle that saw renewed investment in the infrastructure. Certainly, crowd-
pleasing new opportunity areas such as business intelligence and public cloud services saw much more spending
than budgeted last year, particularly in large enterprises. But unlike in 2009 (covered in last years survey), a num-
ber of bread-and-butter budget areas saw renewed life in all sizes of enterprise, starting with back-up and email,
but including numerous business applications and security products as well. Midrange enterprises did retrench in
some systems-related spending, however.
1.1 Average Differences Reported Between 2009 Budgets and Actual Spending
N=123-140 N=120-128
LARGE ENTERPRISES MIDRANGE ENTERPRISES
Back-up/deduplication 6.9% Email/Web gateways 7.4%
BI/data mining apps 5.4% Authentication mgmt. 6.0%
Cloud services 5.2% Configuration mgmt. 5.8%
Supply-chain mgmt. 5.0% Security mgmt. 5.5%
Security mgmt. 4.8% SFA/CRM apps 5.4%
Firewalls/VPNs 4.7% Firewalls/VPNs 5.2%
Hosted data center 4.6%
IT mgmt./
support svces.
5.0%
Data center mgmt. 4.5% Identity mgmt. 5.0%
Encryption 4.4% Virtualization software 4.8%
IT automation 4.3% Content monitoring 4.8%
1.2 Budget Targets Most Frequently Missed in 2010 (percent respondents) Spent less than budget Spent more
N=126-140 N=120-125
LARGE ENTERPRISES MIDRANGE ENTERPRISES
BI/data mining apps Monitors
Wireless equipment Technical training
Mobile devices Help-desk systems
Virtualization software Desktops/notebooks
SANs Systems integr. outsrc.
Continuity Continuity
Servers Data-loss prevention
IT automation IT strategy consulting
BPM/BPI apps Mobile devices
Customer service apps Storage-mgmt. tools
15% 54%
22% 42%
18% 45%
19% 42%
18% 42%
15% 45%
18% 43%
16% 43%
19% 38%
21% 36%
40% 24%
29% 33%
17% 43%
36% 24%
36% 23%
14% 45%
5% 50%
18% 36%
25% 29%
25% 29%
www.cioinsight.com MAY/JUNE 2011 | CIOINSIGHT 17
Finding 2 The IT Budget in 2011
N=125-147
IF BUDGETING
Percent Respondents Budgeting
Average budget change from
prior years spending
Average budget
per employee in 2011
2010 2011 Change 2010 2011
LARGE
ENTERPRISES
MIDRANGE
ENTERPRISES
COMPUTING/DATA CENTER HARDWARE
Servers 91% 96% up 4.3% +15.3% +9.5% $138 $367
Desktop/notebooks 95% 96% up 0.7% +7.0% +21.3% $93 $309
Printers 82% 93% up 11.9% -5.2% -0.4% $69 $66
Misc. peripherals 81% 88% up 6.9% +4.7% +0.1% $96 $92
Monitors 85% 81% down 4.0% +1.7% +2.3% $129 $122
Mobile devices 76% 74% down 1.7% +3.2% +8.5% $149 $293
STORAGE EQUIPMENT, SOFTWARE OR SERVICES
Back-up hardware 80% 87% up 7.1% +16.5% +12.1% $189 $792
SANs 78% 87% up 8.4% +15.5% +10.8% $93 $536
NAS 71% 87% up 15.5% +7.2% +3.0% $122 $196
Storage-mgmt. tools 63% 83% up 19.4% +4.9% +4.4% $170 $230
DAS 55% 68% up 12.3% +5.0% +0.6% $247 $1,002
NETWORKING/TELECOM EQUIPMENT, SOFTWARE OR SERVICES
Network software 74% 100% up 26.4% +3.4% +6.9% $72 $521
LAN/WAN equipment 91% 98% up 6.4% +8.5% +8.8% $79 $455
Voice/data services 91% 89% down 1.9% +6.0% +6.4% $67 $363
Telecom equipment 82% 88% up 6.1% +6.2% +7.8% $100 $571
Network mgmt. 74% 87% up 13.0% +3.5% +8.4% $67 $341
Wireless equipment 74% 82% up 8.2% +8.1% +11.0% $42 $332
BUSINESS APPLICATIONS
HR apps 80% 81% up 0.2% +6.5% +0.9% $20 $412
BI/data mining apps 84% 77% down 6.3% +8.0% +7.5% $38 $257
Customer service apps 76% 77% up 1.6% +5.6% +6.2% $22 $733
Collaboration apps 79% 77% down 2.0% +10.2% +7.2% $19 $163
Compliance apps 75% 77% up 2.0% +5.5% +3.0% $24 $146
Supply-chain mgmt. 62% 76% up 14.5% +5.3% -0.8% $32 $311
SFA/CRM apps 73% 74% up 0.9% +6.5% +19.7% $25 $285
Engineering/dev. apps 67% 73% up 6.2% +7.4% +1.7% $30 $437
Desktop apps 86% 72% down 14.1% +2.9% +9.1% $15 $380
Project mgmt. apps 78% 72% down 6.5% +4.4% +4.0% $13 $242
Knowledge mgmt. 65% 70% up 4.9% +4.2% +7.1% $8 $258
Inventory-mgmt. apps 63% 70% up 7.4% +3.1% +4.0% $52 $248
Facilities-mgmt. apps 62% 69% up 7.0% +2.9% +4.5% $31 $250
BPM/BPI apps 69% 69% none +6.0% +7.2% $43 $193
Content-mgmt. apps 68% 68% none +4.2% +2.6% $6 $252
Document-mgmt. apps 78% 67% down 10.9% +8.9% +5.1% $20 $326
E-commerce apps 68% 65% down 2.6% +5.5% +4.5% $14 $101
ERP apps 78% 64% down 13.4% +11.1% +7.9% $247 $1,655
Finance/accounting apps 75% 63% down 12.0% +3.4% +8.3% $579 $204
Manufacturing apps 59% 58% down 1.7% +5.3% +9.3% $37 $536
Life-cycle mgmt. apps 62% 52% down 10.5% +4.5% +2.8% $9 $375
CIOINSIGHT | MAY/JUNE 2011 18 www.cioinsight.com
CIO INSIGHT RESEARCH EXCLUSIVE
Finding 2 The IT Budget in 2011
N=125-147
IF BUDGETING
Percent Respondents Budgeting
Average budget change from
prior years spending
Average budget
per employee in 2011
2010 2011 Change 2010 2011
LARGE
ENTERPRISES
MIDRANGE
ENTERPRISES
IT SECURITY
Email/Web gateways 72% 91% up 19.6% +6.8% +12.5% $86 $147
Security mgmt. 73% 91% up 17.4% +3.9% +10.8% $97 $345
Antivirus 89% 89% none +1.7% +11.1% $48 $198
Configuration mgmt. 62% 82% up 19.7% +4.3% +7.2% $68 $380
Firewalls/VPNs 84% 79% down 4.7% +4.2% +6.5% $103 $708
Identity mgmt. 53% 79% up 26.2% +2.5% +5.9% $21 $472
Rights mgmt. 47% 77% up 29.9% +2.4% +3.3% $53 $198
Access control 59% 76% up 17.2% +5.4% +4.4% $36 $467
Authentication mgmt. 53% 75% up 21.9% +2.1% +1.9% $129 $507
Content monitoring 68% 73% up 5.6% +3.4% +8.0% $91 $372
Encryption 65% 72% up 7.8% +1.5% +9.9% $58 $809
Data-loss prevention 74% 71% down 2.7% +8.8% +5.7% $61 $649
IT OPERATIONS/MANAGEMENT/GOVERNANCE
Desktop mgmt. 73% 90% up 17.7% +0.6% +18.1% $96 $557
Continuity 89% 90% up 0.8% +10.4% +16.0% $110 $3,126
Back-up/deduplication 83% 85% up 1.7% +9.9% +14.1% $153 $2,043
Data center mgmt. 68% 83% up 15.1% +2.9% +9.7% $344 $1,497
Help-desk systems 63% 83% up 19.2% +4.3% +9.9% $90 $919
App/systems mgmt. 73% 76% up 3.0% +1.1% +12.2% $196 $4,042
IT automation 62% 73% up 11.3% +3.3% +15.2% $127 $4,122
Governance/mgmt. 60% 70% up 10.3% +1.0% +11.6% $165 $2,651
IT INFRASTRUCTURE/DEVELOPENT
Operating systems 88% 95% up 6.8% +5.1% +0.9% $55 $332
Virtualization software 84% 88% up 4.5% +18.7% +15.7% $43 $458
Development tools 76% 86% up 10.3% +3.1% +6.9% $53 $387
DBMS 77% 84% up 6.9% +5.0% +1.7% $96 $324
Middleware 73% 81% up 8.3% +4.4% +5.1% $55 $363
Private clouds 48% 74% up 16.3% +7.5% +23.5% $51 $365
Application platforms 73% 65% down 7.8% +7.3% +8.4% $39 $281
IT SERVICES
IT mgmt./support services 70% 93% up 22.6% +1.4% +2.6% $63 $708
Web hosting 70% 84% up 14.2% +1.0% +5.6% $70 $223
Technical training 84% 83% down 1.6% -0.3% +4.3% $49 $1,125
Managed services 61% 76% up 14.7% -0.7% +8.7% $41 $2,816
IT strategy consulting 63% 76% up 12.7% -0.3% -0.9% $61 $2,079
Systems integration outsrc. 60% 76% up 15.8% +2.7% +13.0% $75 $430
Utility computing 36% 70% up 33.3% +1.5% +12.9% $35 $992
Cloud services 41% 67% up 25.9% +6.4% +19.8% $36 $1,167
Hosted data center 52% 59% up 6.8% +1.2% +6.2% $51 $354
Bus. process outsrc. 49% 57% up 8.1% -0.5% +9.4% $96 $366
www.cioinsight.com MAY/JUNE 2011 | CIOINSIGHT 19
CIOINSIGHT | MAY/JUNE 2011 20 www.cioinsight.com
INSIDE THE C-SUITE
business leaders on the role of the cio
E
very CIO knows his or her organizations
business, inside and out. But, what about the
rest of your IT team? To make a strong case
that IT is part of the business, its important that
your entire IT organization knows the business
inside and out.
If youre nodding your head in agreement but
arent sure how to establish this model, follow these
four guidelines and youll be well on your way.
1
Teach your team your business. While the
importance of ensuring that your team
understands your business may seem
obvious, its not commonly practiced across IT orga-
nizations. Instead, this knowledge is generally
shared among the business team (product, sales,
accounting and finance roles) and relayed to the
CIO alone. However, it is equally important that the
network support team has insight into the compa-
nys supply chain, understands the pricing factors,
knows the customers and is aware of other key
factors driving the business.
2
Connect with the business. Make sure your
IT organization not only understands the
business, but feels connected to it. Theres
no denying that the level of passion and innova-
tion that team members bring to their jobs will
increase if they feel connected to the overarching
business strategy and objectives. Consider how
orders travel across the company. Does the IT team
understand how this happens? If not, they should.
Business processes should be understood by your
entire IT team.
Even better, if your company is publicly traded,
encourage them to read and understand your com-
panys Form 10-K to truly understand how IT is a
business driver. Try holding simple training ses-
sions on business elements and operations, and
then quiz your team afterward. Make sure that the
ability to competently explain the companys busi-
ness drivers and speak to the companys financials
are part of each team members management-by-
objectives toolbox.
3
Develop trusted relationships within your
organization. Assuming that the concept
of ingraining IT into the business rep-
resents a cultural shift for your company, keep in
mind that charging headfirst without establishing
relationships with the business team can do more
For IT to be part of the business, your entire IT organization must
know the business inside and out. BY MARILYN WEINSTEIN
I
S
T
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www.cioinsight.com MAY/JUNE 2011 | CIOINSIGHT 21
harm than good. It requires hard work and persis-
tence to gain the trust of business leaders. Make
this a priority as you work to ensure that IT is seen
as an integral part of the business.
Similarly, your CEO and all of his or her staff
must wholeheartedly believe in the value of
employee innovation, and they must commit to
hearing ITs ideas. When such conversations do
happen, avoid IT-speak and focus instead on
using general business terms to discuss goals and
barriers. Be prepared to sit in on business strategy
discussions and offer insights and suggestions
phrased in business termsthat address critical
corporate needs.
4
Consider the risks. What are the career
risks associated with stepping forward
and putting yourself out there to the
larger business team? The biggest risks of this
approach are largely internal to the IT teamnot
to the company at large. To avoid any detrimental
effects from seeking IT innovation, its imperative
that you have a strong IT leadership team in place
below you while you dedicate time to gaining
support from the business side.
If your own IT leadership team isnt fully up
to the task, you run the risk of being labeled an
absentee CIO who is out of touch with the day-to-
day IT operations. Consider this your worst-case
scenario. As long as you stay in touch with your
IT team, instilling confidence in your leaders and
staying abreast of IT initiatives, you will continue
to reap rewards and build more credibility with
the rest of the C-Suite.
Once youve put yourself out there with the rest
of the business, and sold and executed on your
ideas for innovation, its time to really drill down
and instill a lasting culture of innovation within
your IT organization.
Business innovation will grow organically as
the whole team becomes engaged in the business.
When your IT employees understand supply chain
issues, for example, theyll automatically begin
thinking of other supply chain avenues. And, when
they learn about a competitors new product, they
will instinctively begin thinking of product inno-
vations for your company. However, the equation
does not stop there.
While innovation may start with education,
nothing will happen unless there exists a contin-
ued focus and desire to maintain a culture of inno-
vation. Here are three tips to help drive a lasting
culture of innovation:
1. Put your commitment where your mouth is.
Dont fall back on your commitment to innova-
tion. Formalize ideation in a meaningful way
that works for you and your team, and consider
having quarterly full-day white-boarding ses-
sions, creating contests and forming commit-
tees to keep the energy going.
2. Exercise bragging rights. Long after any potential
monetary awards are given and recognition cer-
emonies are over, the innovation itself will carry
on as business is improved. Brag on behalf of
teammates who initiated the change. Highlight
successes to HR and have them published in

your IT organization or companywide bulletins.
3. Track your teams success. Did your storage area
network team come up with a unique way
to store data, which went on to be a leading
product for the business? Track numbers, and
talk about them often with your companys
business executives.
Keep in mind that one of the best ways to kill
innovation is to fail to implement the great ideas
your team has generated. Once there is executive-
level support, start designing programs that foster
innovationand put those ideas into play. And
then continue to do so. Innovation breeds success,
and vice versa. n
Marilyn Weinstein is CEO and founder of Vivo, a
Silicon Valley-based IT staffing and consulting firm
that specializes in successfully aligning the business
and technical needs of IT with the expectations and
cost requirements of the CFO.
Tell us what you think about this article. Email
editors@cioinsight.com.
Try holding simple training sessions on business
elements and operations, and then quiz your
team afterward.
Managing a
Multigenerational
WORKFORCE
STRATEGIC TECH
trends to transform your workplace
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The technology generation gap has never been more pronounced. Yet,
through a combination of policies, programs and tools, its possible to
engage all employees and build a robust and motivated workforce.
BY SAMUEL GREENGARD
D
ifferent generations have always clashed
about how to approach work and use
various tools and technologies. But in an
era of mind-bending and unrelenting change, the
challengesand the gulf between generations
have grown exponentially. As more and more
young workers push the envelope on consumer
devices, including smartphones, and organizations
rush to adopt collaboration tools, social media,
location-based services, cloud services, virtualiza-
tion and other systems, many CIOs find themselves
reeling.
People bring radically different assumptions and
preconceived notions into how they view technology
and its role in the workplace, says Andrew McAfee,
associate director and principal research scientist of
the Center for Digital Business at MITs Sloan School
of Management.
Conventional thinking has always been that the
younger workers adapt to the tools and systems an
organization already has in place. But this business
model no longer applies. The rules are being rewrit-
ten on the fly.
Welcome to the new workplace. For CIOs and
other business leaders, its an era filled with risk
and opportunity. Those who take too conservative
an approachseverely restricting devices and soft-
waremay make an organization less attractive to
young workers, while inhibiting overall productivity.
On the other hand, embracing new tools too eagerly
can result in security and compliance risks, IT head-
aches and disenfranchised workers.
Amid the chaos, its critical to sort through the
tangle of issues and develop a road map for dealing
with these new and difficult times. There are many
myths, misconceptions and stereotypes to sort
through, says Marcie Pitt-Catsouphes, director of
the Sloan Center on Aging and Work at Boston
College. Smart organizations attempt to under-
stand the underlying issues and ensure that various
age groups arent marginalized or excluded from
the process. Workers of different ages have different
things to offer to an organization.
Age Matters
New tools and technologies have always created dis-
placement and disconnect. However, these days, the
landscape is changing faster than the view from a
TGV train speeding through the French countryside.
The consumerization of IT has reached full throttle,
and with it comes a tangle of complex issues, includ-
ing who has access to data, how to best manage
5 Ways to Narrow
the Age Gap
1. Avoid myths and stereotypes. Some older
workers are savvy at using leading-edge technol-
ogy, and there are younger workers who are essen-
tially Luddites. Likewise, studies show that many
younger workers are far more loyal than com-
monly thought. Respect differences, but dont
paint individuals into a box.
2. Communicate. Its important for a CIO and other
executives to promote the benefits of a multigen-
erational workforce and the need to respect differ-
ing attitudes and work styles. Research shows that
a positive relationship with colleagues ranks near
the top for employee satisfaction.
3. Encourage interaction and collaboration. Avoid
creating age pools based on job titles or skill
requirements. Instead, create diverse teams so
that ideas and knowledge flow across the enter-
prise. Use mentoring and reverse-mentoring to
create cross-generational knowledge sharing.
4. Provide training. Offer courses or workshops in
how to get the most out of technology and social
media. Include everyone. Even younger workers
can learn new information about technology.
5. Remain flexible. Understand the needs of dif-
ferent groups and offer programs and benefits
to attract and retain them. This might include
flextime, job sharing and telecommuting. It also
means accommodating workers and their choices
in technology, whenever possible.S.G.
Generations in the Workforce
The Silent
Generation
(1925 to 1945)
The Baby Boom
Generation
(1946 to approximately 1964)
Generation X
(approximately 1964
to about 1982)
Generation Y,
aka Millennials
(approximately 1982
to approximately 1995)
1925 1945 1965 1983 1995
www.cioinsight.com MAY/JUNE 2011 | CIOINSIGHT 23
the data and how to get groups with very different
mind-sets to work together most effectively.
Its no news bulletin that attitudes across gen-
erations differ greatly. Consulting firm Accenture
describes Millennialsthose ranging from their
mid-teens to late twentiesas rocking the founda-
tion of information technology. In many cases, says
Gary Curtis, chief technology strategist for Accenture,
younger workers are thumbing their noses at IT pol-
icies, using nonstandard applications and improv-
ing things whenever and wherever they deem it
necessary. Theres a prevailing attitude that rules
and policies are meant only for guidance, he notes.
An Accenture report, titled Jumping the Bound-
aries of Corporate IT, found that 87 percent of U.S
Millennials decide where they will work based on
their ability to use state-of-the-art technology. Also,
these individuals expect to use their own technology
at work and tap into their preferred technology apps
regardless of any compliance policy. A staggering
61 percent use social networking services that arent
supported by their IT department. In addition,
43 percent tap into nonsupported instant messaging,
31 percent rely on rogue open-source technologies and
26 percent use their own online collaboration tools.
At the other end of the cubicle row are Boomers
and some Gen-Xers. A 2010 Pew survey found that
only 20 percent of adults between ages 50 and 64
use social networking sites on a daily basis, up about
10 percent from the previous year. However, a 2008
AARP survey shows that older workers arent quite
the Luddites that some would make them out to be.
It found that only 26 percent of older workers report
that they have difficulty keeping up with the new
technology required to do their jobs, and a similar
proportion (29 percent) express resistance to learn-
ing new skills at this stage of their careers.
MIT Sloans McAfee says the challenges extend
beyond attitudes and the way different age groups
think about technology. Radically different taxono-
mies and data structures have created a need to work
in new waysand use different technologies and tools
as the navigation system. People have to connect to
data pools that simply didnt exist in the past, he says.
The advantage that many younger workers
have, Accentures Curtis says, is that their minds
are wired for technology because theyve been digi-
tally immersed from a young age. They only know a
world with global connections and data streaming in
every direction all the time, he adds.
Closing the Gap
A starting point for navigating this brave new world,
Boston Colleges Pitt-Catsouphes says, is to recognize
and respect differences while avoiding stereotypes.
Its important to understand that people have grown
up in different eras and have different ways of thinking
about work and technology, she says. But it doesnt
mean that older workers cant learn new systems
and that every young person is a technology guru.
MIT Sloans McAfee argues that the consumer-
ization of IT isnt going away and that eschew-
ing itand turning off younger workersputs an
Graham Group Builds
a Mobile Workforce
Construction companies by nature employ a diverse
age range of workers. At Graham Group Ltd., a
Canadian construction firm that earns $2 billion in
annual revenue, the focus is squarely on connecting
employees in a more efficient manner.
Its no small challenge. The company has many
50- to 60-year-old engineers working alongside 20-
to 30-year-olds, says EVP and CIO Kim Johnson. Work
styles and the use of technology vary greatly. This has
left executives asking key questions, including:
How can we hang onto experienced senior
employees who might be eyeing retirement?
Howcanwerecruittalentedyoungworkers?
How can we keep older workers up to date
with technology?
Howcanwetrainyoungerworkerssotheyare
prepared for more complex assignments?
Johnson has focused on providing training mate-
rials online and making them available on demand.
The company has also turned to two-way men-
toring, which allows senior employees to pass on
knowledge about work processes, while younger
employees teach technology skills to their older
counterparts. Finally, Graham Group has established
standards, practices and policies focusing on the use
of the Internet and social networking.
Every generation has different preferences, but
its important to recognize that issues are some-
times related to [personal] rather than generational
differences, he explains. [Some] older workers are
often more resistant to new technology, while [some]
younger workers are impatient about the slow pace of
change or adoption. At the end of the day, its about
keeping an open mind, communicating and accept-
ing change that benefits the organization.S.G.
24 www.cioinsight.com CIOINSIGHT | MAY/JUNE 2011
organization at a distinct competitive disadvantage.
Executives must alter their thinking and modify
their ideas and expectationseven though this is the
opposite of what many of them believe, he says. In
many cases, Millennials are on the right track with
the way they want to use technology in their jobs.
Theyre holding a flashlight to the future.
Its critical for organizations to address multi-
generational challenges, Accentures Curtis says.
First, he recommends developing a well-reasoned
and balanced technology policy and ensuring that
employees read and understand it. (For a look at
how one company addressed this issue, see Policy
Matters at Unisys, below.) Unfortunately, many
companies lack policies, or theyre entirely incom-
prehensible or unreasonable, Curtis says. It needs to
be in plain language rather than legalese. Employees
must know why various provisions are important.
Second, its critical to provide training to
workersparticularly older employees who may be
well-versed in using email and Web tools, but are
lagging in areas such as social media and crowd-
sourcing. Many younger workers, Curtis notes, solve
problems by integrating colleagues and friends into
the process. As a result, some organizations have
latched onto the idea of younger workers reverse-
mentoring older workers. At the same time, younger
workers can gain a greater appreciation for the
business and security issues that prevent the
unrestrained use of personal technology.
Finally, its important to rethink security and threat
management. Clinton Smith, manager of IT risk and
compliance for professional services provider Grant
Thornton LLP, argues that organizations must focus
on opportunities as well as risks. Its critical to protect
the data rather than the device, he argues. Trying
to build the ultimate padlock is both impractical and
inefficient. Consequently, some organizations are
focusing heavily on endpoint security and a more
holistic protection model. Others, such as IBM, are
building app stores with approved software.
Yet, in the end, theres no way to build airtight
rules and policies that guarantee security. Nor can
we assure that every application, method and tech-
nique used by younger workers benefits the orga-
nization. Savvy CIOs, Curtis says, recognize that the
tech genie is out of the bottle and the physics of the
20th century no longer apply. Forward-thinking CIOs
view the situation with open eyes and an open mind,
and they embrace the opportunity to innovate.
Theres certainly no turning back. Executives
might find younger workers and the way they use
technology somewhat challenging, Curtis concludes.
However, theyre guiding the way to the future of
work. They can serve as intelligent critics. They can
provide enormous insights. Wise business leaders
listen to them and learn from them. n
Tell us what you think about this article. E-mail
editors@cioinsight.com.
The first step toward bridging the technology genera-
tion gap is recognizing that a potential problem exists.
Patricia Titus, vice president and chief information secu-
rity officer at Unisys, says that the company is attempt-
ing to swim with the current rather than fight it. We
felt that it was necessary to adopt a consumer IT frame-
work that enables the workforce to be more productive,
she says.
Unisys is developing a BYOD (bring your own device)
program that accommodates workers but also pro-
tects the companys interests and security require-
ments. Employees can use a smartphone or tablet of
their choice as long as they abide by an acceptable-use
agreement. Among the terms: Users must allow a pub-
lic-key infrastructure device certificate to be installed
on their smartphone along with remote wipe software.
They must also acknowledge that they understand that
their personal device may be confiscated for unspecified
periods in the event of a legal hold.
The company is now rolling out the BYOD program
in North America. Other countries will follow. We must
take into consideration the laws and privacy require-
ments of every country where we have employees, Titus
says. She doesnt expect the task to be onerous. Smart-
phone technology and many smaller mobile devices are
really just data replicators, she explains. We focus on
the data rather than the device and educate employees
about the risks, including the use of social media.
Titus believes that the program is a valuable exer-
cise in identifying policies and procedures that accom-
modate todays workplace. Its no longer possible
to build a fortress, she says. You have to figure out how
to protect your digital assets, while allowing employees
to use the device of their choice.S.G.
Policy Matters at Unisys
www.cioinsight.com MAY/JUNE 2011 | CIOINSIGHT 25
Y
ouve heard it all before. the cfo asks:
How do we know what value were getting
from IT? The business-line leader asks:
How do I measure the value of IT to my P&L and not
just count the number of help-desk tickets closed?
The CEO asks: How do I know that our IT spend is
allocated to best support our objectives?
Economic pressures are making the CIOs use of
best practices in value measurement more urgent than
ever, especially using the right measures applied in the
right way to gain the right insights to improve value.
But, are CIOs doing this? In 2009, a Center for CIO Lead-
ership study entitled Communicating Business Value
reported that only 51 percent of respondents agreed
they have developed business value indicators that
link IT performance metrics and business goals.
When examples are given in workshops, it turns
out that many enterprises are falling into two traps.
On one hand, they are tying measurement to IT oper-
ational objectives (cost per unit), not to real business
objectives. On the other hand, they are trying to leap
from tactical objectives, such as ticket-closing times,
to overarching business objectives, such as agility.
Whether in projects or in operations, the gap
between IT and business objectives is real. A 2009
study by ISACAan 95,000-constituent, 160-country
IT management professional groupfound that
IT alignment to business objectives had the lowest
maturity of any of the success variables evaluated.
Yet, IT value measures can be improved. Here are
four key guidelines to get you started:
1. Match IT Value Measures to Business Measures
Map objectives in steps: growth, revenue, profit,
customer satisfaction and IT objectives. To make
it tangible, try using the metrics that are already
applied to organizational objectives. In this way, new
product introduction rates can map directly through
steps to IT application flexibility.
Many enterprises try to map to business objectives,
but fall into a trap when they dont link to portfolio
categories and measures. Its somewhat like a person
trying to earn more income from a retirement portfo-
lio without ever changing asset allocation strategy. In
IT terms, CIOs will say their portfolio includes build
and run. In retirement terms, this is like saying they
want to preserve capital and grow earnings. These
are broad-brush statements, not tied to practical busi-
ness objectives for product flexibility, data integration,
or mergers and acquisitions. More specific statements
can drive architecture, hardware and software acquisi-
tion, operations design and resulting metrics.
2. Match IT Value Measures to Your Business-IT
Investment Portfolio
Review the investment directions shared by your CEO
Review the investment directions shared by your CEO and CFO
at the past few investor conferences. Compare those priorities to
your IT portfolio categories. BY BRIAN BARNIER
THE WORKPLACE
resources to shape your management strategies
How to Improve IT Value Measur
CIOINSIGHT | MAY/JUNE 2011 26 www.cioinsight.com
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alue Measurement
and CFO with shareholders. Compare those priorities
to your IT portfolio categories. How can they match
up better than they currently do? Which specific value
measures can tie these together?
It sounds simple, but enterprises struggle with
this. In workshops, IT leaders will often say: Weve
done this. Yet, in exercises, it becomes clear that there
are gaps. A typical trap is failing to ask all stakehold-
ers in the organization how they might benefit from a
given solution or service. To find out who those stake-
holders are, simply ask your primary sponsor, Who
else benefits? Have a conversation with each person
or team identified. The process of talking with a busi-
ness partner or major customer might not only help
you improve the documentation of benefits (and value
measures), it might also sharpen your requirements.
3. Learn How to Manage Hidden Costs
On the cost side, IT leaders often undercount life-
cycle costs, including insurance and financing costs.
These hidden costs can show up in something as
complex as a major software acquisition and deploy-
ment, or something as simple as the tactical, limited
use of a single software application. When it comes
to a major software acquisition, talk with the vendors
about life-cycle costs under two scenarios:
1. alternative infrastructure environments and
2. different change rates from your business owner.
Then get clarity from the business owner on how
youll measure value. A surprising number of orga-
nizations struggle to deliver the value expected
because they use measures of value in their invest-
ment portfolio process that differ from those they
use in their daily operations. In investment decisions,
the CFO defines measures for sales or operations that
might not fully include IT dependencies. In opera-
tions, accounting and IT service monitoring data
are often insufficient for value analysis. To improve,
a cost-structure approach is required, and service
measures must tie to portfolio objectives.
4. Determine How to Report Value With Consistency
To do this, youll first need to configure all report-
ing systems to track similar measures. This generally
requires a business-analyst/end-user type skillset in an
IT finance role. Next, youll need to look for opportuni-
ties to integrate your software tools. Ask your vendors
how they have helped others accomplish this goal.
To help you succeed in value measurement and
reporting, heres a bonus tip gained from the painful
lessons of others. You should implement all these tips
in a balanced way.
Ive seen many an energetic IT leader work hard
on one or two of these key areas and still face a grill-
ing on Wheres the value? because he or she failed to
cover all the bases. Print out this list, tack it to your wall
and check off each step as its completed. Take the hard
lessons others learned and put them to good use.
Brian Barniers career spans business and IT. He
speaks and writes widely and serves on multiple pro-
fessional practices committees. He is a principal at
ValueBridge Advisors, where he provides advisory
services, such as executive mentoring and problem-
solving workshops, to CFOs, CIOs and other leaders. n
Tell us what you think about this article. E-mail
editors@cioinsight.com
www.cioinsight.com MAY/JUNE 2011 | CIOINSIGHT 27
CIOINSIGHT | MAY/JUNE 2011 28 www.cioinsight.com
Quick-service restaurant company Yum! Brands is turning to a range of
collaboration tools to encourage new ideas that enhance operations for its
KFC, Pizza Hut and Taco Bell franchises. BY DENNIS MCCAFFERTY
EXPERT VOICES
the CIO INSIGHT interview with dickie oliver
W
e talk all the time about collaboration,
and, usually, were intrigued by what the
leading-edge companies are doing in this
space. Maybe were fascinated with how the creative
geniuses at Apple came up with something as novel
as the iPad. Or perhaps we want to get inside the brain
trust of an innovative company such as Google so we
can understand how tech tools can be used to create an
entity thats more than the sum of its partsan entity
in which employees are empowered to interact at the
highest levels.
Maybe were having this discussion at a fast-food
restaurant where were ordering a taco or a pizza.
Unknown to us, that very same type of collaboration is
taking shape just beyond the counter where a teenager
is serving us.
This would do well in describing Yum! Brands, the
corporate parent of top quick-service restaurant chains
KFC, Pizza Hut and Taco Bell. Boasting nearly 38,000
restaurants in more than 110 countries and more than
1 million employees and associates, Yum! Brands
earned more than $11 billion in revenue in 2010.
For Dickie Oliver, vice president of global IT for
Yum!, interactive tech tools are driving the compa-
nys present and future. Primarily, Yum! is partnering
with Cisco to establish a culture of sharing best prac-
tices designed to influence the way products and ser-
vices are presented at all retail locations. Cisco started
off by supplying voice over IP (VOIP) technology to
reduce long-distance/international phone expenses for
Yum! Now, the vendor is delivering wireless tools such
as Call Manager and 3502i Series Access Points, along
Delicious
Collaboration
www.cioinsight.com MAY/JUNE 2011 | CIOINSIGHT 29
with other solutions that support routing, LAN switch-
ing and security. Other major Yum! vendors include
Microsoft, for Windows support; Orange and AT&T,
for global Multiprotocol Label Switching (MPLS); and
Dell and IBM, for data center operations.
Oliver spoke with CIO Insights Dennis McCafferty
about Yum! Brands collaborative culture and the
enterprise-technology oversight needed to make it
happen. The company is headquartered just outside
downtown Louisville, Ky., where the main build-
ing on campus is affectionately dubbed the White
House. Its a traditional three-story Colonial facade
with a completely modernized work environment
within. Also on campus are interactive working
spaces; a full, modern fitness facility; Yum! Univer-
sity; on-site day care and other amenities.
Yum! chairman/CEO David Novak believes leaders
should reward and recognize the contributions of
othersand have fun doing it. His Yum! Award a
set of chattering teeth on legsis given to people at
the company who excel at leadership. Hes given out
nearly 900 by now, Oliver says. We all take pride in
a culture in which people are recognized for achieving
breakthrough results and taking action. In oversee-
ing the IT structure for Yum!, Oliver, too, has sought to
drive winning results. Heres what he has to say about
collaboration and other emerging technologies.
CIO INSIGHT: Lets play devils advocate here: How
much technology can be involved with running a
company like Yum! Brands?
DICKIE OLIVER: Were like any other major company in
the retail space. We have nearly 38,000 locations with
more than 1 million employees and associates. They
need enterprise-level tech support. Every one of us
working here is focused on the customer, so we want
to push further and further out into technology areas
that serve them.
This involves expansion into social media, mobility
and customer analytics. Our recruitment and retention
programs are heavily supported by technology as well.
We use solutions from Kronos, for example, to cast a
wide net into the labor pool and get access to as many
high-quality candidates for new associates as possible.
How heavily are you involved with messaging and
collaboration tools, and whats driving demand for
them within the enterprise?
OLIVER: Were very much invested in messaging and
collaboration tools at all our restaurant locations
throughout the world. Our principle tool is iCHING.
The i is for Internet. CHING is Chinese for relation-
ship building. iCHING is a tool for employeesacross
multiple time zones and geographiesto share best
practices and foster breakthrough thinking and inno-
vation in every area of the companys business.
We created iCHING to allow our associates to build
profiles of themselves, tag keywords to communicate
their expertise and post information on our network.
They create discussions and links to come up with
new ways to create better products or help introduce
new, successful product lines. They share tips on how
to make these products as quickly and easily as possi-
ble. On the tech side, we depend on Microsoft Share-
Point to allow for file sharing, both internally and
with our external partners. This is one of our data C
O
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IN SUMMARY
WHO: Dickie Oliver, vice president of Global IT for Yum! Brands
WHAT: Discussing how the use of advanced collaboration tools has
enhanced operations across the companys 38,000 restaurants,
which include KFC, Pizza Hut and Taco Bell
WHY: To give CIOs and other IT leaders insight into the business
benefits that can be gained from enabling a collaborative culture
in their enterprise
CIOINSIGHT | MAY/JUNE 2011 30 www.cioinsight.com
repositories. For example, an associate in the United
Kingdom can type in a query and find data that helps
develop a better way to serve customers.
Do employees really have an impact on product lines
using these collaborative tools?
OLIVER: They sure do. In Australia, we have a bever-
age line called Krushers at KFC. Our KFC Australia
team shared their product-development expertise on
iCHING. This resulted in the introduction of Krushers
to other markets, demonstrating an international
pipeline of best-practice sharing. Another example
is our Crunchwrap Supreme from Taco Bell in the
United States. The KFC team in the United Kingdom
leveraged the Crunchwrap expertise to develop a
similar product. Collaboration and messaging are
major business drivers.
Which brings up a question were constantly asking
our CIOs: Is the use of technology being dictated by the
business side or by the IT execs?
OLIVER: Were in front of the business folks as much as
possible. We seek their ideas. We want to know what
will directly serve their business needs. We firmly
believe that technology serves business, not the other
way around. Ultimately, we seek to have business drive
95 percent of everything we do. We also push decision
making far down the chain because we maintain a
highly decentralized organizational structure.
Our store associates are dealing directly with
customers. They know what they want. They know
whats selling. They exchange ideas on this with our
division managers, and that gets pushed up within
our company. The technology departments are tuned
into this, and they then seek products and solutions
that meet the business needs being conveyed.
Has Yum! been able to determine ROI on the use of
collaboration tools?
OLIVER: Were exploring this. We know collabora-
tion through these resources helps drive the business.
Right now, were focused on establishing and encour-
aging this kind of information-sharing environment.
We want the next generation of workers to know that
we are providing for them in this space, and we want
them to use it to build and share best practices.
How have you adapted to best serve the needs of your
mobile customers?
OLIVER: We allow many of these strategies to be deter-
mined at the brand level. We have a Pizza Hut applica-
tion on the iPhone, for example. You can load it on your
device and order any product in our stores.
The use of mobile devices at work is, more and more,
determined by users personal preferences. How is this
affecting Yum! Brands? Have you had to establish best
practices, policies and procedures?
OLIVER: Its something we continue to evaluate with
the proliferation of Androids, iPhones, BlackBerrys and
other such devices. We mainly work to ensure that
we can support the tools needed by our employees to
perform their jobs. We want to make sure their expe-
rience is user-friendly to promote more collaboration,
but we also need these communications to be secure.
How invested are you in cloud computing?
OLIVER: The cloud is a buzzword that means differ-
ent things to different people. Were heavily virtual-
ized on our internal servers, and thats the first step
in getting to the cloud. We were way out ahead in
that game, launching virtualization nearly five years
ago. Now were always looking for the best business-
serving solutions with respect to software and inter-
nally hosted applications, and many of these are
available in a private or public cloud offering.
Have you opted for the public cloud or a private model?
OLIVER: Its predominately private. Thats the easiest
one for us to secure.
How involved is the company with respect to moni-
toring and evaluating the comments that customers
make about your stores on social media outlets?
OLIVER: We have social media managers who are
tasked to do this. Were obviously very interested
in what customers have to say. We track customer-
response trends, sentiments and conversations. Its a
big space, and its evolving rapidly over time.
If there was one magic power you could get out of
collaborative mobile technology, what would it be?
OLIVER: There are so many providers in this space, and
so many more appear to be on the horizon. The mobile
industry needs to standardize how these devices talk
to each other, so they can all interact in a seamless
way. Our associates are using a large variety of indi-
vidual devices, based on their personal preferences,
and theyll continue to do so. So a more standardized
approach would only enhance our ability to share
information across Yum! n
Dennis McCafferty is director of content for Welz &
Weisel Communications.
EXPERT VOICES
Tell us what you think about this article. E-mail
editors@cioinsight.com.
www.cioinsight.com MAY/JUNE 2011 | CIOINSIGHT 31
WHAT S ON THE CI O S MIND?
Business Intelligence Solutions Biggest problems with BI (percent respondents)
Data Centers
85% say they will definitely or probably expand usage of data center space this year, up 4% over last year.
72% project an increase in data center budgeting in 2011, with the average budget increase cited as 7.7% higher than 2010.
59% say C-level execs have become an integral part of the decision-making process for data center projects.
3.9 is the average number of data centers operated by respondents.
18,000 square feet is the average size of data center expansion, among those respondents who say their companies are
planning an increase.
60% of those whose organizations are pursuing data center expansion in 2011 say they plan to lease the space from a
wholesaler rather than build their own, up 7% from 2010.
51% of those whose companies are planning to expand their data centers in 2011 are considering a do-it-yourself
approach, down 6% from 2010.
SOURCE: Digital Realty Trust, Whats Driving the U.S. Data Center Market, 2011, May 2011; approximately 300 IT decision-makers at large corporations in North
America were polled.
Succession Planning
31% say their company doesnt have a succession planning program.
27% say their companies have been adversely affected financially because of poor succession planning or a lack of it.
28% say the recession has served as an obstacle to effective succession planning.
49% say their workers fail to set career paths with managers that specify timelines/milestoneshurting their own
chances to take a role in the succession/advancement process.
SOURCE: CareerBuilder survey, May 2011; nearly 1,100 employers were polled at organizations with more than 1,000 workers.
Backdoor Mobility
78% say that they have no idea what mobile devices are connected to the corporate network in real time.
77% say they have no idea what data is on all the mobile devices in their enterprise.
76% say that trying to secure corporate data is becoming a bigger-than-ever issue due to the sheer number of employee-
owned mobile devices in the enterprise.
46% track data only on corporate-owned mobile devices and not on employee-owned devices.
23% say they track corporate data on every single mobile device running on their network.
SOURCE: Vanson Bourne survey commissioned by Mformation Technologies, March 2011; 200 CIOs polled in the U.S. and 100 CIOs polled in the U.K.
The solutions have
limited capabilities
26%
Lengthy and difficult
development cycles
24.5%
It cant connect to
company data easily
24.5%
Solutions dont adapt
to new requirements
17%
Solutions dont work with
legacy technologies
8%
SOURCE: LogiXML survey, spring 2011; 575 business and IT professionals polled March 29-April 8, 2011.
CIOINSIGHT | MAY/JUNE 2011 32 www.cioinsight.com
BOOK REVIEW
excerpts and highlights from leading business resources
Connecting in the C-Suite:
10 TIPS FOR CIOs
Connecting Top Managers:
Developing Executive Teams
for Business Success
By Jim Taylor and
Lisa Haneberg
FT Press
Available Now
W
ere betting that you
encourage collabora-
tion within your teams.
You may even require
your IT staff to get outside
their comfy, cubicle confines and learn about the
needs of internal users in other departments.
But, how effective are you when it comes to
collaborating with your fellow C-suite leaders and
other senior executives? The best way to estab-
lish an organizational culture of collaboration is
to practice what you preach.
Taylor and Haneberg provide a detailed game
plan on how to network in the upper reaches of
your organization. They explain how differences in
backgrounds and management approaches among
leaders can best be exploited to deliver results for
your companyas opposed to creating bottleneck-
producing clashes. The book also presents a blue-
print for running an efficient, effective meeting with
your C-suite peers. When establishing a working
leadership collaboration model, the authors contend
that every interaction is importantfrom random
hallway encounters to formal strategy sessions. Here
are 10 tips from their book:
1. Opt for face-to-face collaboration. Email
exchanges do not reveal a fellow leaders values,
idiosyncrasies and upbringing.
2. Agree upon unified terms for success. Leader-
ship teams cant pursue organizational success if
they havent agreed on its definition.
3. Determine the metrics for success. These can
include increasing revenue, expanding market
reach, improving customer loyalty, gaining a
competitive edge, enhancing value for products
or services, and leveraging key differentiators.
4. Develop a talent-harvesting plan. Work with
leaders to personally execute a talent cultiva-
tion system. When talent nurturing isnt part
of middle managements culture, those manag-
ers are unlikely to initiate such a system for the
rank-and-file.
5. Encourage agility. Your leadership team must col-
laborate on agile management. When the big
bosses are perceived as hindrances to innovation,
lethargy creeps throughout the organization.
6. Allow for critical thinking. Dont let differences
among leadership teams lead to clashes. Think
of opposing viewpoints as an opportunity to
exchange fresh perspectives and encourage criti-
cal thinking.
7. Opt for transparency. Make sure you repre-
sent your fellow leaders well. Understand their
intentions and motivations and communicate
these in a clear, positive manner to your teams.
8. Conduct effective meetings. Use leadership
meeting time effectively. Keep agendas focused.
Determine actionable outcomes, with assigned
roles to pursue them. (The estimated average cost
of a meeting per leader is $350 per hour.)
9. Value everyones time. Ensure that the time spent
on collaboration and brainstorming is valuable.
Require pre-meeting research on actionable
topics from all participants. Make sure assigned
research topics dont overlap.
10. Cultivate an open atmosphere. Invite middle
managers and employees to observe your lead-
ership collaborations to establish a positive
working model companywide. n
www.cioinsight.com MAY/JUNE 2011 | CIOINSIGHT 33
Management 3.0:
Leading Agile Developers,
Developing Agile Leaders
By Jurgen Appelo
Pearson/Addison-Wesley
Professional
Available now
A
gile development is con-
sidered a methodology
by which solutions are pro-
duced through collaboration among self-organizing
and multifunctional teams, according to commonly
referenced definitions. However, within too many
organizations, a lack of effective management of
these teams is the biggest obstacle to successful
agile development, according to Appelo. He contends
that in order to succeed, todays organizations must
perform as living, networked systems. The secret,
he says, is to focus primarily on people and relation-
ships, as opposed to technology. n
The Progress Principle:
Using Small Wins to Ignite
Joy, Engagement, and
Creativity at Work
By Teresa Amabile and
Steven Kramer
Harvard Business Review
Press
Available: August 9, 2011
E
mployees are most
motivated when they
are making consistent,
meaningful progress. Through rigorous analy-
sis of nearly 12,000 diary entries provided by 238
employees from seven companies, the authors
explain how managers can foster progress and
enhance inner work life every day. The book shows
how to remove obstacles to progress, including
meaningless tasks and toxic relationships. n
Agile Analytics:
A Value-Driven Approach
to Business Intelligence
and Data Warehousing
By Ken Collier
Pearson/Addison-Wesley
Professional
Available: July 29, 2011
T
his guide explains
how to bring new
agility to data warehousing that can result in valu-
able business-intelligence features and dramat-
ically reduced project risk. Collier pioneered the
integration of Agile methods with data warehous-
ing and business intelligence. He is founder and
president of KWC Technologies, and a senior con-
sultant in the Cutter Consortiums Agile Develop-
ment and Business Intelligence practice. n
As One: Individual Action,
Collective Power
By Mehrdad Baghai and
James Quigley
Portfolio/Penguin
Available now
T
here are myriad theories
about leadership, but
most of us tend to think
of our employee-oversight
techniques as falling into
one of two broad categories: command and
control or warm and fuzzy. Baghai and Quigley
debunk the myth that these are the only two man-
agement styles available. Instead, they identify
eight distinct leader/follower dynamics and illus-
trate more than 60 real-life examples of these,
including Cirque du Soleil, Linux, Starbucks, FedEx
and Amazon. n
The Innovators Manifesto:
Deliberate Disruption for
Transformational Growth
By Michael Raynor
Crown Business
Available: August 9, 2011
P
redicting which inno-
vations will succeed
too often involves pure
luck. Manifesto delivers
a game plan designed to
help increase the level of
true science and data within this process. The book
demonstrates that the careful application of the
right theory improves overall innovation success
rates. Raynor, a Distinguished Fellow with Deloitte
Research, works with senior executives across a
range of industries, including telecommunica-
tions, media and entertainment, pharmaceuticals,
medical devices, energy and manufacturing. His
previous books include The Innovators Solution,
co-authored with Clayton M. Christensen. n
CIOINSIGHT | MAY/JUNE 2011 34 www.cioinsight.com
HOT TOPICS
aggregation of blogs, tweets and social networking commentary by, for and about cios
Help Jump-Start a CIOs Career
A newly minted CIO recently put out this request to the
CIO Network, a LinkedIn group: Have made it to CIO and
I would like to go above and
beyond. Can anyone give me
some good pointers or rec-
ommend some good reading
or training? At press time,
the number of responses had
clocked in at 102 and was still climbing. Our favorite?
Buckle up and be ready for a bumpy ride. Among the
profusion of solid advice was this gem: New CIOs often
get in trouble trying to solve all the problems and please
everyone right out of the gate. If there are service deliv-
ery issues, deal with them first and set realistic expecta-
tions with the management team. No one wants to talk
strategy when basic IT functions arent working. Also,
ask business units what their expectations and needs
aremake sure you are focusing on their priorities and
delivering appropriate solutions. And have some fun:
CIO can be the best job in the world if you come at it
with the right attitude. Words to live by, indeed.
SOURCE: LinkedIn, CIO Network (membership required)
Check it out here: tinyurl.com/44qde5s
Meet Amazons Employee No. 1
Seventeen years ago, Shel Kaphan was employee No. 1
at Amazon.com, a company that now employs more
than 40,000. In his first interview
since leaving the company in 1999,
Kaphan shares his experiences
working at the then-startup in a
garage in Bellevue, Wash. When I
first got there, we didnt have any
computers yet, so the first job was
to shop for some computers and
decide what database systems we
were going to use and what software was available,
Kaphan tells writer John Cook in this GeekWire
interview. I mean, nobody knew how to write
Websites at that point in time. I had never done it
before. We had to figure out how were going to do
that. So we just got down to business right away.
SOURCE: GeekWire, Meet Amazon.coms First Employee: Shel Kaphan,
June 14, 2011.
Check it out here: tinyurl.com/3ps6h96
The 14 Biggest Ideas of the Year
The Atlantic released its Ideas Report, highlighting
the best and brightest of 2011. Two that particularly
resonated with us were
No. 9 (The Next War Will
Be Digitized) and No. 2
(Nothing Stays Secret).
Grand-scale geostrategy
has always involved locating
the opponents choke points
and vulnerabilities, where concentrated damage can
produce widespread harm. That once meant harbors,
railroads, ball-bearing works, airports. Now, its what
comes through the USB connector and the Ethernet
port, writes James Fallows in The Next War Will Be
Digitized. Meanwhile, in Nothing Stays Secret, Dana
Priest writes: The death of secrecy isnt quite upon us,
but weve seen ample evidence this past year to suggest
that its probably fast approaching.
SOURCE: The Atlantic, The 14 Biggest Ideas of the Year, July/August 2011.
Check it out here: www.theatlantic.com/special-
report/ideas
Cyber-Warfare: Our Next Pearl Harbor?
U.S. Central Intelligence Agency Director
Leon Panetta warns: The next Pearl Har-
bor that we confront could very well be a
cyber-attack that cripples Americas elec-
trical grid and its security and financial
systems. Panetta raised this specter when
he appeared before the Senate Armed Ser-
vices Committee for a confirmation hear-
ing for his appointment as the U.S. Secre-
tary of Defense on June 9, 2011. Sleep tight.
SOURCE: The Christian Science Monitor, CIA Chief
Leon Panetta: The Next Pearl Harbor Could Be a Cyberattack, June 9, 2011.
Check it out here: tinyurl.com/69uqgu9
Lets talk business agility,
not limited capacity.
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Find out more about our cloud-based platform solutions.
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