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April 2009

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While it might not be the largest federal agency in the U.S. government or have the biggest budget, the U.S. General Services Administration (GSA) provides good and services to enable the other federal agencies to function. Its formal mission is "to help federal agencies better serve the public by offering, at best value, superior workplaces, expert solutions, acquisition services, and management policies.' GSA employs about 12,000 federal workers and has an annual operating budget of about $16 billion, about one percent which comes from taxpayer dollars. Meanwhile, the GSA oversees about $66 billion of procurement annually and also contributes to the management of about $500 billion in U.S. Federal property.

About a half billion of GSA's budget goes to the delivery of information technology to support the agency's acquisition services. As chief information office for GSA, Casey Coleman wants to make sure that every dollar counts. In fact, her primary role focuses on leading and carrying out the efficient acquisition and management of IT solutions across GSA. She manages the agency's IT program, overseeing management, acquisition, and integration of the agency's information services. Her oversight responsibilities include strategy planning, policy capital planning, systems development, information security, enterprise architecture, and e-government.

Enterpriseleadership.org sat recently sat down with Coleman to talk about how she is bringing about organizational change and using technology to achieve business and mission goals. Here is what she had to say:

EL. Can you describe some of GSA's key responsibilities?

CC. GSA is a worldwide organization. We provide business services to the rest of the federal government. Although we're not a high-profile agency, we provide key business services that the rest of the federal government depends on. We manage all of the federal real estate for all of the civilian agencies. We're the landlord for all of those federal buildings. In fact, we're one of the largest real estate organizations in the world. We're also one of the largest telecom providers in the world. We engage with industry to acquire telecommunications and IT services the rest of the federal government can consume at very competitive rates. We also provide services such as fleet and motor vehicles, office supplies and services, and government-wide managed services such as the travel program and the purchase card program. We do much of the behind the scenes work to help other federal agencies fulfill their mission, and most of our key programs relate to that mission.

EL. What was the most important IT initiative you handled during the past two years and why did you have to do it?

CC. Our IT is devoted to the capabilities around acquisition of goods and services, and the management of client funds to pay for those services. The consolidation of our entire infrastructure has helped us to fulfill this objective. We have 11 regions in the U.S. Each of these regions historically had managed its own infrastructure, such as networks, IT support, and help desk. Eighteen months ago we consolidated 39 contracts and 15 help desks into one program centralized under my office. We also consolidated all of those regional IT employees into this office.

EL. How much of a cost savings is this going to be?

CC. We initiated this program in 2007. We've seen at least a 15 percent cost savings. We also have been able to hold our costs steady in 2007 and 2008 from the original 15 percent savings baseline calculated from 2006 expenditures. We have seen a savings of at least $5 million. Moreover, we've been able to take on new initiatives and do more unfunded mandates with existing money.

EL. What is your definition of business impact?

CC. We try to tie our work to the impact that is has on our constituents. As a result, business impact comes from helping the business organization of our agency better perform their mission. We accomplish this either through removing obstacles to enable productivity or deploying new capabilities to help them work in a way that is more modern and more productive. As a federal agency, we deal with the public trust of safeguarding the taxpayers' dollars. To this end, we need to prevent information security breeches.

EL. How do you communicate business impact throughout the organization?


CC. I believe in using every channel available to communicate our message frequently and personally. For example, I send out a periodic newsletter to the senior leaders of the organization via our Web site. I also like to get into the field and to visit with business managers who rely on our services. I want to hear what they need from us.

EL. Have you made changes to your enterprise architecture to better align with the business architecture?

CC. Yes!  GSA is a decentralized organization, and we've managed our IT in a decentralized manner. We have had IT applications, and business applications deployed by each of the business divisions within the agency. In the past, the Office of CIO was more responsible for policy, architecture, capital planning, information security, and not so much the management of IT applications.

A great many business trends caused our agency to act in a more unified and more cohesive manner. As a consequence, we realigned our enterprise architecture to manage IT more as a holistic enterprise portfolio of services and capabilities.

For example, within the agency, we have more than 40 different applications which require a user ID and password.  As a result, employees of the agency can have dozens of passwords they need to keep track off. We recognized that this isn't a good way to manage security. It certainly isn't a holistic approach to information security. It's also a productivity impediment. We've embarked on an identity and access management initiative. It's in the early stages. We're developing an identify access management solution that all of these applications will then tie into. Through this one solution, our employees will have access to the network and access to all of their applications.

EL. Can you describe the oversight process for making IT investments?

CC. All federal agencies plan their budgets two years in advance.  We're about to embark upon the 2011 budget cycle in the Spring 2009. At that time, we'll go through a process to select the most compelling investments for our emerging business priorities. My office is responsible for prioritizing these investments and submitting them to the Office of Management and Budgets. We manage, monitor, and oversee those investments and make sure they're on track.

EL. Does planning IT investments two years in advance pose a challenge to make sure that certain things get done?

CC. No one can foresee with perfect accuracy what is going to happen two years in advance. I'll say that there is always some changes and adjustments that have to be made. We have to call upon senior leadership to be able to make those adjustments as gracefully as possible.

EL. What tools do you use to monitor that two-year planning process?

CC. The federal agency, as a whole, has to use an ANSI-standard earning value management technique. It is a formal methodology for monitoring the spending and scheduling of any investment to make sure it is on track. It requires the submission of reports. It's basically project management.  We use a tool called Electronic Capital Planning and Investment Control, which provides an automated way to submit, to track, and to manage our investment portfolio.

EL. Can you describe your governance process?

CC. We've just revised our governance process because it was several years old. We streamlined it and made it more decisive. We have a set of standing committees that focus on practice areas, such as enterprise architecture, capital planning, information security, and infrastructure. These standing committees deal with tactical-level problems, including working out standards, agreeing upon them, and scheduling tasks. Above that is an IT executive council comprised of senior executives from the primary business divisions of the agency. They're responsible for the guidance and decision making on IT investments. Above that, we have a council of the senior business executives of the agency. They're responsible for setting guidance for our investments. I'm on that committee as well.

EL. If you had to look at an IT maturity index, where would your organization rate on the scale?

CC. We have mature processes especially in the areas of governance, capital planning, investment control, and information assurance. There are things that we're trying to move further along that maturity curve, especially, in the management of our infrastructure. Here we're deploying the IT Infrastructure Library.

EL. You worked in the private sector for many years. What adjustments did you have to make to be successful as a public sector CIO?

CC. My industry experience has been invaluable in helping me in the federal sector. On the other hand, I found that moving into the public sector was a learning experience. In the public sector, you deal with public trust and with public taxpayer dollars. Everything you do comes under greater scrutiny than if you were in a company. There are more stakeholders involved in reviewing and approving the course of action. You aren't the captain of the ship setting the course and steering where you will. We are accountable to the administration through the Office of Management and Budget and to Congress. The media is also a stakeholder. The public at large is another key stakeholder. Other government organizations, such as the Government Accountability Office, are also stakeholders. You need to be able to build coalitions, to communicate clearly, and to be transparent. Being able to build teams who can support your initiatives is critical. On the other hand, the time you take to build these teams can prevent you from moving with the agility you'd like. On the flipside, this team building can keep you from doing things that haven't been thoroughly considered beforehand. There is a positive side to that.

EL. Are you involved in any professional IT organizations apart from the federal government?

CC. I'm the vice president of an organization called AFFIRM.org. It's a federation of federal IT managers. I'm also involved in the Federal CIO    Council, where I chair that committee on best practices with the CIO from the State Dept. We're trying to collect, to publicize, and to encourage the use of best practices and standard practices across the government. I'm not involved in Women in IT although I try to keep up with what they're doing. I'm also the chair of a conference called the Management of Change. It occurs every year. The American Council for Technology sponsors it.

I mentioned the importance of stakeholder groups. The IT industry is another important stakeholder group. So much of what the government accomplishes occurs in conjunction with the private industry, which provides much of the resources and the technical expertise. It is important to maintain that open relationship and open communications with the industry in a vendor neutral way. Organizations, such as AFFIRM and the American Council for Technology, give us an opportunity to talk about our initiatives, and our priorities in a vendor-neutral environment. We, in turn, get to understand objectively where the industry is making advances.


Elizabeth M. Ferrarini - She is a free-lance writer and IT consultant from Boston, Massachusetts. Reach her at elizabethferrarini@yahoo.com.

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Kermit the Frog isn't the only one that knows it's good to be green. Just about every major U.S. corporation has made a commitment to become greener, especially greening their data centers. Symantec, the $6 billion security software company, has gone one step further and demonstrated that green initiatives, especially in IT, can yield cost savings to the tune of about $46 million a year. In fact, Symantec's corporate responsibility program for 2007 outlines the company's multi-phased approach to becoming green.  The program leverages some of the company's products.

Enterpriseleadership.org recently sat down with David Thompson, Symantec's CIO, who has responsibility for the company's green IT program. Thompson oversees a staff of more than 1,300 IT professionals. Here is what he had to say:

We've taken steps to learn from its peer companies and its customers about their green efforts.

EL. Can you describe how you consolidated data centers and what benefits you achieved?

DT. We consolidated a data center in the United Kingdom into one in Tucson, Arizona. We reduced about 15,000 square feet and saved about 150,000 kilowatt hours monthly. We had about a $20,000 savings monthly just in power. Through server consolidation, we went from 1,300 servers to 700 to make better use of those assets. We saw savings of $1.5 million annually just from that server reduction. We had a $3 million annual cost savings in facilities from an IT perspective. All of these cost savings are for one data center.

EL. How many data centers did you consolidate?

DT. We did two data center consolidations. We had five data centers and consolidated down to three main data centers. Our primary data center is in Tucson. We consolidated another data center in Sunnyvale, California.

EL. What has been the cost savings from the two data center consolidations?

DT. The cost savings, including the real estate costs, were $10.1 million annually. It's a significant figure. We were a little surprised after we counted all of the dollars our cost savings added up to.  I was proud of the hard work my IT team did.

EL. How long can you go before you build or need more data center space?

DT. We see a horizon of four years and two months before we'll need more data center space. If didn't take some of these steps, we'd have a shorter time horizon. Because we took steps early, we're seeing the savings pile up.

EL. How did you consolidate the servers?

DT. We did two things. As we started the planning stage, we looked at where we would put the entire new infrastructure. We changed some service level    agreements (SLA). As we moved a server, we gave the business owner the choice of having a physical server in the new location, and having an SLA that would be six to 10 days to put in a new server. The owner would have to buy the server.  If they went the virtual route, they'd get the server in three hours and the cost would be part of the central IT cost. By changing that, we made a good case for everyone to go the virtual route. It allowed us to create a virtual farm in our Tucson data center, where all of our new applications occur. We use VMware for the hypervisor and Symantec for the infrastructure.        

EL. Do you have any life cycle management for how long these servers stay on the floor.

DT. We use our Altiris change management, configuration management database, and lifecycle management tools. We have a rotation cycle for our equipment both from an end-user perspective and from our core infrastructure. We give some of the older equipment to our labs. We contract with a company to do the appropriate disposal and recycling of hardware.

EL. Have you gone to service-oriented architecture?

DT. No. We're not in that space in this time. As we develop new applications for customer facing, we'll definitely consider it. Service-oriented architecture isn't one of our key priorities.

EL. Have you done any data consolidation throughout the company?

DT. We reduced the overall utilization of storage across all of our 46 field offices. We now backup all of the data in our field offices using our peer disk technology to duplicate the data. We're seeing data reductions close to 35 percent to 40 percent. We're also seeing savings in storage costs, power costs to keep the storage running, and commodity costs in having to buy tapes.

EL. Have you improved the reliability of the data because of doing this?

DT.
Because we have better availability of our data, and have more successful backups, we can more easily recover things for our business units or a field office.

EL. Have you reduced email storage?

DT. Over the past year, we've put in our enterprise vault technology. It allows us to vault individual's email. We put the stored mail on peer storage, which reduces our costs and it also allows us to archive quite a bit of mail on off-line storage.  The off-line storage really reduced our costs and power. We can still retrieve the data because it's on tape. This reduction in overall email has helped us reduced our legal discovery time and costs.

EL. Have you done anything to reduce energy consumption with desktops?

DT. We noticed that about 60 percent of users are online 24 hours a day. Using our workstation management tools from Altiris, we pushed green settings to all of the workstations. The power cycle in the machine powers the desktop down to sleep mode in keeping with the desktop user's time zone. This initiative has allowed us to reduce cost savings dramatically by having the machines powered down at night.

EL. Any other energy cost reductions besides the data center?

DT. As part of our productivity initiatives and our green initiatives, we deployed more telepresence around the globe. We wanted to get people off planes. Our 18 conference rooms equipped with a high-end telepresence dataport enable users to have an almost in-person experience in the teleconference. DreamWorks created the rooms, which a third-party concierge service manages. Telepresence has provided us with dramatic gains in productivity. Today, our engineers spend more time designing and working on a technology versus then waiting for and taking flights around the globe. We have some good metrics around this technology with 72 percent utilization. Through 2007 to September 2008, we've seen a $22.6 million savings in travel costs.

EL. How did you arrive at that figure?

DT. We did a year-over-year analysis all of the highest traveled city pairs. We tracked that once we went live with the new telepresence system. We saw the reduction in the city pair travel and calculated the difference year over year based on what those city pair travel costs were. That's how we arrived at the savings.

EL. Did you go to a more efficient UPS in your data center?

DT. As we've added additional space to our data centers, we've put in the newest power conservation technologies from Liebert and others. We've been using directed cooling rack units, which allow us to direct cooling to a specific area. These units have helped us to reduce our power. We have the advantage of buying nuclear power in some regions. We view nuclear power as green. In fact, about 40 percent of the power in our main data center comes from a nuclear source. We realize that some people may not approve of this?

EL. Have you been looking at solar?

DT. We don't have any solar. We've been exploring it. We'd consider it as a source of power and heat for the office space within our data center. We've included solar in one of our designs for our future data centers. Solar wouldn't be realistic for our entire data center.                                                                           

EL. Are any of your data centers near wind turbines?

DT. A portion of the power in our UK data center comes from the wind turbine in the business park.

EL. What are doing to help your customers to be more green?

DT. We give customers the option of how they want to receive their software -- either as physical media or by downloading. We've seen a higher uptake of the digital content delivery, which is a good thing. We're obviously motivating customers, especially our enterprise customers.

As part of our corporate responsibility program, we took a fresh look at our entire consumer packaging and decided to go with the new, smaller eco-friendly packaging. We reduced the package size by 48 percent and replaced the plastic case with a cardboard wrapper. Our cost savings for this effort is about $4.5 million annually cost for the packaging.

EL. What are your customers telling you about their green efforts?

DT. Many of our customers are going green because of the business advantages for cost reductions. We've been sharing knowledge with many of them. As a company, we're putting more and more green settings in our products, such as power management for desktops. For example, the Altiris end point management tools have agreed settings that we can push to workstations. We've done that internally.  We have had dialog with our customers about new requirements they want to see in our software, but they're also telling us how they're reducing costs.

EL. What is Symantec doing in the software as a service area?

DT. We're one of the largest providers of security software as a service. We have our own Symantec protection network. This software as a service allows you to backup your business to Symantec's business infrastructure. We also have a company called MessageLabs, which is the number one mail security vendor. It, too, is a software as a service offering. We also have an auto managed service in our managed security service business where we run customers' security operations centers. Software as a service is a big push for us. We see the industry shifting. With all of our experience, we're trying to be a leader in this area.

EL. What has been the overall business impact of all of these green initiatives?

DT. If you look at costs savings (including those from real estate) over this last fiscal year for all of our initiatives, we appropriated between $46 million to $47 million in savings. We're talking about significant cost savings. These are on-going savings.

EL. Do you have any new green projects you're looking at?

DT. We're continuing to drive consolidation around our infrastructure, decommissioning applications, and focusing on every aspect of our business, including a review of our research and development and our use of assets within research and development. We trying to find ways to be more efficient in that area of our business. It's just not about the backoffice. It's also about the areas where we develop products. You'll see continued savings coming from Symantec. We report on these publicly through our corporate responsibility report. I put that data in the report. I'm proud of what we've been able to do today.

EL. Is IT spearheading most of the green efforts?

DT. It's a joint effort between our government relations group, our legal department, and IT. We joined forces to package it within our corporate responsibility program. IT drives it from a green IT perspective by working with our R&D organization to make sure we have products that enable us in our business, and that can also work for our customers.

EL. Where do the green initiatives rank with the governance process?

DT. Just two weeks ago, the agenda for our CEO's staff meeting asked us to report on our status on the green IT initiatives. All of the managers and I came together and reported to the CEO and his staff on the status. The board of directors reviews the corporate responsibility report. We have much insight from our management team and our board about this topic. They support us because of the cost benefits, but also because of what it can do for the market. Our customers have started to see the value of green IT initiatives. It feels good to be in a position to add IT value to the company.

EL. What advice would you give to other CIOs about carrying out green IT initiatives to gain a business impact?

DT. You need to set a goal, to understand your baseline, and to measure your success. You might not hit your mark, but you should try. We continued to  set the bar higher and higher for ourselves.  If an IT organization can capture that data, it should feel proud and share it with their management team.

Elizabeth M. Ferrarini - She is a free-lance writer and IT consultant from Boston, Massachusetts. Reach her at elizabethferrarini@yahoo.com.

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Emerging technologies that offer medical benefit but require substantial capital investment pose a challenge to hospitals and hospital-based health systems in the United States. Dr. Molly Coye, the former director of the $16 billion budget for the California Department of Health Services, is on a mission to make it easier for healthcare facilities to deal with this challenge. In 2001, she founded a not-for-profit research and educational consortium, called HealthTech. It focuses on stimulating the investments major healthcare facilities make in enabling technologies, and helping them to make well thought out decisions in the process. She says, "We have learned that investments in a combination of imaging devices and information technology have fueled the most important healthcare advances. These technologies have improved the quality of care, reduced the expenditures on care, and improved satisfaction for patients and providers."

HealthTech's 45 members include most of the country's largest, multi-hospital healthcare facilities in the country, such as Kaiser Permanente, Sutter Group Health, and the Veterans Administration. Other members include the Centers for Medicare and Medicaid. She says, "We have more than 25 percent of the bed capacity in the country."

Enterpriseleadership.org recently sat down with Dr. Coye to talk about how HealthTech helps its members make capital investment decisions in technology.

EL. What was the catalyst that prompted you to start HealthTech?

MC. Like many clinicians in the field, I became aware of the quality problems in healthcare that emerged in the early 2000s. In fact, I participated in the Institute of Medicine's Committee on Healthcare in America. We wrote two reports - To Err is Human and Crossing the Quality Chasm - both of which became a catalyst for re-directing the healthcare industry. In summary, the reports said that we needed to overhaul the chassis of a bad healthcare system. We identified several pieces to that change. The most important one was the need for investments in technology.

I founded HealthTech as a not-for-profit organization in order to stimulate and to advance the adoption of technology in healthcare, including biotechnology, information technology, and devices and imaging, and pharmaceuticals. Since 2000, we have been tracking emerging technologies and research to understand their potential and real impact in healthcare. We look at technology in two ways -- what's on the market today and how people are adopting and carrying it out, and what will be on the market in the next three years to five years. Our research falls into 30 categories that cut across four broad areas: biotechnology, information technology, medical devices, and pharmaceutical,

EL. Can you give me examples of how you have helped your members make capital investment decisions about technology?

MC. We work across many different areas. A big win for some of our members included how to make the decision about each generation of a Picture Archiving Computerized Storage system (PACS). We stressed the important of enterprise thinking about a PACS system because it requires a huge investment. Many facilities would buy just a PACS system for their imaging departments. A couple of years later, these facilities realized that they had to extend the system to cardiology and to other parts of the facility. We stressed the need to plan, from the beginning, for this as a platform for storage of images across the organization.

We worked with our members on handling the decision to upgrade from a 16-slice CAT scan to a 64-slice CAT scan moving into coronary CT angiography. We strongly suggested that our members should prepare for the coronary CT angiography. They would at least have the 64-slicer near the emergency room. As a result, they could begin to build a system that routinely processes a certain portion of the potential myocardial infarctions through the coronary CT angiography.

Some times, we might have to caution our members about the timing of a specific investment in technology. In the early 2000s, many clinicians became enthusiastic about the long-term prospects of robotic surgery in urology. Some facilities had this technology because a donor paid for the initial acquisition. These facilities, however, did not have a plan for the continued use of the technology. In fact, some prices of equipment sat around gathering dust. In 2003, we told our members to adopt robotic surgery slowly, and to build a plan for how to extend it beyond urology into cardiology, as well as other areas.

EL. What type of a payoff do healthcare organizations get from systems that generate metrics about care delivery, such as number of patients discharged by 3 p.m.?

MC. These systems really pay off for healthcare organizations. These systems, however, have many pieces, such as computerized physicians order entry and electronic intensive care unit. There are also executive intelligent systems or dashboards that collect information to help the executive team make investment decisions.

EL. Are healthcare organizations deficient when it comes to technology investments?


MC. Healthcare facilities do not invest enough money in technology or invest in the wrong things. This happens for several reasons. The most influential physicians on the medical staff might prefer a technology. Unfortunately, the technology might not be the best for the community, or it does not serve the long-term survival of the facility. Healthcare organizations often get caught in a gridlock where physicians, hospitals, health plans, and even consumers try to maximize their own interests. They ignore initiatives that would reduce costs and improve quality. These things would require everyone to give up a little bit. That's probably the most important reason why health reform has never succeeded.

EL. What methodology do large healthcare facilities use to measure the effectiveness of their technology investment decisions?

MC. There is no single methodology. We have seen a very wide range of opinion about whether you can use a classical ROI at all. If you do, how do you structure for multi-year investments, especially if the parts of the return include improvement, safety, quality, and financial performance. We believe that most administrators of large hospitals and multi-hospital systems have installed electronic health record systems primarily for quality and safety reasons. They have tried to do a competent job of comparison-shopping in order to understand, not just the initial cost of the system, but the on-going operating cost, and the ease of acceptance by the clinical providers. They want to make an intelligent decision about what is the best timing, what is the best product, and what are the best rollout strategies.

EL. How do you guide your members to carry out their governance process?


MC. We help our members with how to present complex technology issues to the board. Usually, board-level decisions focus on where to allocate investment dollars. Do you put a large chunk of money into an electronic health record system, a new imaging system, or a chronic disease program? We help our members to sort through those kinds of issues. For example, we show them how to rank the different strengths of risk and the positive income values of different technologies. Using an array, they can see, for example, which technologies have a relatively lower risk and a higher yield for the things the board would find important. To this end, they might want the portfolio for the next year to have a risky, but high-potential-yield investment and several lower-risk investments that will payoff.

EL. How do clinicians influence investment decisions in technology?

MC. They play an indirect role because often their decisions about technology will either accelerate or slow the adoption of the technology.  For example, an administrator of a multi-hospital facility can clearly understand that the computerized ordering entry system will save money over a two- to three year period. This system will also improve patient safety. On the other hand, clinicians might resist adopting a new process, especially if it requires them to use a computer to enter an order for a medication.

To this end, the decision-making process for investments in technology should include clinicians in some way. If the process does not include physicians, then they might threaten and might frustrate the attempt to implement technology. Some clinicians, especially, physicians, have little experience thinking about systems -- why it might be worth investing the extra time, labor, and money in put in an electronic health record system.

Many clinicians see a direct disincentive in investing in some technologies. For example, often pulmanologists view the electronic intensive care unit with much skepticism. Because they think it will decrease their income, they resist it strenuously. In some cases, they have essentially agreed to carry out a portion of the electronic intensive care unit, usually about half way. The nurses use it, but the doctors say, 'I won't let it handle any orders for me. I have to do each order or approve each order.'

EL. Do you think this physician resistance has to do with the person's age?

MC. Not really! We see across that country that it is not a one-to-one correlation. It has also to do with whether or not the physicians are organized into groups. Often in groups, physicians get a chance to start thinking about systems. We also see a very bimodal distribution where the very young physicians and the relatively older ones are interested in technology. We find that physicians in their late 30s and in their 40s tend to resist technology. Because the older physicians are within 10 years of retirement, they feel more economically comfortable, and thus they can afford to be interested and curious about technology. This isn't the case with physicians in their late 30s and in their 40s. They see technology as a lessening of their usefulness.

EL. Should technology leaders in healthcare facilities have a medical background?

MC. Not necessarily! It's great if a CIO or a CTO has a healthcare background in either nursing or pharmacy. On the other hand, many CIOs and CTOs who do not have a medical background have made important contributions to their healthcare facilities. They can bolster their knowledge of healthcare by taking continuing education sources. The most effective approach includes teaming a CIO or CTO with a chief of medical informatics or chief nursing officer. In some cases, these individuals might report directly to a CIO or a CTO. An organization should not isolate a CIO or a CTO. In fact, many healthcare organizations still do not include the CIO on the leadership team. We have seen a decrease in this trend among the large healthcare facilities.

EL. What information are you giving to your members about what to expect from the Obama administration?

MC. During the past few years, the government has become more aggressive about Medicare/Medicaid not paying for serious efficiency and serious quality problems, such as a physician cutting off a wrong limb. As a result, healthcare organizations have to file more paperwork about efficiency and quality problems. We are telling our members that they are going to see a combination of bad economic times, and the intent to make the healthcare system more rational, despite contradictory incentives. They need to think about investing in technology differently.  They need to leverage technology to improve service delivery and to increase efficiency. Efficieny also includes, not only making errors, but also not spending as much to get the outcome.

EL. What things is your organization working on now?

MC. Because we want to help seniors stay independent in their homes, we have a new initiative to disseminate information about accelerating the adoption of again technologies.

Elizabeth M. Ferrarini - She is a free-lance writer and IT consultant from Boston, Massachusetts. Reach her at elizabethferrarini@yahoo.com.

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Sybase is no stranger to tough economic periods. Before 2001, Sybase was a database company loosing more than a $100 million a year on revenues that peaked at $700 million. Other problems included high employee turnover and doom and gloom comments from Wall Street analysts and computer industry analysts. Today, Sybase has revenues of more than $1.1 billion, backed by solid profitability and double-digit growth in key market segments. Sybase also has emerged as leader in embedded software for analytical applications and for mobile devices. Sybase might be on the road toward meeting its $2 billion revenue mark, but a key part of the corporate strategy calls for controlling costs and finding ways for the company to improve business processes. Jim Swartz, Sybase's CIO and vice president, says, "Our mantra is to simplify, to standardize, and to consolidate."

Enterpriseleadership.org recently sat down with Swartz to talk about the initiatives his organization has put in place to deal with this economic downturn. Here he is what he had to say:

EL. Has the economy effected Sybase in any way?


JS. The issues aren't so much cost-cutting or tightening our belt. We are working to make the company more effective and efficient with the resources we have. Let me provide some example these initiatives.  Certainly, we travel less than we used to do. As a means to help us to be more effective, we have added videoconferencing into our mix of toolsets. It allows us to work from almost any place at any time. As a result, we can create the 7 by 24, 365 global manager to support the company. This technology has proved to be very effective. Even if we weren't in a down economy, this initiative would help us to be more effective and efficient to support the company with a global workforce. The net effect of cutting travel and introducing videoconferencing has made our people more productive, especially with respect to communicating across our many locations. It has also impacted the way managers work. For example, we allow our managers to work at home so they can have communications at more convenient times with people in other locations.

EL. Whose technology are you for videoconferencing?

JS. We use a mix in the sense that Cisco provides the backbone technology and the desktop conferencing technology, but in our conference rooms we use Polycom's technologies.

EL. Are you using 3D telepresence for videoconferencing?

JS. No. We use a high-definition system. As we all know, videoconferencing technology has been around for more than 30 years. Every few years it goes through a new generation, which supposedly creates promise. Now the technology is at the point where it is very effective. We don't get the old Max Headroom-type displays of people at the other end, as well as broken voices. From a cultural point of view, we need to figure out the most effective way to use this technology. How do you really have a videoconference between two engineers? How do you have a videoconference where one person is broadcasting to multiple sites? How do you have an effective videoconference between two videoconferencing rooms, as well as to show the content materials to people at the other end. These materials might include training sessions.

EL. Who is doing the training to improve the use of videoconferencing?

JS. Right now, IT does the training to help people make better use of videoconferencing. We are coming up on the curve. We have discovered some interesting aspects of videoconferencing that we didn't expect. For example, just the location of the camera in the room with respect to lighting can make a big difference in the image quality. If the camera has a long view on the people sitting at the conference table, they appear as if they are sitting at the end of a tunnel. You want that camera to zoom in so you get the value of seeing each person up close and personal. The goal is to try to emulate a telepresence capability.

EL. What have been your cost savings since you want to videoconferencing?

JS. We are looking to save between $2 million to $3 million a year.

EL. What other things have you done to take cost out of the business?

JS. Certainly, on the data center side of things, we have done much with virtualization. Say you had one server per application before virtualization. Now you might be able to create a virtual machine on a single server or up to as many as 10 to 15 virtual machines on that server. You can save a significant amount of CPU purchases.

EL. How many servers have you virtualized and whose hypervisor do you use?

JS.
Because we provide software for almost all devices, we have hypervisors from each of the major vendors. We manage both enterprise applications and engineering applications. On the enterprise side, we have virtualized more than 50 percent of our enterprise applications. On the engineering side, we have virtualized many of the development environments for the engineers. The unanticipated consequence of that virtualization is that they created more virtual machines that we expected they would. We don't have to wait six months for the whole procurement cycle to circle around so we can bring in machines. We can provision a new virtual machine in just a few hours, especially if we give the engineers the ability to establish those virtual machines.

EL. Have you moved to Web 2.0 or any kind of cloud computing?

JS. Certainly, we have Web 2.0 applications, and we are looking at cloud computing as a future. We are working towards first creating our own internal cloud. As more and more vendors provide cloud computing, we will move our cloud outside of the company to create a virtual data center.

We have operated on the idea on simplifying, standardizing, and consolidating our data centers. In prior years, we had up to 30 data centers. We now have three data centers, including a disaster recovery facility. With virtualization and cloud computing, we are seeing that there potentially will be an impact on the way we do disaster recovery. It will also give us the ability to create, what we call virtual data centers, where people will look at ones we have left and see it as one data center.

EL. How much money have you saved through virtualization?

JS. Through virtualization, we have driven down about $3 million a year. What is important in 2006, we looked at our data center in Dublin, California, and recognized that we would run out of power and cooling in this data center by 2009 unless we did something. Our action was to virtualize, to retire old servers, and to use the technology that writes the images of some servers to a backup storage device, which allows us to bring the images back near term. Because of those efforts, we have extended the life of that data center out to 2017. We have cut the cooling costs as well. We have virtualized not only processors, but storage as well.

EL. Have you replaced any of the uninterruptible power supplies?

JS. We have replaced some of them with more energy-conserving devices.

EL. Are you using any hydroelectric or nuclear power?

JS. Being in California, we probably draw on some nuclear power, but we aren't tied directly into nuclear power. Our efforts have mostly been on the conversation side internally, rather than on the supply side.

EL. Have you had any staff reductions in IT?

JS. We have reduced staff a bit, but it has been a result of requiring new skillsets from our folks. We have been realigning what we do as we move from older technologies to mobilizing much of our workforce. As a result, we have changed the way we operate, transforming, not only IT, but helping to transform the business as well.

EL. How are you keeping up the morale in IT giving the economic downturn?

JS. Keeping up morale up has always been an important aspect of what we do. Because we have embarked on a number of very exciting forward-thinking projects, we have engaged our staff in what these projects will mean to the company. These projects include the virtualization of the data center, the virtualization of the desktop, and the business intelligence types of projects on the application side, and the development of new applications that help the business to grow.

Our role within IT is to improve the performance of the business as a whole. We have a stated objective within the company to grow to $2 billion over the next several years. Even in this economy downturn, we are still pursuing this objective. The projects we have in play focus on doing that. For example, to make our sales force more effective, we are giving them better information to use for forecasting, and providing a greater ability for them to work with our partners. We are also improving our partners' abilities to work within the company. Our partners also include our business partners, such as our finance people.

We went to make our managers more effective and more efficient with the use of new technologies, especially when they are out of the office. Better mobile technologies, which we develop inside of IT, will enable them to respond in real time. Many of the things I am talking about deploy the application of our own Sybase technologies, especially for mobile email, and mobile applications. Our analytics tools will help our sales and marketing teams understand what our customers' needs are.

El. Of all of these initiatives, which ones will have the greatest business impact?

JS. In terms of business impact of helping the company grow, we have two key ones. The analytical marts help us to understand our forecasting. They work together with products Salesforce.com and some of our marketing tools. As a result, we can better project sales estimates, such as much business is going to come in for a particular quarter. Activities that use our analytics tools are very important. Building on our own tools, we have created portals which give our partners better access to information they need to be more effective sales folks. Much of our growth will come from our partner establishments as well.

El. What are you trying to improve upon within IT?

JS.  We are trying to improve upon partnering with the business folks. All of these projects to a large extent are transformational. IT is changing the way it does business, but IT is also helping the business change the way it operates to be more responsive to our customers and our partners to help grow the company.

EL. How do you work with the CFO?

JS. I report to the marketing organization. We used to be part of the financial organization. Because we are an outreach organization dealing with our customer community, we have seen that relationship change over time. The finance organization is a partner of ours. We work very closely with them, especially on developing systems that help report our financials more effectively, that manage our order entry systems more effectively, and that help develop strong relationships in understanding our financial numbers. In addition to finance, other important partners include human resources, legal, and marketing and sales. Our people are becoming more and more business oriented as much as they are technically oriented. We are seeing a major shift where many of our information engines are becoming software as a service engines. They bring the data back inside, and analyze it with our analytics tools. This process brings our people to a different position in the organization. They become very much oriented towards exploiting the business opportunities of IT, rather than just the technology opportunities.


Elizabeth M. Ferrarini - She is a free-lance writer and IT consultant from Boston, Massachusetts. Reach her at elizabethferrarini@yahoo.com.

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