Those companies that get IT alignment right experience significantly larger business growth than their peers. They also see their IT costs go down. On the hand, many companies fall prey to the IT alignment trap by over aligning and, in turn, introducing more complexity into the organization. These are the findings of a study done by C.R. (Rudy) Puryear and his colleagues at Bain & Co. In early 2007, they surveyed 500 major organizations in North American and in Europe to understand the relationship between getting IT right, and to determine the affect IT alignment has on business growth and performance. The Bain team also did in-depth interviews with about 30 of these organizations.
Drawing from the research findings, Puryear, in this podcast, explains why organizations have become victims of the IT alignment trap and how they can avoid it. He says, "IT really matters. If you get IT right, it can be a critical enabler of business performance, profitability, and growth. On the hand, many organizations find IT to be more of a barrier, than an enabler of business performance and growth. These organizations still haven't reached the right balance of alignment and of effectiveness. If they over align, they most likely will fall into the alignment trap. Instead, they need to step back, understand where they are, to begin to focus on effectiveness, and then to consider alignment.
Bio
C. R. (Rudy) Puryear is the leader of Bain & Company's Global IT Practice, as well as a Bain partner in Chicago. He has more than 25 years of experience advising senior executives about leveraging technology to enable strategic change. Prior to Bain, he was president and CEO of Lante Corporation, a leading eCommerce consulting company, where he managed a successful IPO in February 2000. He also served as Andersen Consulting's (Accenture) global managing partner for eCommerce, and prior to that, was responsible for building and leading the firm's IT strategy practice. Puryear did his undergraduate and graduate studies in computer science at North Carolina State University.
No one knows more about building the next generation enterprise than Vaughan Merlyn, executive vice president of BSG Concours, a unit of the BSG Alliance. In addition to transforming itself into a next generation enterprise, BSG Concours focuses on helping CIOs and other business executives transform the performance of IT organizations, align IT and business strategies, and carry out technology-enabled business change.
In this podcast, Merlyn explains the three levels of the Business IT Maturity model, which lead to the next generation enterprise. Each model level has a demand side maturity (What is the appetite like for IT?) and a supply side maturity. (How can the organization satisfy that appetite and keep it stimulated?) In level one, business executives worry about the expense of IT more than the demand for it. IT in the level one supply side exists to keep the lights on. In level two, the demand side becomes more aware of enterprise processes as driven by the siloed functional business units, such as HR and marketing. The supply side starts to automate the enterprise with systems, such as ERP and CRM.
Level 3 of the Business IT Maturity model presents a distinct departure from the other two levels. The appetite for the demand maturity hungers for innovation, and growth. Merlyn says that it's no longer an enterprise process, but both an intra-enterprise process and inter-enterprise process. Meanwhile, the IT supply side becomes more collaborative, agile, innovative -- on top of all of the level two enterprise stuff.
Merlyn says that being a maturity model, the level one stuff never goes away, and people develop a higher appetite for it. He says, "Many companies today fall into the level two space. On the other hand, high-technology companies, financial services firms, or Web-based companies, such as google.com, have made it to level three. These companies invest more in technology that the others. Most of them have started to reap the benefits of service-oriented architecture."
In this podcast, he also explains why CIOs need to care about this, and why best IT practices, such as the IT Infrastructure Library, are necessary, but not sufficient to reach level three of the Business IT Maturity model. He says, "If CIOs have a level three construct, they can get any business executive to appreciate the value of IT to the organization."
Bio
Vaughan Merlyn is executive vice president of BSG Concours, a unit of BSG Alliance. He oversees the IT segment of BSG Concours' multi-client research, executive education and insight, and advisory services. He has helped numerous Fortune 500 companies to articulate their business-IT strategies, transform IT capabilities, and to increase the value they realize from technology.
Merlyn co-authored the book, Development Effectiveness: Strategies for IS Organizational Transition, and wrote the Annual CASE Report, published by CASE Research. He has spoken more than 450 major conferences and seminars around the world.
Previously Vaughan was a partner at Ernst & Young’s Center for Business Innovation, where he headed the firm’s global research into IT effectiveness and business change implementation. He received his bachelor’s degree in electrical engineering from the University of Salford in the United Kingdom.
During his 40 year career in information technology, Tom Trainer, the former corporate CIO of PepsiCo, has seen it evolve from the back office shop to the critical cornerstone of most organizations, regardless of their size. At PepsiCo, he was responsible for all technology decisions and IT operations. His well-honed leadership skills enabled him to work in close collaboration with the company's division leaders to leverage IT as a driver of business growth and competitive advantage.
Transforming IT organizations in Fortune 1000 companies has played a major role in shaping Trainer’s career as a corporate CIO. While he was CIO of Seagram, he successfully enabled a major business process transformation, which included a new manufacturing system and a new supply-chain system. He also carried out a similar set of business process transformation initiatives for Reebok Worldwide and for Eli Lilly.
Now retired, Trainer's consulting and research work for BTM Corporation focuses on aligning business and technology in global organizations with the goal of creating sustainable innovation. In this podcast, Tom Trainer draws from his CIO career to discuss quality practices, transformation, governance, business and technology alignment, and innovation. He also provides some advice for CIOs who face a pending company merger or a changing or the guard in executive leadership.
Bio
Tom Trainer is a well-recognized and awarded leader in the business technology field. He has served on the BTM Corporation's board of directors in various capacities from its inception. As executive chairman of BTM Global 2000, Mr. Trainer focuses on executing the company’s growth plan in the area of Global 2000 customer expansion, industry alliances, and strategic partnerships. He is a contributing author for The Alignment Effect and a co-author of Winning The 3- Legged Race.
Most recently as PepsiCo's senior vice president and chief information officer, he led the company's 2,300-member information technology organization, PepsiCo Business Solutions Group (PBSG), where he had an annual operating budget of more than $1.4B. He was responsible for all technology decisions and operations, and worked in collaboration with PepsiCo's division leaders to drive business growth and competitive advantage by leveraging information technology across the company.
The power of a X86 server with four array cores has increased dramatically according to Moore's Law. At the same time, enterprises, through the success of scale out, now realize that they have more physical servers than they can deal with. This situation has resulted from the IT scalability best practice of installing a single instance of an application per OS on a single scale. Many organizations now find themselves with 1,000 of servers, with increasingly high energy bills, and with no data center space to house these devices.
Simon Crosby, the CTO of Citrix's Virtualization and Management Division, and chief evangelizer of the Xen open source hypervisor, says that server virtualization rationalizes the X86 server base by consolidating it into fewer devices, by reducing the power consumption, by minimizing the cooling requirements, and by controlling real estate management costs. He says, "It's an emerging property of the explosion of the demand for the X86 platform."
In this podcast, Crosby talks about what affect issues like globalization have on the concept of server virtualization, how server virtualization can affect an organization's total cost of ownership, how IT organizations can avoid making server virtualization more complex than it needs to be, and why the IT Infrastructure holds the key for effective server virtualization.
Bio
As chief technology officer for Citrix's Virtualization and Management Division, Simon Crosby evangelizes the Xen open source hypervisor. This former XenSource CTO also oversees XenEnterprise research and development, technology leadership. and product management, and maintains a close affiliation to the Xen project run by Ian Pratt, the founder of XenSource. Before Citrix XenSource, he held positions as a principal engineer at Intel, and as president and CEO of CPlant, a network optimization software vendor. Crosby has written more than 35 research papers and patents about data center and networking topics including network and server virtualization. He speaks frequently at LinuxWorld, Interop and the Server Blade Summit.
From her early days as a doctoral student in organizational change at Tufts University to her post as VP of strategy and business development at Compaq Services, Dr. Ellen Kitzis has come to understand the ebb and flow of technology's impact on business organizations. She has consulted, spoken, written, opined, and advised corporations in every industry and of all sizes. And ,since 2000, she has headed up Gartner, Inc.'s Executive Programs, a membership-only program for more than 2,000 CIOs around the world.
Now, she, along with her colleague Marianne Broadbent, think they know what it takes for CIOs in Global Fortune 2500 companies to succeed, and they've written a book about it: The New CIO Leader -- Setting the Agenda and Delivering Results, published by Harvard Business School Press. Kitzis and Broadbent have searched all corners of the world for CIOs who carried out effective strategies or spearhead corporate innovation. Anecdotes in the book range from British Airlines to a $5 billion Australian platinum extractor called Anglo Platinum. She says, "The book doesn't assume that CIOs in the U.S. get it right." And will reading the book help CIOs "get it right," and become the leaders that IT needs today? Tune in to this podcast interview, and decide ... is this book the toolbox you'll need to take your career to the next level?
Bio
Dr. Ellen Kitzis is a group vice president at Gartner, Inc., a major computer industry analyst firm. Since 2000, she has been part of the global leadership team of Gartner’s CIO Executive Programs (EXP), which services more than 2,000 CIO members. She currently leads the EXP Americas team. She is the co-author of The New CIO Leader -- Setting the Agenda and Delivering Results, published by Harvard Business School Press.
Prior to returning to Gartner, Dr. Kitzis held the position of vice president of strategy and business development for Compaq Services and was the worldwide head of Gartner’s Dataquest IT Services Group. She has held previous positions at the Ledgeway Group and Consulting Statistician, a Crowntek company. She holds an undergraduate degree from Boston University and a doctorate in organizational change from Tufts University.