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Vinod Sivarama Krishnan – CIO Global, Jubilant Life Sciences Limited, India.

 

Jubilant is a global leader in Pharmaceuticals – specifically Contract Manufacturing and Contract Research, Generics & Specialties. The group also has a significant presence in Food Service, Oil & Gas Exploration and Prospecting and Retail.

 

Vinod is a Business Technology Leader with over 18 years of global experience in delivering business solutions and creating and leading IT organizations across several business domains.

 

The Center for CIO Leadership has requested CIO members and other industry experts to answer three questions regarding predictions for the CIO in 2012. Here are my answers to these three questions.

 

What are your top 3 CIO priorities for 2012?

 

  1. Data to Information using Analytics – In the highly dynamic world we live in with increasingly short business cycles, my businesses need to understand where they stand in near real time and to be able to determine the impact of changes in the environment to their business model and performance and make better decisions based on this information. While we are able to collect more data, we’re certainly not able to process it into useable information quickly enough for businesses to actually use in their day-to-day operations. I expect just the process of working on this initiative to lead to more internal visibility of the key drivers and that the very process of measurement will drive improvement.
  2. Flexibility of Infrastructure and Applications – Better analytics will lead to more frequent changes of direction, both strategic and tactical, leading to a need for more flexible infrastructure and applications. This will challenge me and my team to rebuild (or in some cases, build) our platforms in a more granular, more flexible way to allow for these changes and respond to them as quickly as possible. Already the inability to scale (or reorient) our systems emerges as a big constraint in business flexibility, and that concern will have to be taken off the table as quickly as possible.
  3. Finding and Retaining IT Management Talent – Frequent changes in direction and scale will require IT leaders with a different set of skill sets – more flexibility, more platform or tool agnosticism with the ability to view business requirements and processes as services to be provided using standard sets of tools. Significant empowerment of business users (by design) to reconfigure their processes within broad controllership lines will be essential, requiring IT to step out of the business of managing simpler aspects of process redesign. This will require a very different mindset, and the challenge will be to find (or build) and retain the right people.

 

How will 2012 be different from 2011 for you as a CIO?

 

For me, 2012 will be a year of

 

  1. Broadening (more geographies, more P&Ls) and deepening (more functionality, more interconnectedness) of the standard platforms put in place for the group. I will also need to create appropriate cost-effective support mechanisms for the standard platforms. My team and I will need to succeed in our ongoing implementations, create a track record of successful delivery and ensure that we build momentum for these platforms by measuring and highlighting business impact and benefits achieved. In contrast, 2011 was more about building the base of the standard platforms, creating several quick proofs-of-concept to understand the technology and illustrate benefits and investing in building expertise on these platforms.
  2. Increasing uncertainly from the business. I expect more starts and stops as the business responds to market and economic challenges, or moves to address opportunities being created. This will mean an increasing need to find or create flexible business systems. The cost of this flexibility and its impact on the current and future bottom line will need to be quantified and reviewed on a continuous basis. Business units which understand the value of this flexibility and are willing to fund it will reap significant advantages over 2012 itself, and certainly over the next three years, and it will be my job to help them understand this value.
  3. Increasing demands on IT. As we move from the more basic deliverables to more evolved needs, demands and expectations will grow. Increasing consumerization of IT and greater understanding of IT in the executive suite will lead to increased pressure to deliver. Now that most CEOs and Directors come from a generation that has grown up with a good understanding of IT, it is significantly harder to expect key technology decisions to be made from within IT or expectations to be set solely by IT. Expected lead times to new functionality (in line with shorter business cycles) will now be significantly shorter, and my teams can expect to work on several smaller projects with defined benefits simultaneously as opposed to larger projects with longer payback periods.

 

What organizational or industry shifts are you expecting in 2012?

 

  1. As a diversified conglomerate present in many high-growth verticals, I expect several new opportunities and threats, possibly simultaneous, to come out of the current economic conditions. I expect that responses will range from hunkering down to growing aggressively, making common strategies across the group difficult to come by and requiring more nuance to allow for specific market and economic differences globally and across industries. As growth slows in some segments, I expect some consolidation of processes and adaptation to last year’s growth.
  2. I expect a shift to basics and more focus on controllership and compliance to minimize the probability of incidents due to rapid change of systems and processes. Specifically there will be a focus on ensuring quality of process, product and service irrespective of internal changes within the organization (which will be mostly focused on efficiency and cost).
  3. Rapid increase in customer mobility and the availability of connectedness will call for large-scale redesign of business models, processes and systems to enable shorter reaction times and quicker responses to market and economic conditions. Mobility will fundamentally alter business models in several parts of our business and render some historical advantages redundant – and hopefully create some new advantages for first movers!
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The Center launched a special blog series on CIOs’ predictions for 2012 to hear from members on  top-of-mind issues and expectations for 2012. We have invited a few Center CIOs and industry experts to weigh in on three questions regarding what 2012 will bring for CIOs. These are the three questions each Center member responded to:

 

  1. What are your top 3 CIO priorities for 2012?
  2. How will 2012 be different from 2011 for you as a CIO?
  3. What organizational or industry shifts are you expecting in 2012?

 

Some took a more direct approach, answering the questions as written and others took a more indirect approach to answering these questions in their blog post. In both cases, the Center members took the time to develop unique and interesting 2012 predictions that will be valuable to your own preparations for next year:

 

  • Carlos Francavilla, Director, BIT Company, Argentina, argues that the convergence of the Internet, Web 2.0, and mobile technologies have created a disruptive shift in business for 2012.
  • Arun Gupta, Customer Care Associate & Group Chief Technology Officer, Shoppers Stop Limited, India, offers 11 predictions for 2012 and beyond.
  • Paul Ingevaldson, Former Sr. V.P. International and Technology, Ace Hardware Corp. (Retired), U.S.A, believes that three world events will have more effect on the IT department’s priorities in 2012 than any time in recent history.
  • Javed Mushtaq, CIO, Pakistan Telecommunication Cooperation Limited, lists cost rationalization, it commercial lab - cloud computing and security / business continuity as his top three priorities.
  • Vinod Sivarama Krishnan, CIO Global, Jubilant Life Sciences Limited, India. suggests that 2012 will be different from 2011 because it will bring broadening and deepening of the standard platforms put in place for the group, and it will bring increasing uncertainly from the business and increasing demands on IT.

 

Read these posts to learn what these members believe is in store for 2012 and beyond. We encourage you to comment and share your own views on what they predict — there is lots of food for thought in their comments and ideas.

 


 

Send us an email if you would like to provide your 2012 predictions in a blog post.

 

We will continue to update this post as other members provide their 2012 predictions.

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Javed Mushtaq, CIO, Pakistan Telecommunication cooperation Limited, Pakistan, Wired and wireless telecommunication.

 

IT professional, with 24+ years of IT leadership experience in Telecommunication, Financial, Health Insurance, Software House, Petroleum industries and in governance sector. Experience in business-IT alignment, designing, developing and implementation of state-of-the-art IT solutions to support business.

 

For the last seven years, I have led two telecom operator’s IT department - one for a green field operator and one for the largest and the oldest Telco (130 years) of Pakistan. During this period a state-of-the-art infrastructure was designed and developed, which includes the establishment of a tier III data centre, Security / Risk management, DR site and business continuity procedures. In the area of customer service and agile product development, CRM solutions for wired and wireless products.

 

The Center for CIO Leadership has requested CIO members and other industry experts to answer three questions regarding predictions for the CIO in 2012. Here are my answers to these three questions.

 

What are your top 3 CIO priorities for 2012?

 

  1. Cost Rationalization

Year 2012 will continue to see IT cost rationalization due to the financial crisis and political instability around the world. The IT industry will transform from CAPEX model to OPEX model of spending, with more of a revenue share model than a typical customer- vendor relationship model. Hardware and Software services will become more commoditized and will be consumed as service, rather than as company assets.

 

  1. IT Commercial Lab - Cloud Computing

IT will be taking a more proactive role in the area of product development than before as a business enabler; IT will transform from fulfillment role to concept to market role for the organizations. Especially in the telecommunication sector, where the conventional revenue streams are drying up, more ICT products are required for stickiness and revenue enhancement. For ICT projects, IT will take the lead on concept to market the product process. During this process IT will implement the product in their labs, mature the process of marketing/selling and supporting the product for commercial use, with IT department being the first customer of the product/service. One of the examples is public cloud.

 

  1. Security / Business Continuity

The enhanced role of security will be seen in the next years; security will not be limited to securing the network from hackers, but will also be extended to ensure operational continuity with agreed SLA with business, in order to manage business expectations.

 

How will 2012 be different from 2011 for you as a CIO?

 

IT will be the differentiating factor for the business, more process agility/automation and more business intelligence will be required to compete in the market by business. CIOs will need to prepare themselves and the IT department for this transformation.

 

What organizational or industry shifts are you expecting in 2012?

 

Convergence will happen between the products, technologies and roles. With reference to telecom post- and pre-paid will be converged and payment method will only be the differentiating factor, with all other factors common like customer care/tariffs etc. The communications and information technologies will be truly converge under ICT one domain.

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Paul M. Ingevaldson

Former Sr. V.P. International and Technology, Ace Hardware Corp. (Retired)

U.S.A.

 

In my last position at Ace Hardware, I was responsible for all IT operations at Ace. In addition, I had responsibility for Ace’s international business with stores in over 70 countries. I previously worked at Sears and was in IT for over 40 years upon my retirement.

 

Top three CIO priorities for 2012

 

I believe that world events will have more effect on the IT department’s priorities in 2012 than any time in recent history. The major events I’m referring to are:

 

  1. The perceived recovery of worldwide financial markets
  2. The U.S. Presidential elections
  3. A major cyber warfare attack

 

Let me discuss these developments one-by one. I believe that there will develop a consensus by mid-2012 that the worst is over and that there will be growth again in the major western economies. Once this belief begins to pervade the mindsets of corporate boards, there will be lengthy discussions on how to maximize competitive advantage and begin to utilize the hoards of cash that is sitting on balance sheets.

 

These growth decisions will put great pressure on IT budgets since most CIOs have been cutting costs and downsizing during the last several years. As usual, companies will have no sympathy for the plight of an understaffed IT department and will expect IT to react quickly to the demands of the business. Once again, IT’s ability to move quickly will be challenged.

 

This will likely result in more outsourcing, cloud solutions and ERP solutions. There will be little time to evaluate long-term impacts. Instead, the cry will be to implement as fast as possible for the good of the corporation.

 

I believe this trend will also spawn a dramatic increase in mergers and acquisitions. This will have an even greater impact on IT resources since IT is usually brought into the picture too late and after the timeline has been negotiated. These actions tend to cause the development agenda to be put on hold and field expedient solutions which are favored just to get the work done.

 

The second major trend will be the U.S. elections. Again, if businesses begin to feel that a more business-friendly administration will win and taxes may be reduced, the power of the U.S. markets will be unleashed. This will have an equal if not greater effect on IT than was mentioned above.  Combine an improving financial environment and a business-friendly Washington, D.C., we would have the beginnings of a renaissance in IT development and great pressures on IT departments to deliver innovative solutions to move their companies forward.

 

The third trend that will impact IT in 2012 will be outside cyber attacks. Over the past several years, we have seen a rising escalation in these incursions. So far, none have had lasting effects on countries and companies although I’m sure some attacks have not been reported due to public image concerns. On an international scale, the attack by Stuxnet on the Iranian centrifuges is a case in point. The Economist magazine had a cover story about cyber warfare in its July 3rd 2010 issue. The U.S. now has a cyber command established in 2009 and commanded by a four star general.

 

I believe that there will be a major attack somewhere in the world in 2012 and this will result in placing even more attention on IT by corporate boards and management to assure protection from similar attacks. This will put pressure on CIO’s to learn more about the subject, enhance internal security measures and prepare action plans should the worst occur. It will become clear to business that this is a major vulnerability that could put their company’s very existence at risk.

 

Therefore, I think that it is necessary for CIO’s in 2012 to become more politically savvy and more internationally savvy in order to anticipate the development of these trends.  In addition, CIO’s should be thinking today of how to protect their firms from attack and at the same time figure out how to grow in the post-recession economy. As usual, the CIO role is ever-changing, demanding new and different skills as the world adapts to growing technology dependence.

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Arun Gupta, Customer Care Associate & Group Chief Technology Officer, Shoppers Stop Limited, India

 

You can read more about Arun on his blog Oh I See ! (CIO Inverted)

 

The Center for CIO Leadership has requested CIO members and other industry experts to answer three questions regarding predictions for the CIO in 2012. Here's my approach to answering thse questions.

 

Like the sun goes down in the west every day, the earth goes round the sun, people make New Year resolutions and the IT industry makes predictions for the coming year. These lists offer hot technologies, CIO priorities, business priorities, technologies that will not last the year, ad infinitum. So what kind of list am I going to create ?

 

Every CIO already knows his/her current priorities, for the next year, and over the next 3 years (broadly) that fits in somewhere in the organization long-term strategy. These are dependent on many factors, some are (though not limited to) industry, size of the organization, geopolitical situation, global market dynamics, consumer sentiment, organization dynamics, profitability of the company … The broad collation of priorities through research conducted is generic enough to statistically fit over 80% of the CIOs globally and is available free or paid depending on whose list it is. So I will not pursue this line.

 

Different matrixes once again based on widespread research and opinions will tout waves, quadrants, hype curves, scatter charts, bubble charts and so on about disruptive technologies that would matter in the future. Stay with the bleeding edge or lose competitive advantage is the mantra. Some remain emerging technologies for decades like a solution searching for a problem to solve, while many remain niche or never get out of the lab to be adopted in mainstream business. I do not believe I understand enough about these esoteric technologies to offer predictions.

 

Having been a CIO or equivalent for more than decade and half across 7 different industries, I think I do understand the CIO travails and tribulations. To me every industry brought new opportunities for learning as well as new paradigms on how existing or new technology can be used. Every slowdown or black swan provided a platform to introspect on successes and lack of some. The next decade and half will bring disruptions unimaginable today. So here is my list for 2012 and beyond; can’t predict that all of these will be applicable to everyone, but statistically over the year you will find some connect.

 

  1. CIOs globally will continue to be challenged on operating budgets. Capital investments will become relatively easier; operating expenses will need to be controlled very tightly.
  2. BITA (Business IT Alignment) will fall off the priority list for many as it will no longer be an issue. Business will acknowledge IT contribution and will work with IT to plan business goals. There will be no separate IT goals.
  3. Attrition will not be the problem, retention will be; with economic and political uncertainty, staff will hang on to their respective jobs. CIOs will have to take some hard decisions.
  4. Clouds will be the first choice for deploying apps for the mobile workforce. The rest will continue to access applications behind the firewall. Hybrid clouds will remain experimental as CIOs figure out that it really does not save money. CIOs will no longer build data centers.
  5. Lead by Consumerization, mobile devices will be out of IT control (for good) and the personal device will find a way to get inside; resisting CIOs will have to provide equivalent additional device, which eventually the Business will turn down. Managing multiple screens will become a pain for the Executive who will challenge IT to make it simpler. The phone as a corporate device will thus be replaced by the tablet over the next 2 years.
  6. CIOs will or be forced to challenge the cost of sustaining big ERP (licenses, support, etc.) as it keeps growing; alternate support vendors will gain market share. Usage will shift out from the office to using marketplace supplied micro-apps thereby challenging the existence of big ERP in 5 years.
  7. Social media fatigue will set in and even marketing teams will be asked to create ROI for expenses and investments on such initiatives. CIOs will need to manage expectations around social analytics while Consultants will thrive with maturity models and make loads of money.
  8. The CIO will continue to be tasked with managing information security with the CISO reporting into him/her. A few cloud bursts (cloud security breaches) will make matters worse before things settle down over 2013 and beyond.
  9. Big Data will remain high on hype with vendors pushing and CIOs scratching their heads if it really gives the benefits promised.
  10. Custom development of solutions will wane with ocean of micro-apps promising to enable business processes as effectively. At the same time appliances will replace generic hardware.
  11. Many CIOs and research analysts will not agree many with the above points.

 

I could have gone on and on but will stop now. I thought 11 is good for now; why 11 and not 10 ? According to Hindu scriptures it is an auspicious number and if you don’t believe in such things, then I would ask why 10 ? I know Moses had something to do with it !

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Carlos Francavilla, Director, BITCompany, Argentina.

 

Business & Technology Advisor, more than 25 years of working with IT to enable business transformations.

 

The Center for CIO Leadership has requested CIO members and other industry experts to answer three questions regarding predictions for the CIO in 2012.  Here are my answers to these three questions.

 

What are your predictions for the top 3 CIO priorities for 2012?

 

  1. Using IT to attract and retain customers.
    Innovation and transformation of existing and new products will be used to satisfy the very fast change in the behavior of customers who are becoming more IT savvy, global, and connected – any time, any place, and with any gadget.
    The CIO will need to combine their knowledge of the entire value chain and processes of the company with the unique awareness of technology's capabilities to push the company beyond merely what is has been and toward what it must become.
    What does this mean?  IT is not aligning with the Business; IT is part of the Business.
    Do you present budget proposals for IT, or budget proposals for growth and innovation and bigger customer engagement enabled by IT?
  2. Technology Diversity.
    The old days of a central IT Organization dictating and imposing which Technology is the right to use is gone forever.
    Consumerism of IT will become a reality and the IT Organization needs to be flexible and support any device that the market is producing, and that the people in the organization will choose to buy and bring to the enterprise.
    This process starts at the Board and includes all the people in the organization.  Today which technologies to use is becoming a business and a personal decision, IT must transform itself to be an “advisor” to people in the organization about the capabilities and the risk of the technology diversity and prepare the IT operations to understand this new reality and support it.
  3. People Skills.
    The central IT unit with a focus in Technology is leaving room for an IT Organization with more people closer to the rest of the company and the CUSTOMERS.
    Do you have the right people for this this job?  Do you have an IT Organization with a lot of certifications in any international standard or framework for IT that are in the market? Would you be proud of the culture of the IT Organization?
    Prepare the IT people to be an “Advisor” and work head to head with all the other departments in the company.  Think for a moment, with which Business Unit do you work more closely, today?  Operations?  Marketing?  Finance?  You guessed it; Operations will be the answer in more than 60% of the IT Departments!
    Your Department needs new skills far beyond the comfort zone of the IT people, prepare for this transition, embrace the challenge and be proud of your people. 

 

How will 2012 be different from 2011 for CIOs and IT?

 

The convergence of the Internet, Web 2.0, and mobile technologies has created a disruptive shift in business.  The era of Business-to-Person (B2P) communications driven by all social (social media, social networks, and social influence) things has emerged as a new model for engagement.

 

In today’s global environment;

 

  • One billion people connected to Internet
  • Four billion have mobile phones with data capable smart phones now providing over 50% of new phone sales
  • More than four hundred million people are sharing billions of pieces of content and experiences each week via online exchanges

 

Social Media have changed the way we do business (customers, partners, prospects, and employees).  We use social media as a platform for discussion of ideas, experiences, and knowledge-exchange. A s we enter the era of business-to-person (B2P) customer relationship systems, those organizations that harness Web 2.0 technologies and platforms to enable B2P communications will be the winners.

 

As a CIO and leader of an IT Department, are you embracing this disruptive shift?  Are you sharing with your colleagues what you know most, technology capabilities and how to use them in this new Social Media World?

 

2012 will differ from 2011 in a way that if we as a CIO couldn’t move the Company fast enough in that direction, others will be doing it.

 

Come on, tweet now with the CMO and other CxO colleagues and start working together to transform the company processes to this Business to Person communication.

 

Your Board and CEO will be glad to approve your investments when you walk together to the corner office and talk about this transformation.

 

What business shifts are you expecting in 2012?

 

Uncertainty will be the word of 2012 and the CEO and Managers will be looking for ways to defend the company against this threat and/or taking advantage of this world in recession.

 

Are you applying IT to enable the business so that you and your colleagues find the answers?

 

Are you helping the company to choose the right strategy?

 

According to Mckinsey, are you thinking about your decisions being better for a company’s competitive position, trying to influence, or even determine, the outcome of crucial and currently uncertain elements of an industry’s structure and its conduct?  Or is a wiser course to scope out defensible positions within an industry’s existing structure and then to move with speed and agility to recognize and capture new opportunities when the market changes?

 

IT can enable companies to change the structure of entire industries and/or gain speed and agility to companies.  Are you ready for these business shifts?

 

Are you enabling that your company play and win in the Champions League of your Industry?