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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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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?

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CIO 2.0

Pim van der Horst, Managing Partner (COO/CIO) Addition Knowledge House (a KAS BANK company)

 

Introduction

Times are changing… As a matter of fact, continuously change has become a reality. How is today’s CIO dealing with change? Is the CIO changing or is his role changing?

In my view, CIOs need to change dramatically. Here is my view on the journey and what is next for the CIO role: the CIO 2.0.

 

CIO 1.0

The “first generation” CIOs had been IT Managers. Then when it became “en vogue” to become a Chief (Chief Executive Officer, Chief Financial Officer, Chief Risk Officer, Chief Procurement Officer , Chief Marketing Officer, Chief Operations Officer, Chief Technology Officer, etc.) there had to be a Chief Information Officer, CIO! So, the IT Manager/Director changed his business card. His job and responsibilities stayed the same; he or she just had a new title.  These early CIOs were what I would call the CIO 1.0.  The CIO 1.0 concentrated on keeping IT running, focusing on internal operations. In this environment, it was challenging for IT leaders to reach beyond the scope of day-to-day IT operations to get involved in other aspects of leading the business. When the CIO 1.0 tried to get connected with the other “chiefs”, he often found it difficult to communicate with anyone besides the CFO and the COO.  And in the case of the CFO and the COO, in many cases one of them was his direct boss. For those CIOs who aspired to connect as peers with the CFO, the COO, and the rest of the “chiefs” to get involved in running the business, many of them struggled. Only a few CIO’s made it into the boardroom…

 

Getting to the boardroom

How could the CIO 1.0 get into the boardroom in this environment? Not by doing the same old job: keep IT running and saying “no” to commercial projects…

One of the challenges for the CIO 1.0 is that when he was successful (i.e. keeping IT running at a high percentage of availability) it was difficult to showcase the potential to help the business, since a well-running IT function is largely invisible. Then as technology continued to rapidly evolve and data management began to explode, the domain of the CIO 1.0 expanded. The CIO 1.0 had more visibility as these changes profoundly impacted the way the business was run. He (or she) was educated in a “hardware” and “infrastructure” world with more influence on the enterprise: his (or her) systems were running on his servers, in his datacenter. Working in this environment gave the CIO more confidence and in this environment he was able to show his (added) value.

 

Change is there, again!

Then things started to change again for the CIO. Decentralized IT. Knowledgeable end-users. Many external IT-services suppliers. And worst of all: the Internet.  These organizational and technology advancements disrupted the carefully managed world of the IT organization. The CIO 1.0 tried to regain control by demanding strict rules regarding the use of IT across the enterprise. This worked… for a short while.  At the same time, he had to build a “bridge” between his IT department and the end user (internal customer): business-IT alignment became a top priority.  CIOs started to try to speak the language of business and connect to the end users, but were at the same time confounded by the challenge that IT’s  “internal customers” were now buying IT services through the Internet and exploiting the opportunities now available on the Internet without informing the CIO.

It is not completely fair to say that the CIO 1.0 didn’t (try to) innovate or didn’t lead  challenging IT transformation projects. Some examples that resonated with the C-suite were:

 

  • Virtualization (of servers and desktops) or “doing the same with less, by centralizing and consolidating IT processing”;
  • Outsourcing;
  • Back-sourcing or cancelling the previous outsourcing.

 

The CIO 1.0 kept IT running, but still his (internal) customers were not satisfied. Instead of promoting and supporting technology innovation, the CIO 1.0 has become one of the major hurdles in IT transformation.

 

CIO 2.0: rise!

As these changes to technology and the marketplace continue and accelerate, I believe a new CIO is needed- one focused on business priorities and enterprise value and transformation. But what are the core competencies to enable this CIO 2.0?

 

Some trends are emerging to answer this question. A renowned head hunter has put the following text on its website:

 

Given the Chief Information Officer’s (CIO) responsibility for the “central nervous system” of the corporation, filling a CIO vacancy is one of the most critical leadership decisions an enterprise can face. While an acceptable CIO might be able to reliably “keep the lights on”, a world-class CIO will be able to leverage information technology to drive process improvements, cost reductions, actionable competitive intelligence and revenue expansion opportunities. Because of the increased demands for talent, skilled CIOs are continually presented with opportunities, and so even companies currently thoroughly satisfied with their current IT leadership need to have a well thought out approach to CIO succession whether through promotion from within the IT function, rotation of a non-IT executive from the business to bring a user’s perspective to the role or through external recruitment.

 

It is clear that CIOs need to play a key role in the strategic direction of a company, and in order to do this effectively they need to understand the business and the elements that drive the business. Communication skills are of the utmost importance. For different organizations in different industries, different communication skills apply.  In particular, the CIO 2.0 needs to be able to communicate effectively across the enterprise, and with all of the other “Chiefs” in the C-suite, in business language and from a business perspective. In fact, some companies have now appointed business people (without much technical back ground) as the CIO… These have discovered that technology skills are less important than the skills to understand how the business works and communicate with the rest of the enterprise.

 

Another indicator of the new business-oriented CIO 2.0 is the set of priorities he or she has. One CIO of a Fortune 50 company that I admired, at one point published his 5 top priorities as:

  • aligning business and IT
  • integrating the enterprise
  • driving long-term revenue growth
  • fueling innovation
  • developing employee skills

 

One thing that is most notable is that there is not much technology in this CIO’s priorities… They focus on connecting with the business, increasing competitive advantage, looking for opportunities. In short, the listed priorities show a common factor: transformation!  As I see it, the CIO 2.0 is a transformer- a transformer of the enterprise to a new level of competitive advantage and business success. And on a final note, I would also say that when this new CIO has finished the transformation he should move on to the next role: the CIO 2.0 is not the right person to keep IT running. The CIO 2.0 drives transformation, which drives the business.

 

CIO 2.0: forget IT, think business!

 

My closing question to Center members: what are your observations on CIO 2.0? Is your role evolving to business transformation leader?