CIO Barometer 2010

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CSC CIO Barometer 2010 RECOVERY OR BREAKDOWN?

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Recovery or breakdown?

Transcript of CIO Barometer 2010

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CSC

CIO Barometer 2010

RECOVERY OR bREakdOwn?

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Opinions expressed by contributors are their own. Reproduction in whole or in part without written permission is strictly prohibited.

© Copyright CSC 2010. All rights reserved.

CSC In TOUCH wITH CURREnT TREndS

Within the framework of its I.D.E.A.S programme (Inspiration, Debate, Executive, Annual Surveys). CSC carries out a number of “barometers” every year to analyse trends and perspectives from key roles within the boardroom (human resources, finance, IT, procurement…) at the European level. Each of these studies, carried out with the assistance of independent survey institutions (IFOP and TNS Sofres), involve the participation of hundreds of managers from the largest businesses and public administrations in Europe. The results of these studies are revealed during high level events, organized in different European cities (Paris, Madrid, Barcelona, Milan, Brussels, Lisbon, etc.), and are also relayed by partners from the media (Les Echos, La Tribune, Expansion, Liaisons Sociales,Il Sole 24 ORE, etc.) and from academia (universities and elite schools).

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TABLE OF CONTENTS

SUMMaRY 10. WHAT ARE THE NEW CHALLENGES FOR CIOS?12. WHICH TECHNOLOGIES ARE NEEDED TO RESPOND TO THESE CHALLENGES?14. HOW SHOULD CIOS EVOLVE TO RESPOND TO THESE CHALLENGES?

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TESTIMOnIalS 34. Alberto Alberini. CIO - Aviva Italia36. Andreas Bereczky. Director of Production - ZDF (German Television)38. Valentín Cabello. CIO - McCANN Worldgroup Spain4o. Ian Campbell. CIO - Transport for London42. Gunter Czisch. Mayor - City of Ulm, Germany44. Fabio De Ferrari. General Manager - Cedacri46. Bernard Gouraud. CIO - Banques Populaires Caisse d’Epargne48. Jürgen Häfner. Permanent Secretary - Rhineland-Palatinate Ministry of the Interior and Sport. Director - Central Agency for IT and Multimedia50. Ralf Kleindiek. CIO and IT Representative - Federal Ministry of Justice, Germany52. Alain Moustard. CIO - Bouygues Telecom54. Piero Persi. Director of Strategic Planning and Business Development - Industries SpA56. Franz Josef Pschierer. Secretary of State for Finance , Bavaria (Germany)58. Jörn Riedel. CIO - City of Hamburg, Germany60. Albert Timmermans. CIO - SPE/Luminus62. Freddy Van Den Wyngaert. CIO - Agfa ICS64. Horst Westerfeld. State Secretary at the Ministry of the Interior and Sport - German state of Hesse

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RESUlTS

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THE CIO baROMETER IS a SURVEY CaRRIEd OUT FOR THE 2nd YEaR bY CSC, In paRTnERSHIp wITH THE lEadIng RESEaRCH InSTITUTE, TnS SOFRES. IT IS baSEd On a QUanTITaTIVE analYSIS OF THE TREndS and pERSpECTIVES FOR IT dEpaRTMEnTS, baSEd On a SURVEY OF IT dIRECTORS FROM a SaMplE OF MaJOR EUROpEan COMpanIES.

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APPROACH AND METHODOLOGY

The 2nd edition of the CIO Barometer was produced in partnership with the TNS Sofres research institute, which surveyed a sample of IT directors in European companies employing more than 1,000 staff. These executives were interviewed on the position, concerns, performance and perspectives of information systems departments.

INTERVIEW METHOD

The questionnaire was administered by TNS Sofres in accordance with the CATI method (Computer Assisted Telephone Interview), from January to March 2010.

TARGET AND SAMPLE

Private and semi-public companies:

• employing at least 1,000 staff,• located in France, Germany, Great Britain, Italy,

Spain, Belgium and Portugal.

80 managers were interviewed (with no detailed criteria in terms of business sector or company size) representing the following target functions:

• IT director / manager.

The sample was eventually adjusted to guarantee representativeness in relation to the population of European companies from targeted business sectors employing at least 1,000 staff.

RECOVERY OR BREAKDOWN?

CIO baROMETER A EUROPEAN SURVEY

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SUMMaRY

1CIO BAROMETER

RECOVERY OR bREakdOwn?

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1. wHaT aRE THE nEw CHallEngES FOR CIOS?

SUMMARYCIO baROMETERTRENDS AND OUTLOOK WITHIN INFORMATION SYSTEMS DEPARTMENTS

MODELS TO BE REINVENTED

The economic crisis is forcing companies to rethink all or part of their business model and to quickly adapt to an environment in which relationships with economic players (customers, investors and the state) have been seriously disrupted. A shortage of cash and the loss of many customers have been the two most concrete effects of this crisis. As economic growth will no longer be driven by credit, new models need to be invented.

In the industrial sector, business models have been thoroughly overhauled, the key drivers being cost savings and reductions in fixed costs. Companies have become aware of the scope of the value chain transformation and of the role of the Internet as a driver of economic growth and competitive differentiation.

Customer demands have reinforced the trend toward market segmentation. Consumers want to contribute to defining the offers proposed to them, as illustrated by comments on social networking sites. This need to participate concerns all generations and forces companies to adapt. The customer relationship is no longer an addition to the product or service. It is becoming a key success factor. Buying habits have changed dramatically, spelling the end of hyper-consumption. New patterns have emerged. To withstand

the pressure on their standard of living, consumers tend to focus on product usage rather than ownership. The ability to enjoy the benefits of a product on demand prevails over the notion of permanent possession. The product itself becomes secondary.

It is difficult to guess what will survive this evolution that has been accelerated by the crisis. The change in consumer behaviour linked with closer attention to price/quality ratios and more reasonable purchasing will have an impact on businesses. The economic crisis heralds a long-term expansion phase, based on the transformation of our consumption and production habits.

GENERATION Y

The balance of power is shifting. One third of the world’s population (2.3 billion people aged 10 to 29) grew up clicking a mouse, with social networks as their frame of reference. The generation of 20-30 year-olds arriving in companies is well-versed in a broad range of technophile activities: blogs, wikis, social networks, RSS flows, etc. Four aspects characterise these aficionados of Web 2.0 technologies: individualism, impatience, interactivity and interconnection.

Generation Y is expressing a growing need for collaboration and smooth information flows as the boundaries between

CUSTOMER DEMANDS HAVE REINFORCED THE TREND TOWARD MARKET SEGMENTATION. CONSUMERS WANT TO CONTRIBUTE TO DEFINING THE OFFERINGS PROPOSED TO THEM, AS ILLUSTRATED BY COMMENTS ON SOCIAL NETWORKING SITES. MEMBERS OF THE SO-CALLED GENERATION Y ARE EXPRESSING A GROWING NEED FOR COLLABORATION AND SMOOTH INFORMATION FLOWS AS THE BOUNDARIES BETWEEN PRIVATE AND PROFESSIONAL LIFE ARE BECOMING BLURRED. ENVIRONMENTAL CONCERNS ARE NO LONGER MERE DECLARATIONS OF INTENT, AND "GREEN IT" IS BECOMING A MAJOR ISSUE FOR COMPANIES.

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private and professional life are becoming blurred. However, these young professionals are in for a shock when they discover, in their company, client-server applications and an intranet devoid of any interactivity. This situation can cause frustration, even resignations, at a moment when the fight for talent is at its peak. Permanently connected to the outside world via smart phones and social networks, generation Y is demanding, creative and can multitask. Its need to be constantly connected reinforces the necessity to integrate new technologies into the company. All the more so as collaborative practices and Web 2.0 technologies offer multiple benefits. They facilitate the sharing of knowledge and enhance responsiveness to customers. They promote innovation and collaboration with external partners. They improve productivity and staff morale. This process of generational renewal encourages companies to adopt new management methods. CIOs adopt collaborative tools from the private sphere for use in the professional sector, while implementing new working methods which create more value. The information system must provide tools adapted to new user habits: social networks and instant messaging services integrated into workstations, collaborative platforms as appealing and user-friendly as private platforms. Many companies thus prefer to resort to internal social networks which allow the sharing of information among employees and protect against external indiscretion. However, this new generation is not a constraint but an opportunity.

ENVIRONMENT

Ecological concerns are no longer mere declarations of intent. With the Grenelle Conference on the environment and the increasingly frequent use of carbon footprint assessments, "Green IT" is becoming a major issue for companies.

First of all, IT accounts for 2% of the world’s CO2 emissions, i.e. the equivalent of civil aviation emissions. Secondly, IT can act as a positive lever to reduce the remaining 98% of emissions (by optimising the supply chain, transport, construction etc.).

Finally, in light of the ecological crisis, environmental issues may soon top the list of purchasing criteria, regardless of the type of product. The world as we know it, made up of producers on one side and consumers on the other, is disappearing. The digital revolution means that other models are being developed. On the internet, for example, there are neither producers nor consumers, only contributors. We are entering the era of the contribution economy, based on a combination of personal and collective investments which creates a different sort of value.

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VIRTUAL OFFICE

The economic and environmental context facilitates the adoption of virtual office infrastructures within companies. Cost reduction, energy saving, individual productivity and security policies result in the migration of a growing number of workstations towards an IT model based on “light” computers as well as centralised applications and processing capability.

CIOs focus on projects linked to operational efficiency, in particular the rationalisation of infrastructure, consolidation operations, the virtualisation of servers and standardisation of IT processes. The virtual office hosts no applications or data; it centralises them on a server. In addition, virtualisation technologies make it possible to operate several applications simultaneously on the same server.

The virtual office generates savings in terms of support and maintenance, reduces equipment and licensing costs and reduces energy consumption. It helps boost productivity and enhance generation Y’s work satisfaction by combining elements of both professional and personal “spheres” on the same workstation.

CLOUD COMPUTING

Companies are being driven to transform global pressure to reduce prices into an incentive to innovate and develop new production technologies. For CIOs, innovation can involve cloud computing to reduce information processing costs, or parallel processing to increase data processing capacity while reducing processing costs.

Cloud computing is a transition towards a new way to collaborate. We are shifting away from the notion of product ownership to that of service consumption. Fixed costs are becoming variable costs. This technological combination enables the rental of IT services on demand and the use of resources in function of one’s needs.

The appeal of cloud computing is first and foremost economic, even if this is not the major benefit. Instead of investing in servers and software which are not used to their full capacity, companies only pay for what they actually use.

The operational benefits are also significant: companies can share their resources and gain extra storage and processing capacity.

2. wHICH TECHnOlOgIES aRE nEEdEd TO RESpOnd TO THESE CHallEngES?

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Above all, cloud computing makes it possible to increase company flexibility in terms of innovation, speed and receptiveness. It enables rapid access to resources, process simplification and the automation of functions. In a global world where universal exchange prevails, access to exponential information is a critical success factor.

Nonetheless, many companies remain hesitant, mostly for security reasons, as the reliability and security of information is one of the main concerns of CIOs. In 2009, worldwide attacks against corporate data almost doubled. However, most computer attacks come from within rather than outside companies.

GREEN IT

There are approximately 45 million servers in operation worldwide. Major data centres alone have doubled their power consumption between 2000 and 2005. After the energy required for IT equipment, which can be optimised via the virtualisation process, the largest share of the energy used is consumed by the air conditioning systems on premises.

Green IT is a powerful lever in terms of communication and team building for the reduction of the negative impact of human activities on the environment, although company directors expect savings first and foremost. There are three major sources of savings: energy consumption, paper consumption and equipment recycling.

CIOs can initiate, under the green IT banner, a number of projects aimed at reducing CO2 emissions and cutting costs, from the virtualisation of servers to the consolidation of data centres, to revising printing guidelines or turning off monitors after a period of inactivity. However, 72% of companies have no strategy whatsoever to reduce the power consumption of their data centres.

In fact, Green IT projects are still few and far between. Major decision makers are more willing to communicate than act on these subjects, and mentalities need to change. What matters most of all is the discipline and best practices to be implemented in companies on a daily basis.

SINCE THE LATE 20TH CENTURY, A NEW REVOLUTION HAS SERIOUSLY DISRUPTED THE ECONOMY, USING INFORMATION TECHNOLOGY AS A TOOL AND SUPPORTED BY THE COLLAPSE OF THREE ESSENTIAL COSTS: THE PRICES OF INFORMATION PROCESSING, STORAGE AND TRANSPORT. THANKS TO THE DRAMATIC REDUCTION IN THESE PRICES, COMPANIES HAVE BEEN ABLE TO TRANSFORM THE WAY IN WHICH THEY ARE ORGANISED (FLATTENING THEIR HIERARCHY), ANALYSE VAST AMOUNTS OF DATA (IN ORDER TO SEGMENT THEIR CUSTOMERS), AND OUTSOURCE ENTIRE ASPECTS OF THEIR ACTIVITY (INCREASING EFFICIENCY, CREATING ADDED VALUE AND CUTTING COSTS). CIOS HAVE MULTIPLE AND VARIED TECHNOLOGICAL OPTIONS AT THEIR DISPOSAL.

ClOUd COMpUTIngCLOUd COMPUTiNg iS A TRANSiTiON TOwARdS A NEw wAY OF COLLABORATiNg. wE ARE SwiTChiNg FROM ThE NOTiON OF PROdUCT OwNERShiP TO ThAT OF SERViCE CONSUMPTiON.

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CIO TRANSFORMATION

In a context where every company has to reinvent its production methods and develop new models for economic growth, the information system represents a crucial element for operational efficiency. CIOs have an important role to play. To do this, they must be capable of comprehending the world as a whole, its crises as well as long-term cycles, and understanding how all stakeholders within the will respond to these cycles.

Far from limiting themselves to the management of IT resources, even though cost reduction is a recurring issue, CIOs are changing their infrastructure in an effort to focus on innovation and value creation. Their priority is to deploy technologies promoting company growth, priority projects being those which support the company’s strategic evolution. IT is thus no longer considered a cost centre but a way to enhance the business activity.

Business leaders are asking CIOs to become more flexible and lead the way in the development of the digital company. CIOs are encouraged to liaise more closely with business divisions to support their transformation processes. They must have in-depth knowledge of the company’s businesses while demonstrating solid IT expertise. Their added value is their ability to understand user expectations and recommend new

types of usage that will provide the business with a competitive edge in terms of decision making, customer relationships and supply chain management. CIOs are switching from a technical to a management role, as technological knowledge is no longer the primary skill expected of them.

INNOVATION

More than ever before, innovation is considered a strategic element of economic recovery. Nearly 90% of business leaders believe that innovation is at least as important as cost reduction in their economic processes. The economic crisis makes innovation an even greater necessity for long-term business sustainability. Innovation leaders are not just striving to protect themselves against the crisis; they are trying to make the most of it to overtake their competitors. To make innovation a reality, CIOs must be both visionary and pragmatic.

However, there is no miracle solution in terms of innovation. The efficiency of innovation is enhanced by the implementation of partnership, an appropriate organisation and decision making rules to govern the interaction of people with creative and rational competences. The natural tendency to oppose differences is outdated. Diversity of skills, training, ages, genders or ethnicities is an asset.

3. HOw SHOUld CIOS EVOlVE TO RESpOnd TO THESE CHallEngES?

COMPANY DIRECTORS ARE ASKING CIOS TO BECOME MORE FLEXIBLE AND LEAD THE WAY IN THE DEVELOPMENT OF THE DIGITAL COMPANY. CIOS ARE ECOURAGED TO LIAISE MORE WITH BUSINESS DIVISIONS TO SUPPORT THEIR TRANSFORMATION PROCESSES. THEY MUST HAVE IN-DEPTH KNOWLEDGE OF THE COMPANY’S BUSINESSES WHILE DEMONSTRATING SOLID IT EXPERTISE.

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BEFORE 2008…

CIOs experienced a long period marked by cost reduction and the improvement of business processes. IS services were perceived by business leaders as a cost centre whose added value was difficult to assess. IT was regarded as a function that supported operational improvement cost reduction. The role of the CIO focused on the evolution of infrastructure and organisation of IT architecture, which did not necessarily create value for the company. This role subsequently switched from a technological and IT dimension to a more strategic dimension.

IN 2009…

CIOs have had to face new challenges associated with the financial and economic crisis, responding to these challenges by upgrading information systems, making them more flexible, adaptable and upgradeable. CIOs have deployed the resources necessary to provide increasingly efficient services at the best possible price. They have adapted and are increasingly being perceived as innovation and business process facilitators, creating greater value for the company through operational excellence. CIOs have become closer to the line of business by becoming progressively more deeply involved in its evolution and the definition of the corporate strategy, thereby affirming their leadership role in the area of innovation.

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2RESUlTS

CIO BAROMETER

RECOVERY OR bREakdOwn?

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INTERVIEWS BY COUNTRY

PERMANENT STAFF

BUSINESS SECTOR

SAMPLE STRUCTURE

Belgique

Portugal

Espagne

Allemagne

UK

Italie

France 21 %

21 %

16 %

16 %

20%

16 %

5 %

5 %

10 000 salariés et plus

De 6 000 à 9 999 salariés

De 3 000 à 5 999 salariés

De 1 000 à 2 999 salariés 62 %

23 %

7 %

8 %

3 %

60 %

17 %

10 %

10 %Services

Industrie

Commerce

Transport

BTP

France

Italy

UK

Germany

Spain

Portugal

Belgium

1,000 to 2,999

3,000 to 5,999

6,000 to 9,999

10,000 and more

Services

Industry

Trade

Transport

Construction & Public works

60 %

17 %

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NUMBER OF IT STAFF

POSITION OF THE IT DEPARTMENT WITHIN THE COMPANY

PARTICIPATION IN THE COMPANY’S DECISION MAKING BODIES

CIO BAROMETER 2010

DESCRIPTION OF THE IT DEPARTMENT

The harmonisation of the information system with business functions is effective in companies

Business requirements have resulted in the dynamic management of applications and software, and the contribution of the CIO function is based on improved management of business processes. The key factors of this evolution relate to the very identity of IT departments, which has changed drastically. The purely technological aspect is becoming less significant, leaving room for innovation leadership and a strong involvement in the strategy, which creates greater value for the company.

An undeniable strategic function

The CIO’s involvement in the company’s decision making bodies and the fact that this function reports directly to top management shows that the new role of the CIO is highly strategic.

Plus de 500

De 100 à 500

De 50 à 100

De 20 à 50

Moins de 20 50 %

21 %

8 %

14 %

11 %

2 %

61 %

17 %

13 %

7 %

Direction Générale

Direction Financière

Autre Direction

Direction Métier

NSP

77 %

OUI

23 %

NON

20 to 50

Less than 20

50 to 100

100 to 500

More than 500

General management

Finance

Other department

Operations

No response

NO

17 %61 % 77 %

YES

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NOTEWORTHY RECENT DEVELOPMENTS FOR IT DEPARTMENTS

EVOLUTION OF THE CONTRIBUTION OF THE IT DEPARTMENT WITHIN THE COMPANY

NSP

Passage d'un centre de coût versun centre de création de valeur

Externalisation

Réduction des budgets etdes effectifs de la DSI

Implication dans la stratégiede l'entreprise

Accélération de l'innovation

Implication dans les changementsou évolutions des métiers

64 %

62 %

58 %

47 %

25 %

30 %

3 %

En augmentation par rapport à 2009

En diminuation par rapport à 2009

NSP

Dynamisation et valorisationdes patrimoines applicaifs

Leadership sur l'innovation et créationde valeurpar les nouvelles technologies

Levier d'excellence opérationnelle

Gestion de processus métier 66 %

62 %

61 %

59 %

53 %

5 % En augmentation par rapport à 2009

En diminuation par rapport à 2009

Involvement in business change and evolution

Business process management

Driver of operational excellence

Innovation leadership and value creation via new technologies

Enhancement and optimal use of applications and software

Innovation enhancement

Involvement in the company’s strategy

Reduction in IT budget and staff

Outsourcing

Switch from a cost centre to a value creation centre

No Response

No Response

Up on 2009 Down on 2009

Up on 2009 Down on 2009

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SIGNIFICANT CHALLENGES FOR THE YEARS AHEAD

CHALLENGES AND PRIORITIES FOR THE IT DEPARTMENT

The extended enterprise is having a profound effect on traditional organisation structures, with an increasing level of complexity that fundamentally changes working methods.

Increased cooperation between the company and its environment, the need to share information and the need to develop collaborative tools raises numerous security issues.

The priority of the IT department will be to integrate customers and the various users involved into the information system, while allowing them uninterrupted access to company data, regardless of their location and in a totally secure manner.

Attracting customers and increasing their loyalty, and reinforcing relationships with users: IT departments need to focus on these elements and acquire an understanding of requirements and potential markets that will enable them to seize business opportunities.

Improving relationships with customers and users of the IS is a major issue, and a key success factor in a business-oriented strategy. The IT department must adapt in order to find new approaches.

New technological trends should enhance the company’s competitiveness by enabling it to seize more opportunities and create greater value through innovation.

Optimiser les processus IT et développerl'usage des bonnes pratiques

Rationaliser les patrimoinesapplicatifs et infrastructures

Optimiser le pilotage financieret opérationnel de la DSI

Améliorer la gestion de la relationavec les clients et utilisateurs

Mettre en place la sécuritéet le contrôle interne

88 %

78 %

77 %

74 %

70 %

En augmentation par rapport à 2009

En diminuation par rapport à 2009

CIO BAROMETER 2010

Implement security and internal control

Improve the management of customer and user relationships

Optimise financial and operational steering of the IT department

Rationalise applications, software and infrastructure

Optimise IT processes and increase the use of best practices

Up on 2009 Down on 2009

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COMPANY MATURITY IN TERMS OF SOFTWARE AND APPLICATION MANAGEMENT

VISIBILITY OF THE QUALITY OF STRATEGIC APPLICATIONS

58 %

29 %

13 %

Maturitémoyenne

Bonnematurité

Peu mature

50 %

44 %

6 %

Bon

Moyen

Insuffisant

Maîtriser l'externalisation des services

Devenir Green

Identifier et développerdes compétences clés

Affirmer son leadership sur l'innovationau moyen de nouvelles technologies

Communiquer son action vers les méiers

Mettre en place des solutionsmétier et/ou ERP 66%

63 %

42 %

77 %

58 %

50 %

En diminuation par rapport à 2009

Put in place business and/or ERP solutions

Communicate action taken to the business

Assert leadership in innovation by means of new technologies

Identify and develop key competences

Become green

Low maturity

Insufficient

Good

Average

Average maturity

High maturity

Control the outsourcing of services

Down on 2009

58 %

50 %

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MAIN OBSTACLES TO INNOVATION LEADERSHIP ENCOUNTERED BY THE IT DEPARTMENT

PRIORITY INVESTMENT AREAS FOR THE NEXT 2-3 YEARS

NSP

Le modèle opérationnel de l'entrepriseet la gouvernance ne sont ppas adaptés

L'entreprise ne perçoit pas l'ITcomme un vecteur pour l'innovation

Difficulté à démontrer l'intérêtdes technologies pour les métiers

Trop de temps et de ressources mobiliséspour le traitement des incidents et des urgences

Innovation IT perçue comme difficilementmaitrisable et aux résultats incertains

Contrainte budgétaire etabsence de poste budgétaire dédié

Focolisation sur la gestion des demandeset la livraison des solutions cohérentes

47 %

26%

56 %

27 %

26 %

5 %

40 %

34 %

En augmentation par rapport à 2009

En diminuation par rapport à 2009

Mise en place de solutions métier et/ou ERP

Architectures orientées service

Orchestration et pilotage des processus

Modernisation du SI

Intégration des applications d'entreprise

Consolidation et virtualisationdes infrastructures

Sécurité informatique

75 %

79 %

71 %

62 %

63 %

63 %

77 %

En augmentation par rapport à 2009

En diminuation par rapport à 2009

Cloud computing

Développement de l'open source

Web 2,0

Gestion des référentiels

Applications étendues en mobilité

Applications de Business Intelligence

Convergence des applicationsWeb avec les autres utilisations réseaux

60 %

47 %

46 %

34 %

33 %

24 %

54 %

CIO BAROMETER 2010

Focus on the processing of requests and delivery of coherent solutions

Budget constraints and absence of dedicated budget item

IT innovation perceived as difficult to control with uncertain results

Too much time and too many resources mobilised for the treatment of incidents and emergencies

The relevance of technologies for the business is difficult to prove

The company does not regard IT as a vector for innovation

The company’s operational model and governance are not appropriate

No response Up on 2009 Down on 2009

Up on 2009 Down on 2009

IT security

Infrastructure consolidation and virtualisation

IS modernisation

Coordination and steering of processes

Service oriented architectures

Integration of corporate applications

Implementation of business and/or ERP solutions

Business intelligence applications

Extended mobility applications

Database management

Web 2.0

Open source development

Cloud computing

Convergence of web applications with other types of network usage

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OPERATIONAL EXCELLENCE

The lack of internal competences is a major obstacle for the operational performance of the IT department.

The simplification of information systems through the use of out-of-the-box solutions shows that IT departments still have a long way to go in terms of improving working methods.

Compared to the previous year, the urgency of actions remains unchanged.

Efforts to improve the IT department’s relationship with the line of business remain focused on communication. This is an ongoing struggle for IT departments in which they are not making any major progress.

PRIORITY OBJECTIVES TO BE ACHIEVED TO IMPROVE PERFORMANCE

ACTIONS UNDERTAKEN TO IMPROVE THE RELATIONSHIP BETWEEN THE IT DEPARTMENT AND THE BUSINESS

Externalisation des fonctions,applications, infrastructures

Optimisation de la stratégie de sourcing

Gestion et appropriation du patrimoineapplicatif par les métiers

Développement de partenariatsavec les fournisseurs clés

Industrialisation des processus

Pilotage du portefeuille desdemandes et des projets

Mise en place de solutions degestion de la connaissance et de l’information

Mise en place des solutions métiers et/ou ERP

Définition et gouvernance du plan d'efficacité IT

Accroissement du niveau de compétence interne 75 %

68 %

62 %

52 %

53 %

49 %

48 %

35 %

35 %

68 %

En augmentation par rapport à 2009

En diminuation par rapport à 2009

Participation de la DSI aux cycles de décision métier(priorisation, constitutiondes portefeuilles,

définition des versions)

Création de postes et deprocessus d'interface avec les métiers

Amélioration de la visibilité des services offerts,de leurperformance et de leurs coûts associés

Amélioration de la communicationentre la DSI et les métiers

66 %

56 %

46 %

87 %

Increase in internal competence level

Definition and governance of the IT efficiency plan

Implementation of business and/or ERP solutions

Implementation of knowledge and information management solutions

Management of the portfolio of requests and projects

Standardisation of processes

Development of partnerships with key suppliers

Management and adoption of applications and software by the business

Optimisation of the sourcing strategy

Outsourcing of functions, applications and infrastructure

Improvements in communication between the IT department and the business

Improvement in the visibility of the services provided, their performance and associated costs

Creation of positions and processes to interface with the business

Participation of the IT department in business decision making cycles (prioritisation,

composition of portfolios, definition of versions)

Up on 2009 Down on 2009

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NSP

Contractualisation dela relation avec les métiers

Gestion et évaluation partagéesde patrimoine applicatif avec les métiers

Déveioppement de la double compétence,métier et technique, des collaborateurs SI

Création de binômes DSI - Métier

42 %

39 %

38 %

2 %

45 %

CIO BAROMETER 2010

Creation of joint IT – business teams

Development of dual business/technical competences for IT staff

Shared management and evaluation of applications and software with the business

Setting up service level agreements to define the relationship with the business

No response

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CIOS AND THE BUDGET

2010 seems to be a year of recovery in terms of investment.

Following last year’s significant drop in investments, CIOs are more optimistic for 2010.

65% of those interviewed do not plan to reduce their investments and 27% plan to increase them. Despite this increase, the total budget of IT departments in 2010 should be at the same level as 2005.

Outsourcing does not seem to be the norm when it comes to cost optimisation: the focus is primarily on improving productivity and overall efficiency, notably thanks to cost reduction and infrastructure rationalisation.

IT BUDGET

INVESTMENT TRENDS FOR 2010

Moins de 10 millions d'euros

De 10 à 50 millions d'euros

NSP

De 50 à 100 millions d'euros

Plus de 500 millions d'euros

De 100 à 300 millions d'euros

De 300 à 500 millions d'euros 2 %

2 %

5 %

6 %

63 %

7 %

15 %

NSPEn augmentationEn diminutionStables

38 %

34 %

27 %

1 %

€300 million to €500 million

€100 million to €300 million

Over €500 million

€50 million to €100 million

Do not know

€10 million to €50 million

Less than €10 million

Stable Down Up No response

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27

COSTLIEST ITEMS IN THE OVERALL BUDGET IN 2009

PRIORITIES FOR THE OPTIMISATION OF IT BUDGET COSTS FOR 2010

EVOLUTION OF RATIO OF THE PROJECT-RELATED BUDGET TO THE MAINTENANCE AND OPERATION BUDGET

Les prestations externalisées

Les coûts de déploiement et de support

Les coûts de production informatique

La maintenance corrective et réglementaire

Les licences

Les réseaux et Telco

La maintenance évolutive

Les projets 53 %

49 %

49 %

34 %

22 %

22 %

21 %

21 %

Mise en place d'un modèle de gestion ABC

Industrialisation de l'ingénierie du développement

Augmentation du recours à l'externalisation

Externalisation

Gestion du portefeuille des demandes et des projets

Industrialisation de la production informatiqueet rationalisation des infrastructures

Diminution des coûts etmaintenance des applications

Amélioration de la productivitéet de l'efficacité

74 %

66 %

62 %

57 %

27 %

25 %

23 %

17 %

41 %

29 %

30 % Stable

En augmentation

En diminution

CIO BAROMETER 2010

Manage the portfolio of requests and projects

Outsourcing

Increase the use of outsourcing

Standardise development engineering

Implement an ABC management model

Projects

Upgrade maintenance

Networks and telecom

Licences

Corrective and regulatory maintenance

IT production costs

Deployment and support costs

Outsourced services

Improve productivity and efficiency

Reduce the cost and maintenance of applications

Standardise IT production and rationalise infrastructure

Down

Stable

Up

41 %

Page 28: CIO Barometer 2010

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OUTSOURCING, GOVERNANCE AND SUSTAINABLE DEVELOPMENT

The CIO must adopt a business-oriented language to stimulate productivity improvement.

The information system must be governed such that it is aligned with the company’s strategic objectives, and the CIO must focus on broader managerial skills to improve understanding of business issues.

The explicit use of information must ensure the growth of the role of the CIO within the company, and thus make it possible to seize business opportunities. Armed with their comprehension and overall vision of the organisation’s strategy, CIOs must use the technologies available to achieve the performance and profitability objectives set by top management.

The international dimension must be taken into account when developing the IT strategy to ensure the information system is upgradeable and adaptable. In 2010, it is expected that CIOs be both visionary and pragmatic.

CURRENT OR EXPECTED SHARE OF IT ACTIVITIES OUTSOURCED

VISIBILITY OF OUTSOURCED ACTIVITIES COMPARED TO INTERNAL ACTIVITIES

Moins de 25 %Entre 25 et 50 %Plus de 50 %

16 %

22 %

60 %

SupérieurEquivalentMoins bon

31 %

27 %

40 %

More than 50%

Lesser

25% to 50%

Equal

Less than 25%

Greater

Page 29: CIO Barometer 2010

29

IMPACT OF OUTSOURCED ACTIVITIES ON THE FOLLOWING DOMAINS:

PRIORITY OBJECTIVES OF THE BUSINESS IN TERMS OF IT GOVERNANCE

La réductiondes coûts

L'amélioration de laqualité des services

Le développementde l'innovation

L'efficacité projet

52 %

30 %

15 %20 %

28 %

49 %

35 %

40 %

23 %

31 %

33 %

32 %

Positif Neutre Négatif

Au

gm

enta

tio

n p

ar r

app

ort

à 2

00

9

Dim

sin

uti

on

par

rap

po

rt à

20

09

Mesure des coûts et comparaison interne et externe

Orientation sur les choix des architecturescible et des solutions à mettre en place

Gestion du portefeuille des projets

Gestion du patrimoine applicatif

Maîtrise des risque

Alignement de l'organisation informatique auxmeilleures pratiques et à l'amélioration continue

Agilité vis-à-vis des besoins des métiers

Qualité des services fournis auxutilisateurs à coût maîtrisé

Alignement du SI à la stratégie de l'entreprise 93 %

84 %

78 %

74 %

73 %

63 %

60 %

57 %

53 %

CIO BAROMETER 2010

Project efficiency

Incr

ease

co

mp

ared

to

20

09

Positive Neutral Negative

Dec

reas

e co

mp

ared

to

20

09

Growth of innovation

Improved quality of service

Cost reduction

IT alignment with company strategy

Quality of the services provided to users at a controlled cost

Flexibility vis-à-vis business requirements

IT organisation aligned with best practices and continuous improvement

Risk management

Management of applications and software

Management of project portfolio

Focus on the choice of target architecture and solutions required

Cost assessment and internal and external benchmarking

52 %

30 %

15 %20 %

35 % 32 %

28 %

23 %33 %

49 %40 %

31 %

Page 30: CIO Barometer 2010

30

NSP

Mise en œuvre des bâtiments verts

Bilan carbone et actions associées

Evaluation des projets par rapportau développement durable

Développement des bonnespratiques vertueuses

42 %

30 %

23 %

22 %

7 %

En diminuation par rapport à 2009Down on 2009

NSP

Mise en œuvre des bâtiments verts

Bilan carbone et actions associées

Evaluation des projets par rapportau développement durable

Développement des bonnespratiques vertueuses

42 %

30 %

23 %

22 %

7 %

En diminuation par rapport à 2009

ACTIONS PLANNED TO MAKE THE IT DEPARTMENT MORE ENVIRONMENTALLY FRIENDLY

Choix des fournisseurs respectueux de l'environnement

Remplacement des PC et des composantsdes SIdans le cadre de programmes de recyclage

Réduction de la consommation d'énergie

Réduction des impressions 74 %

68 %

55 %

43 %

Reduction in printing

Reduction in energy consumption

Replacement of PCs and IT equipment as in the context of recycling programmes

Development of responsible best practices

Project evaluation in terms of sustainable development

Carbon footprint assessment and related actions

Implementation of green buildings

No response

Selection of environmentally friendly suppliers

42 %

30 %

23 %

22 %

7 %

Page 31: CIO Barometer 2010

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CIO BAROMETER 2010

Page 32: CIO Barometer 2010

32

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3TESTIMOnIalS

CIO BAROMETER

RECOVERY OR bREakdOwn?

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34

"wE MUST bECOME EVER MORE agIlE and SwIFT."

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albERTO albERInICIOAVIVA ITALIA

TESTIMONIALS

HOW HAS YOUR COMPANY REACTED TO THE CRISIS? HAVE YOU DECIDED TO CONCENTRATE ON THE RENEWAL OF OPERATING MODELS AND STRATEGIES?

The company is part of a group that is undertaking an important transformation. Last year we focused on our vision: “Within 3-5 years Aviva Europe will become the most admired, the most sought after, the most trusted and financially successful company in our industry and region. We will be the unquestioned leader in every area in which we decide to compete”. We also concentrated on the realisation of what we call the Quantum Leap: seven programmes and twenty-eight pan-European projects. In this context we have bet heavily on the renewal of operating models and the strategies to realise our motto ‘One Aviva, twice the value’, which refers to the process of consolidating a series of independent businesses into only a single Aviva, and doubling our earnings per share by 2012. In Italy in particular, towards the end of the year we began a profound revision of the organisation and of the processes related to damage claims, aware that in the future the major source of competition in the insurance world will be the capacity to “pay fair damages rapidly”. A client who receives compensation within only a few days of an incident is a faithful customer, who advertises for the company and is prepared to pay for the service. In terms of impact on our IT applications the work has so far been demanding, but we have made good progress… We are on the right track.

WHAT WERE THE PRINCIPAL CHALLENGES THAT YOU HAD TO FACE AS CIO WHEN THE CRISIS HIT THE WORLD ECONOMY AND IN ITALY IN PARTICULAR? WHAT WAS YOUR PERSONAL EXPERIENCE LAST YEAR?

Last year was decidedly exacting, but also inspirational. I immediately realised that in order to innovate and realise the strategic pan-European projects, it was first of all fundamental to foster a new culture with the team I had met in Aviva. We have concentrated our energies on a profound project of change management within the IT department; we have spent time and effort on the

development of modern and efficient IT organisational models, training of personnel, stimulating work by objectives and projects, planning… It is only possible to attain ambitious goals, which go far beyond the normal day-to-day activities to which the structure is accustomed, with qualified and highly motivated staff. The management of talent was and will continue to be a key issue.

NOW THAT THE WORST SEEMS TO BE OVER, WHICH ACTIVITIES ARE NOW AN INTEGRAL PART OF THE DAILY OPERATIONS OF YOUR FUNCTION?

Certainly the habit of thinking globally and acting locally.

AND WHICH WOULD YOU DESCRIBE AS TRULY INNOVATIVE AND DRIVERS OF RADICAL CHANGE?

The awareness that it is necessary to change, knowing how to identify those minor changes that produce major transformations, and being aware that it is an ongoing process that must become an integral part of everyone’s mentality. We must become ever more agile and swift.

WHAT ARE THE NEW TRENDS AND PROSPECTS FOR THE ROLE OF THE CIO, AND HOW DOES THE IMPORTANCE OF THE CIO INFLUENCE THE ORGANISATION, GOVERNANCE AND DECISION-MAKING PROCESSES IN YOUR COMPANY?

In the insurance world the role of IT and organisation are critical in determining the strategic choices of the business. Insurance products are by definition highly computerised products.

WHAT ARE YOUR PRIORITIES FOR THIS YEAR?

The priorities for this year are to accelerate the transformation and implementation in Italy of Quantum Leap in order to contribute effectively to the realisation of our vision. And this without forgetting two important points: “simple is good” and “proceed in order to innovate”.

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"OUR gREaTEST CHallEngE IS dIgITalISaTIOn."

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andREaS bERECzkY DIRECTOR OF PRODUCTION ZDF - GERMAN TELEVISION

TESTIMONIALS

IS ZDF’S IT BUDGET SUFFERING FROM THE ECONOMIC CRISIS?

We have noticed hardly any negative impact thus far. As we all know, ZDF is largely financed by licence fees and if the unemployment rate does not increase very sharply – job-seekers in particular do not have to pay licence fees – then our budget remains stable. Our IT budget remained largely unchanged in 2010. We are thus doing better than comparable media companies.

WILL THIS SITUATION CHANGE IN THE MEDIUM TERM?

We are in a very uncertain situation at the moment, as we are going to undergo a transition to a new fee model whose effects we cannot yet assess. It is thus difficult to make accurate predictions regarding the budget situation in the coming years.

HOW ARE YOU DEALING WITH THIS UNCERTAINTY?

We are making efforts to control our costs, to be more efficient in production and to implement innovative production processes. We are investing in areas in which we can realise direct efficiency improvements such as production, technology and the editorial environment. Our goal is to complete several more efficiency projects this year. We are investing, for example, in a new integrated programme planning system, and we are trying to outsource commodity IT activities such as support for networks and mainframe computers. However, we will continue to perform all IT tasks specific to ZDF such as archiving, post-production management, content management systems and other similar activities in-house in future.

WHAT IT PROJECTS ARE YOU PLANNING FOR THE COMING YEAR?

We are going to extend our online and content management systems. Although they currently function perfectly, we need to upgrade them in order to respond to the new requirements from editors. In addition, electronic media are developing so rapidly that we need to regularly update our systems in that area.

WHAT CHALLENGES DO YOU SEE AHEAD FOR ZDF’S IT DEPARTMENT?

Our greatest challenge is digitalising the media landscape. The end of the analogue era is coming, and we are now building everything around digital structures – from production and broadcasting to programme distribution and signal reception. The images and signals we receive are increasingly made available in digital format via IP networks. The trend towards less video and more IP transmission is rather clear to us. That means that we must adapt all of our station’s central components to this digital platform. We want to completely modernise the station’s central components by the end of 2012, and of course integrate the new high definition format. This implies a complete transformation of the station’s infrastructure and will involve operations conducted by all employees, in both editing and production.

WILL DIGITALISATION ALSO CHANGE THE ROLE OF THE CIO?

We already abandoned separate ‘traditional’ IT and television technology departments seven years ago by integrating the two into a single unit. Therefore I don’t expect any changes to the role of the station’s CIO in the foreseeable future. However, the CIO must constantly improve his understanding of broadcast technology in order to master his job.

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"I THInk THaT OUTSOURCIng CERTaIn IT SERVICES InTO pUblIC OR pRIVaTE ClOUdS wIll bECOME STandaRd pRaCTICE OVER THE nExT FEw YEaRS, wITH EVEn USER dESkTOpS bEIng VIRTUalISEd."

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ValEnTín CabEllOCIOMCCANN WORLDGROUP SPAIN

TESTIMONIALS

IN GENERAL TERMS, HOW DID YOUR COMPANY REACT AND WHAT MEASURES DID IT TAKE TO FACE THE ECONOMIC CRISIS?

Similar to what happened in the majority of businesses, including our clients, the uncertainty paralysed investment decisions in all areas of the company, including IT, and long-term strategic decisions gave way to short-term decisions, as nobody really knew what the immediate future held.

The IT budget strategy was primarily based on drastically cutting investment (capital expenditure, or capex) and converting it into operating expenditure (opex). For example, by trying to lengthen the service life of computers by increasing RAM, using server maintenance services instead of renewing them and changing the company’s printing system and culture.

IN YOUR ROLE AS CIO, WHAT PROVED TO BE THE MAIN CHALLENGES WHEN THE CRISIS BROKE OUT?

The company’s main aim was to cut costs. Consequently, the IT department’s objective changed and basically we decided to maintain service quality with lesser resources available, discarding a large number of projects and making timescales on others as flexible as possible. One of the cost cutting objectives was to reduce printing costs, which were growing uncontrollably every year.

The printing system that we had was based on having a large number of departmental printers that were replaced once they were fully depreciated, and which had become obsolete. In the context of our cost cutting initiatives, instead of replacing the existing printers with new ones, we got rid of all of them and signed up for a “pay as you go” printing service provided by a leading market player, with the aim of reducing the TCO (toner, paper, repair, technical support costs, etc.) and obtaining a range of services that we did not previously have (multifunctional devices, better quality creative devices, better accounting control of printing costs, authentication before printing). At the same time we reduced the number of printers in the company and the number of documents printed by users each year.

The main challenge was efficiently managing the change. Changing the corporate culture is always complicated and the users’ printing culture had been based on a “copies are on the house” feeling. Users frequently printed documents that were not even picked up. The feeling of being

monitored was not popular and we had to introduce the change gently but firmly. Another major challenge has been managing users’ obsolete IT equipment, as a result of the investment constraints. We devoted a lot of time in the past year to calming and helping users experiencing problems caused by the age of their computers, trying to perform near miracles to convert their frustration into satisfaction.

WHAT ARE THE NEW TRENDS IN YOUR ROLE?

The increase in internet bandwidth, the reduction of communication costs and the development of virtualisation systems has meant that today everyone is saying that cloud computing will be the solution to our IT problems. A common sense approach will be needed when assessing which services can be outsourced and which cannot. We cannot change everything overnight, and of course it would make sense to wait until past investments in company data centres have been fully depreciated.

In IPG we have been working with private clouds for years for email services and some applications such as SAP. I think that outsourcing certain IT services into public or private clouds will become standard practice over the next few years with even user desktops being virtualised. The technology exists and it works. Ultimately, the aim once again is to cut capex budgets and the spikes that disturb finance directors so much, and opt instead for pay as you go services (opex). These are much more predictable and flexible in terms of one-off needs and high availability, meaning that we can finally put behind us a series of problems common to all of us: onerous backup operations, air-conditioning requirements and power supply issues.

From a service standpoint, who wouldn’t be interested in having access to their folders (personal or otherwise) and corporate applications from any computer? Everything has its pros and cons. We IT managers will have to place our trust in these types of companies and services. We must overcome our fear of a lack of control over this type of outsourced service, by developing suitable SLAs with the providers. This will enable IT departments to focus more efficiently on aligning IT strategy with corporate strategy, and providing added value solutions that will help differentiate us the competition.

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"MORE paRTnERSHIpS and SERVICES TO ExplOIT OUR STREngTHS."

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Ian CaMpbEll CIOTRANSPORT FOR LONDON

TESTIMONIALS

HOW HAS YOUR COMPANY REACTED TO THE CRISIS? DID YOU REVAMP YOUR BUSINESS MODEL AND YOUR STRATEGIES?

In transport, there are no short-term strategies, we are currently working to the Mayor’s Transport Strategy which sets out his transport vision for London and details how TfL and our partners will deliver the plan over the next 20 years. We are already delivering efficiencies as agreed as part of our long-term planning and expect to continue to do so.

A drop in passenger numbers of around 6% has hit our revenues but things are starting to pick up now. Ultimately, we are here to provide a service to London which must continue, uninterrupted, regardless of the economic climate.

WHAT WERE YOUR MAJOR CHALLENGES AS A CIO WHEN THE CRISIS HIT? HOW DID YOU PERSONALLY LIVE THIS LAST YEAR?

The question for me was, did I have a good operating model in place and could it be scaled up or down fast. Our budgetary priorities have withstood scrutiny even as money has been tight. As a local government body, answerable to the Mayor, our priority is to keep London moving even if this means taking a more measured approach to innovation. So, new customer information displays, for instance, will roll out slower. I have looked to keep the trust and motivation levels of my team high. This is a good time to invest in training and developing employees so they well prepared when business picks up.

AFTER THE CRISIS, WHAT ARE YOU DOING NOW THAT YOU WOULD DESCRIBE AS "BUSINESS AS USUAL"?

We are running a large number of shared services, using providers such as CSC, scaled to deal with the volumes coming in. The Olympic Games, to be held in London in 2012, requires us to improve our digital services, especially for visitors using 3G mobile technologies, looking for route and location information by phone.

AFTER THE CRISIS, WHAT ARE YOU DOING NOW THAT YOU WOULD DESCRIBE AS SOMETHING REALLY NEW, SOMETHING DISRUPTIVE?

We are considering a project to provide wireless internet access across London – its schools, community centres and libraries. This project is a paradigm shift for us, and uses infrastructure and buildings that we own. We are currently looking at how we can operate this in the best interests of Londoners.

WHAT ARE THE NEW TRENDS IN THE ROLE OF CIO... IN TERMS OF ORGANISATION, GOVERNANCE, LEADERSHIP, AND PROCESSES?

The environment has been changed by the crisis, however we are increasingly commercial in our outlook, as well as taking into account that fewer and stronger leaders are better placed to guide the company. The approach is more innovative, as we reach out and see what the community can do with us. For example, working through the GLA’s London datastore, we’ll be releasing data which can be used by third parties eg; for an iPhone application to help commuters. More partnerships and services like this will exploit our strengths.

WHAT WILL BE YOUR PRIORITIES THIS YEAR?

Everything for the Olympics has to be ready 18 months ahead, to give us time to iron out glitches. We’ll be playing our part in delivering the improvements necessary for 2012 including the major upgrades underway on the Tube. We’re also working with our GLA partners to provide better value for money to Londoners through shared services. This is an area where IM really takes centre-stage. However, as always, our primary objective is to ensure we continue to keep London moving.

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"IT pROJECTS MUST alSO bE gEaREd TOwaRd CITIzEnS."

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gUnTER CzISCHMAYORCITY OF ULM, GERMANY

TESTIMONIALS

WHAT ARE THE CHALLENGES FACING IT?

Our guiding principle “thinking of, and acting on behalf of, the people” also includes IT. We don’t regard it as an isolated technology, but rather as one of the elements used to organise solutions for citizens. For instance, we have set up so-called citizens’ offices to deal with a few key issues, such as Construction and Family. One of these offices, the Neue Mitte service centre, was opened a few weeks ago. It is entirely tailored to matters related to moving house. For instance, a customer can obtain documents to notify of a change of address here, can buy “Müllmarke” (small iron plates to be attached to rubbish bins indicating that they have been registered with the local authority), apply for electricity, gas and water connections, and attend to everything else which pertains to the matter of moving house. For this to work we had to break down the previous IT silos and set up new processes. The public offices for Construction and Family have both already been operating as part of a pilot programme for two years now.

The second big challenge for IT is to find standardised, simple and understandable solutions that are easy for employees and citizens to use. This is important because in the future, we want to be able to provide public administration services online too.

And of course we have to get by in a financial and economic crisis with the budgets that are available. An IT solution created for a particular office shouldn’t mean that the administration will require more subsidies from public finances than previously. Quite the opposite, IT solutions should bring a return on investment within three years at the most. This rule is only broken if an additional service yields above-average benefits for citizens. IT projects must also be geared toward citizens.

WHAT WILL THE IMPACT BE OF BUDGETARY CONSTRAINTS IN THE NEXT FEW YEARS?

The city of Ulm is financially sound. We have even scaled back levels of debt in the last few years to EUR 117 million (about 40 percent). We are thus able to take action. That means we are also able to tackle strategic matters and, for instance, address matters such as Web 2.0. In contrast to many other local authorities, we set our own priorities, for example, expanding the broadband infrastructure in Ulm. Together with public utilities we have worked on a project whose aim is to equip every house in Ulm with a fibre optic connection, in order to provide complete coverage of broadband (50 MB) internet access to all citizens. That is an enormous advantage in terms of location. The project will cost approximately another EUR 7 million, after 200 km of optical fibre has already been laid in the city.

HOW IS THE ROLE OF THE CIO BEING DEVELOPED FURTHER?

I believe the CIO should have a say in the policy of a public administration. They should seize the opportunities offered by innovation and implement them in city-wide policies. In addition, the CIO must be oriented on what citizens need from the administration, and be skilled in communicating those needs in an easily understandable manner.

WHAT ARE YOUR PLANS IN THE CONTEXT OF WEB 2.0?

We are convinced that as a location we can only remain attractive in the long-term if we can get young people involved in social debate and with what is happening in the city. We are also trying to reach them where they spend their leisure time. At the moment we are considering how best to reach young people through social networks and in their communities. As a city we should also create real service offerings, establish communities and be involved in all areas relevant to the city’s interests. Otherwise young people will simply shut us out of their lives.

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"TOdaY CIOS MUST bE ablE TO SHOw THE paTH TO TakE THaT wIll bEST SUppORT THE TRanSFORMaTIOnS THaT ORganISaTIOnS nEEd TO CaRRY OUT and COpE wITH."

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FabIO dE FERRaRIGENERAL MANAGERCEDACRI

TESTIMONIALS

HOW HAS YOUR COMPANY REACTED TO THE CRISIS? DID IT PRIORITISE THE RENEWAL OF OPERATING MODELS AND STRATEGIES?

The crisis represented, and still represents, a threat but also a great opportunity. On the one hand, the pressure on both the revenues and profitability our customers is still very strong, and this inevitably affects our activities. On the other hand, this same pressure is forcing banks to rethink their operating models and re-engineer their processes, and sometimes choose outsourcing as a way to reduce costs and increase internal efficiency. In this context those who, like us, supply IT services to financial institutions are finding major growth opportunities.

As far as we are concerned, we can state that to a certain extent we anticipated the crisis, as we had already launched a renewal plan in 2008 aimed at increasing the flexibility of our organisation and the profitability of our business. We have focused on the market, defined a new internal organisational model, created new professional roles best placed to understand the needs of individual customers, and introduced new services and business models into our product portfolio (for example, we now also offer selective outsourcing services and issuing of credit cards).

We have implemented a near-shoring model, transferring some of the software development and back office operations to Moldavia, and for specific areas we have created partnerships with international vendors that allow us to always offer our customers cutting-edge solutions. And we did not have to wait long for the results of these strategic choices: in just 12 months we quadrupled our profitability!

WHAT WERE THE MAIN CHALLENGES YOU HAD TO FACE AS CIO WHEN THE CRISIS HIT THE WORLD ECONOMY AND YOUR COUNTRY IN PARTICULAR? HOW DID YOU PERSONALLY EXPERIENCE THE PAST YEAR?

Our renewal strategy is based on the need to further strengthen the leading role that our organisation has been playing for years in the outsourcing of IT services in the Italian banking market. I must say it has been a major and complex challenge, with myriad delicate consequences. When one tries to tackle a wide ranging process of evolution, it is not easy to eliminate the resistance to

change that presents itself during the journey. Internal communication in these cases is fundamental. To this end, in the last year we have paid extremely close attention to these activities, further developing the existing tools and above all communicating more with people. We then introduced systems of incentives linked to the attainment of precise objectives and based on maximum transparency. The procedures and aims of the bonuses are in fact public knowledge – mine included.

Personally I am extremely proud of how we have been able to manage this ambitious process of transformation. The markets and economy continue to present us with demanding challenges but these, if faced with enthusiasm and passion, can become great opportunities for growth, both personal and professional.

NOW THAT THE WORST SEEMS TO BE OVER, WHAT ARE THE DAILY ACTIVITIES THAT ARE ALREADY AN INTEGRAL PART OF YOUR ROLE? AND WHICH WOULD YOU DESCRIBE AS TRULY INNOVATIVE AND DRIVERS OF RADICAL CHANGE?

As I have already pointed out, I still see many perils on the horizon. 2010 is looking like a very hard year for industry players and for the markets in general. This outlook requires caution when planning activities and investments, and a capacity for innovation when expanding services. These services should be aligned with the specific needs of individual customers, to whom we have pledged to listen closely on a daily basis.

WHAT ARE THE NEW TRENDS AND PERSPECTIVES FOR THE ROLE OF THE CIO, AND IN WHAT WAY DOES THE WEIGHT BROUGHT TO BEAR BY THE CIO INFLUENCE THE ORGANISATION, GOVERNANCE AND DECISION-MAKING PROCESSES OF THE COMPANY?

Today CIOs must be able to show the path to take that will best support the transformations that organisations need to carry out and cope with. Success requires a considerable ability to analyse and understand both the issues that the companies must resolve and the impact of market developments upon all economic and financial players. And every day we work alongside the CIOs of our banking sector customers in order to define programmes that allow them to anticipate problems proactively.

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"wE nEEd TO EVOlVE TOwaRd applICaTIOnS THaT InCORpORaTE gREaTER MObIlITY, In alIgnMEnT wITH TOdaY’S nOMadIC pROFESSIOnalS."

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bERnaRd gOURaUd CIOBANqUES POPULAIRES CAISSE D’EPARGNE

TESTIMONIALS

HOW HAVE YOU ADAPTED TO THE CURRENT CRISIS ENVIRONMENT?

We had already set in motion a cost cutting process in early 2008. Our first action was to better respond to the requests of our clients. Leadership has a natural tendency to exceed the expectations of the lines of business and to generate needs for services and applications that are sometimes of a secondary nature. We re-focused the scope of our intervention on truly essential needs. The process was completed by a thorough search to find and eliminate duplication. We avoid the spread of multiple dedicated applications, and instead favour those whose scope offers possibilities for expansion. Our preference also goes to open source applications as opposed to proprietary systems, at least as far as infrastructure is concerned. Currently one third of the solutions used by our risk management system are thus open source, and the performance is excellent.

WHAT IS THE LARGEST CHALLENGE YOU ARE FACING?

The real challenge is to maintain this policy of rationalisation over the long term. Where previously you were the man bringing a solution, you become the man that says ‘No’. That’s a difficult position to hold over time. Old habits die hard, and they often emerge again once a crisis is past. That said, I do think that the current trend toward more moderate and environmentally friendly consumption is a real change in society that is causing a lasting shift in corporate culture. The low cost reflex has left its mark. Today we always ask ourselves whether we have chosen the solution that delivers performance the most economically.

YOU MENTION THE INCREASING IMPORTANCE OF SUSTAINABLE DEVELOPMENT; HOW DOES IT INFLUENCE YOUR STRATEGY?

In essence IT is not very well aligned with the requirements of sustainable development. It is energy intensive and also highly ephemeral given that it is constantly evolving. Equipment is replaced as soon as it has been depreciated in accounting terms. The notion of green IT in this context seems moderately appropriate to me. However, I think the virtualisation of technologies via cloud computing is a promising trend which will enable real economies of scale. This approach will have a strong influence on our architecture in the future.

WHAT OTHER DEVELOPMENTS DO YOU EXPECT?

The boundaries between work, rest and leisure activities are becoming increasingly permeable. For example, after a drop in activity observed at about 18:00, the company’s messaging service is active again at about 21:00. The same is true during the weekend. Schedules are becoming more flexible and the number of working environments is on the rise. In the near future managers in the lines of business will want their teams to be able to work from home. We have to respond to this trend by giving teleworking in-depth consideration and by adopting more nomadic applications better suited to mobility.

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"THE pRESSURE TO SaVE MOnEY IS HElpIng US TO aCHIEVE OUR CEnTRalISaTIOn ObJECTIVES."

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JüRgEn HäFnERPERMANENT SECRETARY RHINELAND-PALATINATE MINISTRY OF THE INTERIOR AND SPORTDIRECTOR CENTRAL AGENCY FOR IT AND MULTIMEDIA

TESTIMONIALS

DO YOU SEE HARDER TIMES AHEAD?

The pressure to limit or reduce public debt will lead to reduced budgets overall. That certainly means new challenges but it need not automatically result in smaller IT budgets. We are currently negotiating the federal government’s IT budget for 2011.

HAS THE ADMINISTRATION DECIDED TO CUT COSTS WITH THE HELP OF IT, RATHER THAN SEEKING TO CUT IT COSTS?

Since 2006, i.e. since the CIO role and organisation were set up in Rhineland-Palatinate, we have not yet had to exhaust our annual budget despite having met or exceeded all the demands placed upon the IT department. However we are also achieving gains in efficiency through the use of IT, for example by reducing the work involved in administrative processes or by handling it much more quickly.

ARE IMPORTANT IT PROJECTS FALLING BY THE WAYSIDE BECAUSE OF BUDGETARY CONSTRAINTS LINKED TO PUBLIC SECTOR DEBT LIMITATION?

On the contrary! The pressure to save money is helping us to achieve our centralisation objectives. We want to pool more data centres and we would like to set up projects on a national scale. In the past, isolated individual developments were initiated and commissioned without first checking whether those projects entailed maintenance and support costs. With the current scarcity of financial resources that will no longer be possible. We will increasingly consolidate individual applications and services that perform the same tasks in different departments. I believe that we can continue to achieve gains in efficiency in IT without the user feeling any negative impact as a result of resource constraints.

WHAT PRIORITIES DID YOU SET IN THE PAST TWO YEARS?

We consolidated our data centres and servers. Furthermore, we also pooled procurement of standard IT equipment to the greatest extent possible, and were therefore able to significantly reduce hardware and software costs in all departments.

Another area we focused on was e-government initiatives for making more of our administrative services accessible online. The “Business-Online” portal, for example, enabled us to use the federal government’s form server technology to create a seamless network in Rhineland-Palatinate for our trade offices, Chamber of Commerce and Industry start-up centres, and reception centres. As a result were able to significantly accelerate business registrations in Rhineland-Palatinate.

Furthermore, we have also worked intensively on the subject of multimedia skills in Rhineland-Palatinate in recent years. In addition to young people, we are also trying to increase participation of other population groups, such as migrants and senior citizens, in digital society.

WHAT CHALLENGES DO YOU SEE AHEAD?

Broadband internet access in rural areas will be one of the major themes in the coming years. We must overcome the digital divide between town and country, and we will be seeking more support from the federal government in order to achieve this. Furthermore, we have set ourselves the goal of offering most administrative services online in the coming years.

HOW HAS THE ROLE OF THE IT DEPARTMENT IN PUBLIC ADMINISTRATIONS BEEN DEVELOPING RECENTLY?

Currently we have a very high acceptance rate, which we’re very pleased with; our departments are literally asking us to do even more. We use the IT infrastructure to manage the state’s IT network. We naturally present annual reports so that all departments have a clear overview of our achievements. I do not believe that the role of CIO in a public administration is very different from that within a company. Their authority to make decisions is significant, and currently public sector CIOs are building skills and experience at a pace that rivals that in the private sector.

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"CIOS MakE a SIgnIFICanT COnTRIbUTIOn bY IMplEMEnTIng EFFICIEnT InFORMaTIOn SYSTEMS and SIMplIFYIng adMInISTRaTIVE pROCESSES In THE pUblIC SECTOR."

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RalF klEIndIEk CIO AND IT REPRESENTATIVEFEDERAL MINISTRY OF JUSTICE, GERMANY

TESTIMONIALS

HAS THE FINANCIAL CRISIS MADE ITSELF FELT YET IN THE MINISTRY OF JUSTICE’S IT DEPARTMENT?

Up to now we‘ve been able to benefit from stimulus package II to modernise parts of our infrastructure and give a bit of a boost to some projects, such as the electronic court and administration post box or the electronic court room. We’ve been careful not to make any costly mistakes and to ensure that the projects do not have to be scaled down when funding from the stimulus package comes to an end. However, like all the other ministries, we now have to save money in order to meet the requirements of the legally stipulated debt freeze. This is why all urgent new projects are being made a priority.

WHAT IT PLANS DO YOU HAVE FOR THE NEXT TWO YEARS?

Aside from the electronic post box and the electronic courtroom, another major IT project within the context of e-Justice is electronic versions of official documents. We are currently working on the specifications for e-files in criminal proceedings.

Overall, the idea is to introduce a computer-aided workflow from the moment when the charges are pressed through to the actual judicial hearing. We’ll be bringing the e-file right into the courtroom so we can use and share documents, drawings and procedural descriptions without any discontinuity across media. This begins with furnishing the courtroom, then equipping it with PCs and finally installing the software that enables users to simultaneously work on documents. This will be of interest to other courts as well, particularly when one considers that the number of documents involved in major cases can quickly fill 200 to 300 ring binders. We already provide these files on CD or DVD, but there's no electronic access to them during the court proceedings. These projects will really speed up many legal proceedings and make them less costly.

ARE YOU ALSO INVOLVED IN MODERNISATION, STANDARDISATION AND HARMONISATION?

We’ve made a great deal of progress in recent years in providing the legal framework that will drive these issues forward. The new Article 91C of the constitution obliges the various governmental bodies to share systems. As far as IT is concerned, I imagine that this will result in an increase in the number of joint projects and more intensive collaboration between public bodies.

In the future, national, regional and local authorities will not be able to afford to go their own way. The debt freeze will intensify the trend towards standardised products. One thing is certain – we do not need a customised solution for every application.

HAS THE ROLE OF CIO PROVED TO BE SUCCESSFUL WITHIN THE ADMINISTRATION? HOW WILL THIS ROLE DEVELOP IN FUTURE?

The role will become even more important as the cross-departmental coordination of IT projects and the use of shared platforms and service centres increases. Although CIOs chiefly act on behalf of their departments and administrative bodies, they also work together very closely and coordinate their activities via the IT Council of the Federal Government, for example. We CIOs attempt to find a common political and legal frame of reference for what are sometimes very different projects. Without this reference framework, it would be much more difficult for individual projects to obtain the necessary support and funding. CIOs therefore make a significant contribution by implementing efficient information systems and simplifying administrative processes in the public sector.

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"TECHnOlOgICal dEVElOpMEnTS aRE aCCElERaTIng. THE bIggEST CHallEngE IS TO InTEgRaTE THEM In THE EnTERpRISE SUCH THaT THEY COnTInUOUSlY InCREaSE OUR agIlITY."

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alaIn MOUSTaRd CIOBOUYGUES TELECOM

TESTIMONIALS

HOW HAVE YOU RESPONDED TO THE CRISIS?

In addition to the realities of the economic crisis, our strategy is driven by the intense competition in the telecoms market and the constant desire to satisfy our clients. We must provide products and services with increasingly high added value while continuing to reduce their unit costs. This requirement translates into increased selectivity in terms of new projects and a great deal of attention being given to the ROI of each one of them. At the same time we are rationalising our contracts with our major partners and have renegotiated the terms of our agreements on the basis of a more coherent scope. We are also successfully pursuing our policy of insourcing services linked to our core business, initiated in 2007. In addition to our integrated centres in Paris, our new internal development centre in Nantes has reached a sufficiently large size (80 developers) to yield economies of scale and corresponding cost reductions of roughly 20%. Finally, the primary challenge is to continuously gain in agility and responsiveness while bringing the teams and leadership closer together.

WHICH PLACE DO NEW TECHNOLOGIES HAVE IN YOUR STRATEGY?

We are optimising our infrastructure by means of simplification and by increasing recourse to virtualisation technologies. We also launched a green IT policy that should enable us to realise significant savings. Thanks to these two measures, we intend to realise savings of 30% in the medium term. This will be achieved by way of closing obsolete hardware rooms and modernising existing rooms with a preference for free cooling. We are also following developments in open source software closely, although these solutions are not yet mature enough to allow more intensive use in business critical applications.

HAVE YOU INITIATED NEW WAYS OF WORKING?

Yes, we benchmark more frequently than previously versus foreign operators, but also in France, in particular against companies in the automotive and energy sectors. We have also reinforced internal benchmarking to identify best practices and spread them through the organisation. In general, the current economic context is forcing us to question our methods. It’s a stimulus for the teams and a real driver of progress for the company.

WHAT IS THE GREATEST CHALLENGE YOU ARE FACING?

The pace of the world is accelerating. Quality of service, capacity for responsiveness and financial performance are governed by innovation in the way we work. Innovation is becoming the constant of a perpetually changing environment. The greatest challenge is to integrate these technologies and new working methods into our core business. We must continuously work on increasing our agility, our ability to rapidly define and deploy new service offerings. This implies thinking of an organisation, architecture and processes that can evolve and be easily modified. In my opinion, working with human resources throughout this evolution is critical. It is essential to embed a culture of proactivity and mobility to ensure that these changes are not something people merely undergo, but rather a positive shift with a promising outlook.

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"THE CIO MUST bE COnSTanTlY awaRE OF InnOVaTIVE and CUTTIng EdgE TECHnOlOgIES, ExaMInIng THE pOTEnTIal IMpaCT On THE bUSInESS, and SUggESTIng THEIR adOpTIOn aT CORpORaTE lEVEl wHERE nECESSaRY."

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pIERO pERSI DIRECTOR OF STRATEGIC PLANNING AND BUSINESS DEVELOPMENT

INDUSTRIES SPA

TESTIMONIALS

HOW HAS YOUR COMPANY REACTED TO THE CRISIS? HAVE YOU CHOSEN TO CONCENTRATE ON THE REVITALISATION OF OPERATIONAL MODELS AND STRATEGIES?

Our company’s reaction to the crisis developed in two distinct phases. The first took place between September 2008 and March 2009, and was strongly influenced by the uncertainty of the markets and the difficulty in foreseeing what would happen in the near future. In this context we drew up a plan for reducing costs and postponed certain investments, focusing exclusively on our core business. In April 2009, after successfully concluding the sales campaign and achieving positive results in the activities we manage directly, we immediately moved from the first phase into the second. This involved resuming investment, particularly in the retail segment and the supply chain, which are strategic areas for the future development of the Group. In the end, thanks to the strong financial performance we delivered, there was no need to change our strategies and implementation thereof has not been interrupted, unlike in many other companies in the sector.

WHAT WERE THE MAIN CHALLENGES THAT THE IT FUNCTION HAD TO FACE WHEN THE CRISIS HIT THE WORLD ECONOMY AND OUR COUNTRY IN PARTICULAR? WHAT WAS YOUR PERSONAL REACTION LAST YEAR?

From my point of view, I can say that the main challenge was managing multiple projects with stakeholders in various functional areas, each with their specific needs and expectations of rapid implementation. The management of these needs and the coordination of internal and external resources, involved in numerous activities at the same time, were the aspects that characterised 2009. In this sense it was a very intense year, with a greater level of ‘pressure’ than usual.

NOW THAT THE WORST SEEMS TO BE OVER, WHICH ACTIVITIES HAVE BECOME AN INTEGRAL PART OF DAILY OPERATIONS?

Since the company was not seriously affected by the crisis, our objectives have not changed. We have continued, and will continue, to concentrate above all on new projects, rather than on day-to-day management. Consequently, the activities that are carried out on a daily basis are those linked to strategic projects, ranging from the setting of objectives with the heads of other corporate functions,

to the definition of technical specifications, the allocation of tasks to both internal staff and external consultants, monitoring progress and implementation deadlines, and constant financial control to ensure compliance with the investment budget.

WHICH ACTIVITIES DO YOU THINK WOULD BE TRULY INNOVATIVE, BRINGING ABOUT RADICAL CHANGE?

What has changed over the past year is not so much the introduction of innovative new activities, as the capability for parallel rather than sequential management of the various tasks. This approach is closely linked to the need to strengthen our systems for supporting the growing requirements of the business. Activities are often assigned to various work groups with shared resources. In this case the complexity lies in the management of the workloads, to ensure that deadlines for implementation are respected to the greatest extent possible.

WHAT ARE THE NEW TRENDS AND PROSPECTS FOR THE CIO, AND HOW DOES THE CIO INFLUENCE THE ORGANISATION, GOVERNANCE AND DECISION-MAKING PROCESSES OF THE COMPANY?

I hope that the CIO will be increasingly seen as a fundamental partner, involved from the initial stages of the strategic planning process, and not just as a “technician” with strong project management and problem solving skills. This would mean that IT is no longer destined to “fix” situations attributable to the decisions of others, but can instead make a proactive and positive contribution to key decisions concerning the organisation and its processes. At the same time, I feel that the CIO must be constantly aware of innovative and cutting edge technologies, examining the potential impact on the business, and suggesting their adoption at corporate level where necessary.

WHAT ARE YOUR PRIORITIES FOR THIS YEAR?

The first objective we have set is to complete the implementation of strategic projects already underway in the areas of retail sales, supply chain management and customer relationship management. We want to strengthen our internal organisation, by building specific technical capabilities in terms of project and application management.

Additionally, we are investing in hardware that allows us to install new solutions, improve the response times of applications and increase security levels.

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"THE CORE TaSk OF THE CIO IS STIll TO pROMOTE TECHnICal InnOVaTIOn wITHIn THE pUblIC adMInISTRaTIOn, SIMplIFYIng and OpTIMISIng pROCESSES and REdUCIng THE COMplExITY OF SYSTEMS."

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FRanz JOSEF pSCHIERER SECRETARY OF STATE FOR FINANCE, BAVARIA

TESTIMONIALS

HOW HAS YOUR ORGANISATION REACTED TO THE CRISIS? HAVE YOU REVISED YOUR BUSINESS MODEL AND YOUR POLICIES?

In times of economic crisis, public institutions are predominantly affected indirectly, through citizens and businesses making use of their services, and also by countermeasures taken by the government to combat the crisis. Taking this into consideration, it was not the business model that should have been revised. Rather, during times of financial turbulence affecting the entire economy, it is better to support the flexibility of the public administration by way of appropriately structured IT services, in order to be able to respond better to the new administrative requirements. That is why we began to implement a service-oriented architecture in our IT landscape in order to improve the interoperability of systems. It enables us to maintain seamless processes, which reduce the processing times and error rates of administrative procedures considerably, and we can also react much more quickly to any process changes required thanks to the looser grouping of the relevant applications via standardised interfaces. Both increase customer benefits significantly.

HAS THE ADMINISTRATION DECIDED TO CUT COSTS WITH THE HELP OF IT, RATHER THAN CUTTING IT COSTS?

IT has always been regarded as a tool for modernisation by the administration, both to optimise their services and to realise overall cost savings. Reducing investments in IT would limit the total potential for modernisation and optimisation within the administration. Even if resources become scarcer in general, we are extremely cautious about making cutbacks in IT budgets.

WHAT WERE THE BIGGEST CHALLENGES WHEN THE ECONOMIC DOWNTURN HIT? HOW HAVE YOU PERSONALLY FOUND THE LAST YEAR?

As I see it, a crisis is not only a challenge to be overcome, but also an opportunity to come out of difficult times stronger. Readiness to enter into partnerships and cooperation is never higher than in times of difficulty. This has enabled us in the past year to renew our agreement with the municipal coordination and representation organisations, and has even resulted in a variety of integrated, future-oriented collective projects. Similarly, we have intensified cooperation with trade associations and the scientific community, and have already undertaken a range of concrete projects, such as process studies on the further development of e-government for the benefit of citizens and businesses.

WHERE DO YOU NOW SEE CHANGES IN THE OUTLOOK FOR THE ROLE OF THE CIO?

The core task of the CIO is still to promote technical innovation within the public administration, simplifying and optimising processes and reducing the complexity of systems. On account of the growing need to seamlessly group processes across organisations, all partners’ efforts must now be increasingly coordinated, processes and systems must be matched to one another and interfaces must be standardised. Thus the CIO is increasingly required to act as a moderator, driver and coordinator in the context of partnership-based cooperation, so that win-win solutions can be achieved for the greatest number of participants.

WHAT PRIORITIES HAVE YOU SET FOR THIS YEAR?

We will be working on IT security and green IT in particular, since they are fundamental prerequisites for citizens’ confidence in services and offerings from the public finances and administration. IT security is – especially in view of the growing threats on the internet – a factor which is crucial to successful development of e-business and e-government. Media reports reveal time and again that there is a considerable need for CIOs to act here, to sufficiently safeguard their organisations’ IT systems. This applies all the more for public institutions which are always in the spotlight. The topic of green IT, with its important aspects of energy saving and sustainability, is also relevant in the context of the function of the state and big business to act as role models in matters related to the public good. It is generally recognised that there is enormous potential here for reducing energy use and CO2 emissions, and we are trying to fulfil this potential by implementing suitable operational concepts and via an integrated approach, starting with sourcing all the way through to disposal of machines and peripherals. Here too we provide support to both state data processing centres in particular.

In addition, the e-government offerings are to be further developed following in-depth analysis of how best to meet the requirements of citizens and businesses. We have already commissioned the relevant scientific studies. Moreover, we are monitoring developments at an international level, where there is an increasing trend toward citizen participation (e-participation) and the use of Web 2.0 technologies.

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"pUblIC InSTITUTIOnS MUST gET MORE InVOlVEd In InTERaCTIVE COMMUnICaTIOn wITH THE pEOplE."

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JöRn RIEdEl CIOCITY OF HAMBURG, GERMANY

TESTIMONIALS

WHAT ARE YOUR CONCERNS AT THE MOMENT?

Doing more with less. The financial situation in the public sector is forcing a fundamental reorganisation within public institutions. This will only be possible through more advanced use of IT. At the same time, financial resources allocated to IT are not going to increase. All IT projects in the city are grouped together in a central IT budget so that politicians can see how much money we are spending at any given time. In addition, we are not simply making our costs transparent, we also making the financial implications of IT use transparent. Basically, it comes down to working out the “business value” of IT, or perhaps in the public sector it would be more appropriate to talk about the “public value.”

WHAT SIGNIFICANT PROJECTS ARE YOU CURRENTLY RUNNING?

Of the transverse projects, i.e. the ones that are relevant for all the senatorial city hall departments, migrating our accounting system from public sector accounting principles to commercial financial reporting standards is the most important. In addition, we are planning to reorganise the entire staff. We are also investing in the modernisation of our internal collaborative applications to increase staff productivity, and in the implementation of simplified processes for our public sector customers. Alongside these three general projects we are pursuing 450 extremely varied projects spread across Hamburg’s administrative areas. For example, modernisation of youth welfare services, using IT to support education in schools and supporting public health departments in their monitoring activities.

WHAT ROLE DO E-GOVERNMENT PROJECTS PLAY?

In recent years we have won awards in every e-government competition, and in this respect we are far ahead of the rest of Germany. We now keep online services in mind as a matter of routine when redesigning existing administrative processes or when designing new ones for our public sector customers. Instead of online services I actually prefer to call them “seamless business processes with an interface for the public sector customer”. Although that sounds more complicated, it does clarify precisely what the situation is. Citizens do not have access to a distinct online service. Rather, they are an integral part and beneficiary of a business process which we want execute as efficiently as possible.

ARE FINANCIAL CONSTRAINTS RESULTING IN A MOVE TOWARDS STANDARDISATION AND CENTRALISATION?

In this regard, we've already gone quite far in that direction here in Hamburg. For example, we maintain a shared central IT service centre with the other authorities of Schleswig-Holstein and Bremen. As regards IT systems for the tax authorities, we're also collaborating with Lower Saxony and Mecklenburg-Vorpommern. It is likely that other administrative departments will increasingly head in the same direction. Generic internal department processes, such as travel expense accounting, should also be centralised to a much greater extent.

WHAT ARE THE THREE BIGGEST CHALLENGES FOR THE NEXT FEW YEARS?

Firstly, cutting costs within the public sector. This will only happen with more streamlined processes. Secondly, government departments have to offer their citizens a level of online service comparable to that offered by banks and similar service providers. Thirdly, public institutions must get more deeply involved in interactive communication with citizens. They should clearly explain their approach to policy and discuss it with the stakeholders concerned – a sort of Public Sector 2.0 if you will. The issue of transparency in administrative affairs is also increasingly becoming an issue of legitimacy of the public administration. The IT sector can supply the means for this communication to take place.

WHAT ABOUT THE ROLE OF THE CIO IN PUBLIC ADMINISTRATIONS?

It will certainly be no less important than it was before. And for two reasons: there are no administrative processes left that can be handled without IT. The acceleration required in the execution of administrative processes is also impossible without IT. All in all, the role of IT as an enabler of the organisational change demanded by society will certainly become more important in the next three to five years

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"InCREaSInglY OFTEn I aM aSkEd TO HElp dEVElOp THE STRaTEgY OF THE COMpanY."

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albERT TIMMERManS CIOSPE/LUMINUS

TESTIMONIALS

HOW HAS SPE/LUMINUS EXPERIENCED THE RECENT CRISIS?

As an energy company we have felt little direct impact. The simple truth is that our customers still need electricity and gas, which means our revenues are not disrupted. But the crisis has started a major new trend, namely strong growth in the use of solar panels. In other words, our customers have become producers in their own right. This ‘competition’ has forced us to consider alternative business models. For example, smart metering technology which will ultimately enable us to collect meter readings online. Then we can finally move away from billing on the basis of advance payments, which will make pricing far more transparent for customers. For us this simplification will mean considerable cost savings. The energy sector has unfortunately managed to add a lot of complexity to a simple product.

ARE THOSE COST SAVINGS A HIGH PRIORITY FOR YOU?

Absolutely. Even before the crisis, we set out our long and medium-term strategy. Cost reduction is a major element thereof. In this context, we intend to cut our internal IT costs by half within five years. SAP is as it were the backbone of our organisation, but over the course of years we have developed myriad applications around it. Moving forward, we will use SAP in much greater depth and rationalise the peripheral applications. ‘Simplification’ is thus the buzzword.

HAVE YOU NOTICED THE SAME TREND AMONG OTHER CIOS?

In general, the entire IT department is seen in a different light today than it was before. Previously it was a ‘must have’, whereas now the issue is first and foremost what the concrete benefits are for the company. In practice they are related primarily to cost savings and efficiency – which are of course very important in the current economic context. Whereas in the past companies always wanted a tailor-made solution, so-called customisation, we now try to integrate standard packages to the greatest extent possible. This in turn helps to reduce time to market.

HAS THE ROLE OF THE CIO ALSO CHANGED?

For a long time, the role of CIO – along with the entire IT department – was purely a support function. That is still one of our tasks today, however, as CIO I am increasingly asked to contribute to our strategy. This is also to be seen in the context of the growing importance of ‘enterprise architecture’, whereby IT cooperates with leadership to ensure the company is developing in the right direction. Simplifying the entire IT structure enables the CIO to be more responsive, and thus his influence on decision making within the business grows. This in turn makes the job of the CIO that much more interesting. In addition, I have the advantage that at SPE/Luminus IT is important in various areas. Not only for administration and back office operations, but also for production – for example, for the monitoring of our wind turbines. So there is definitely no lack of challenges!

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"I COnSIdER MYSElF aS a COnSUlTanT TO THE ExECUTIVE COMMITTEE On MaTTERS OF IT STRaTEgY and TaCTICS."

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FREddY Van dEn wYngaERTCIOAGFA ICS

TESTIMONIALS

HAS THE ECONOMIC CRISIS INFLUENCED YOUR WAY OF WORKING?

It has above all resulted in certain aspects of our work being reinforced, such assessing priorities and the focus on price setting, cost structure and revenue growth. Governance has also increased in importance. Because Agfa ICS (Information and Communication Services) provides services to the three business groups and associated companies, we regularly participate in executive committee meetings and business meetings. We actually function in the role of consultant to business executives – just like external consultants, except they would never have access to all the information we do. This means that we can actively contribute to revenue growth and cost reduction. Among others, the strong cooperation between IT and the businesses is helping us emerge from the crisis without major mishaps.

WHICH IS MORE IMPORTANT? COST SAVINGS OR REVENUE GROWTH?

Both. Realising cost savings is a continuous process, but our contribution to revenue growth is closely linked to our new business model. We help make one stop shopping possible for clients. For example, hospitals come to Agfa for both applications – such as medical imaging apparatus – and infrastructure components, and we also host these applications in our data centres. For instance, we recently took on the hosting of the imaging data of four German hospitals and part of that of the Antwerp Hospital Network (Ziekenhuis Netwerk Antwerpen - ZNA) in our data centres. The crisis has helped us a bit here – clients want to outsource these services, which gives us the chance to put our resources and competences to optimal use.

DO YOU FEEL THAT YOU ARE MORE INVOLVED IN DECISION MAKING THAN PREVIOUSLY?

It’s no coincidence that in the role of CIO I report directly to the CEO. That demonstrates the importance Agfa places on IT. I also regularly meet with the executive committee regarding all sorts of matters related to IT, innovation and technology. We are also involved in mergers and acquisitions right from the start, in order to be able to evaluate the impact of IT on the entire operation. In fact, I consider myself as a consultant to the executive committee on matters of IT strategy and tactics.

WHAT ARE THE MOST IMPORTANT PRIORITIES FOR THE NEAR FUTURE?

How many items am I allowed to put on the list? I want to identify further synergies within the organisation, both in the businesses and within IT. Agfa ICS also has to continue to contribute to revenue growth, by offering our competences as subcontractors to both internal and external clients. We also have to support the various transformation programmes underway in the business groups and integrate the IT system. We currently have three SAP backbones. Now we need to integrate the regions using older systems into them. In this context, the United States and Canada need to be integrated into the new SAP backbone for Healthcare. We may well be in a period of economic crisis, but you won’t be surprised to hear we have our hands full.

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"InTEllIgEnT E-gOVERnMEnT bRIngS SIgnIFICanT COST SaVIngS."

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HORST wESTERFEld STATE SECRETARY AT THE MINISTRY OF THE INTERIOR AND SPORT

GERMAN STATE OF HESSE

TESTIMONIALS

HOW HAS THE ECONOMIC AND FINANCIAL CRISIS AFFECTED IT IN HESSE?

We can of course use the debt freeze as an incentive to intensify efforts to increase the efficiency of public sector IT. But even without these changed background parameters, it was already clear that there was an urgent need for public sector IT at the federal, state and local government levels to consider how it could better utilise its resources. Projects which the private sector has been working on for some time, such as consolidation, virtualisation and cloud computing, can be used to optimise resource usage and hence reduce costs.

ARE YOU ALSO CONSIDERING FURTHER CENTRALISATION OF IT IN HESSE?

Yes, we have been driving this forward for ten years now. We have been consolidating computing centres and amalgamating many services for the whole state and some local authorities in shared service centres. For example, unlike some other states, we have only one state computing centre, the Hesse Data Processing Centre (HZD), and just one central local government computing centre, E-Kom 21. We already provide centralised email, the citizen and staff portal, document management, the “Hessen-PC” project, and the “Hessen-Netz” network as central services at the state level. We also provide SAP solutions, for accounts and human resources for instance, centrally from the HZD. These developments are not yet complete. We will also offer other cross-departmental processes as shared services. This applies to public sector staff, citizens and companies alike, and we would like to offer these groups additional functionality via the staff and citizen portal. Along with the state of Rhineland-Palatinate, we have built a new computing centre in Mainz which will become operational this year. This will launch inter-state collaboration on a larger scale. I am certain that inter-state cooperation of this nature will extend to other fields. The current cost cutting measures will encourage this.

HAS THE CRISIS AFFECTED THE IT BUDGET?

Of course it has. If we offer more cost effective services, expenditure has to fall. Increased productivity must lead to a reduction in overall costs.

WHERE DO YOU SEE YOUR PRIORITIES OVER THE NEXT TWO YEARS?

We will continue to focus on innovation but will keep a close eye on costs. We will increase efforts to develop the portal into the main process portal used for citizens, businesses and staff. Hessen.de will become established as the focal point on the internet for citizens and businesses where all applications and registrations can be made online. If we design these e-government processes intelligently, we will achieve significant cost savings. We also want to promote the shared service idea to the inter-state grouping. We are thinking of making the applications we have developed available to other states and operating them on their behalf. We will also continue to virtualise the IT infrastructure and significantly reduce the number of applications that we use.

HESSE APPOINTED THE FIRST STATE CIO IN 2003. HOW HAS THIS ROLE CHANGED SINCE THEN, AND HOW WILL IT DEVELOP IN THE FUTURE?

It has developed in a similar way to in the private sector. Nowadays, CIOs are more heavily involved with processes and organisational matters than with technical issues. But in principle, it is true that a CIO who is a member of the government at state secretary level, for example, has an excellent opportunity to shape progress. He can make a huge contribution to the modernisation of the public sector. But to do this, he must have the necessary authority and budgets. Otherwise his influence is very limited.

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CIO Barometer 2010

RECOVERY OR bREakdOwn?

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CIO Barometer 2010

RECOVERY OR bREakdOwn?

Page 70: CIO Barometer 2010

Designed and produced by CSC’s South and West Region Marketing & Communications department.© 2010 CSC. All rights reserved.

About CSC

The mission of CSC is to be a global leader in providing technology-enabled business solutions and services.With the broadest range of capabilities, CSC offers clients the solutions they need to manage complexity, focus on core businesses, collaborate with partners and clients and improve operations CSC makes a special point of understanding its clients and provides experts with real-world experience to work with them. CSC is vendor independent, delivering solutions that best meet each client’s unique requirements.

For 50 years, clients in industries and governments worldwide have trusted CSC with their business process and information systems outsourcing, systems integration and consulting needs.

The company trades on the New York Stock Exchange under the symbol “CSC.”

CSC

REGIONAL HEADQUARTERS

Immeuble Balzac10, place des Vosges92072 Paris-la Défense Cedex+33 1 55 70 70 70

BelgiumHippokrateslaan 14B-1932 Sint-Stevens-Woluwe+32 2 714 7111

FranceImmeuble Balzac10, place des Vosges92072 Paris-la Défense Cedex+33 1 55707070

Axe Liberté14, place de la Coupole94227 Charenton+33 1 43 53 57 57

AéropôleBâtiment 5,2e étage5, avenue Albert-Durand31700 Blagnac+33 5 67 69 89 00

Luxembourg5, rue Eugène-RuppertL-2453 Luxembourg+352 24 834-1

PortugalLagoas Park, Edifício 12740-264 Porto Salvo+351 21 00 40 800

ItalyCentro Direzionale MilanofioriStrada 3, Palazzo B120090 Assago (MI)+39 0257775.1

Via Paolo di Dono 7300142 Roma+39 06 515061

Via San Crispino 2835129 Padova+39 049 6983111

Strada Pianezza 28910151 Torino+39 011 4904768

SpainAv. Diagonal, 545 Planta 608029 Barcelona+ 34 93 4930900

C/ Pedro Teixeira, 8 - 5ª PlantaEdificio Iberia Mart I28020 Madrid Tlf.: 91.555.35.00

CSC Asturias IT Service CenterValle de Tamón, s/n33469 – Avilés+34 985 124101

CSC HEADQUARTERS

The Americas3170 Fairview Park DriveFalls Church, VA. 22042United States+1 703 876 1000

Europe, Middle East,AfricaRoyal PavilionWellesley RoadAldershot,Hampshire GU11 1PZUnited Kingdom+44 (0)1252 534000

Australia26 Talavera RoadMacquarie Park, NSW 2113Australia+61 (0) 29034 3000

Asia20 Anson Road #11-01 Twenty Anson Singapore 079912 +65.6221.9095