eveciof7.ppt - University of Missouri

advertisement
ROLE OF THE CIO
Alexandra Bleitz
 Matthew Clabaugh
 Mingjie Li
 Choong Kwan Kang

1
OVERVIEW

General information about CIOs
 Issues
facing CIOs
 Demographics of CIOs
 Turnover rate among CIOs
 Business and people skills needed for CIOs
CIO Interviews (4)
 CIO Panel Discussion

2
CURRENT ISSUES FACING CIOS
3
TOP CHALLENGES FACING CIOS
IT Management
Technology
Personal effectiveness
Aligning IT and business
goals
Integrating/enhancing
existing systems
Shortage of time for
strategic planning
IT enabled process
movement
Ensuring data security and
integrity
Overwhelming back log of
requests
Business continuity/risk
management
Business Intelligence
Inadequate budget
N=568
Source: 5
4
DEMOGRAPHICS OF IT
5
GENDER IN IT



Men outnumber
women in all IT 4-to-1
Men represent 85% of
IT Leaders, while
women represent 15%
The number of female
IT leaders are on the
decline.
N=568
6
Source: 5, 11, 18
JOB QUALIFICATIONS

Many have had degrees in computer
science, software engineering, or
information systems.

There is a growing demand for
leaderships skills, business
knowledge, interpersonal skills and
strategic foresight which has taken
precedence over technical skills.

Critical skills cited by current CIO’s
include communicating effectively,
Strategic thinking/planning, the
ability to lead and motivate staff.
Over half of respondents cited
management/leadership skills as
their primary strength.
N=568
7
Source: 5, 17
NEW EDUCATION FOR IT LEADERS



The Federal CIO council developed a list of “high-level
competencies” that CIO’s need. Which are to be put to
use in selected institutions that train up-and-coming
CIO’s.
The final list came to 549 learning objectives in 12
categories.
Concepts included behavioral principles, theories of
motivation, visionary leadership, building expertise,
performance assessment and retention.
Source:17
8
TURNOVER AMONG CIOS
9
AVERAGE TENURE LENGTH OF CIOS



2006
2005
2004
5 years
4 years and 11 months
4 years and 7 months
N=568
Average State CIO tenure length 26 months
Average UK CIO tenure length 3 years
Source: 5, 14, 15
N=50 +
N=350 companies
10
REASONS FOR CIO TURNOVER
Acquisitions and mergers
 Not fitting into company culture

 Groomed
techie not used to management
 State CIOs not the right party for the job after
election (Steve Kolodney, Washington State)

Can’t overcome challenges
 Poor

performance
Developing role (unstable)
 Don’t
always know what is required
Source: 1, 15, 16, 19
11
REASONS FOR CIO TURNOVER CONTINUED

Resume building
 Jump
from job to job
 Fix it uppers

Habitual resource fighting
 Fight
for money to acquire programs
 Constantly justify budget
 CIO
Source: 1, 9, 16
Jeff Loyett at a top law firm
12
BUSINESS AND PEOPLE SKILLS
REQUIRED FOR A CIO
13
THE PRIMARY STRENGTH AS A CIO
Communication/leadership/management skills
52%
Business and/or industrial knowledge/experience
20%
Project management skills/project execution skills
Deep knowledge of technology
12%
Turnaround/change management skills
7%
10%
N=568
Source: 5
14
THE MOST PIVOTAL PERSONAL SKILL REQUIRED
FOR SUCCESS IN THE CIO ROLE
Ability to communicate effectively
71%
Strategic thinking and planning
Ability to lead/motivate staff
51%
Understanding business processes and operations
43%
Ability to influence change in others
34%
Understanding industry trends and business strategy
15%
Negotiation skills
13%
Through knowledge of technology options
12%
Technical proficiency
10%
50%
N=568
Source: 5
15
COMPANIES

Spartan Light Metal Products
 CIO

Build-A-Bear
 CIO

Dave Finnegan
Marvell Asia Pte Ltd
 IT

Chris Franks
Director Vincent Chee
Samsung Heavy Industries
 IT
Director Boohyung Kim
16
SPARTAN LIGHT METAL PRODUCTS INC.



Privately held company founded in
1967.
Vision for the future: “The Global
Value Leader in Light Metal
Technologies- Through Engineered
Solutions and Competitive Costs.”
Working with a wide range of
manufacturers, from automobiles
and trucks to power tools, electronic
components and many more.
17
Spartan Light Metal Products Inc.
1100 Employees
 4 business locations:

Plants in: Mexico, Missouri; Sparta, Illinois; and
Hannibal, Missouri
Corporate Office: At Geyer Road in St. Louis, Missouri
Revenues greater than $200 Million
 Doubled in size in the past 7 years

18

The leading, and only international, company
providing a “make your own stuffed animal”
interactive retail-entertainment experience
Source: 7
19

Major products are the bears but make over
30 different styles of animals with variety of
clothing, shoes, and accessories
Source: 7
20
Founded in 1997 by Maxine Clark
 IPO in 2004
 Stores:

Retail (company owned): 293
 Franchised (international): 41


Employees:
Full time: 1200
 Part time: 5700

Source: 7
21
BUILD-A-BEAR’S TARGET MARKET
Families with children ages 3-12
 Grandparents
 Aunts and Uncles
 Teen girls with boyfriends

Source: 7
22
BUILD-A-BEAR SALES
Source: 7
23
MARVELL ASIA PTE LTD
Founded -- 1997
 Size of MAPL-- 253 employees
 Locations of MAPL-- Singapore, one sales
representative office in China
 Products of MAPL --Chips

 Chips
for Datacom and Storage.
 Datacom
includes Wireless, Printer, Video and etc.
24
MAPL’S REVENUES





Year of 2003 (Feb 02~Jan 03):
US $278 million
Year of 2004 (Feb 03~Jan 04):
US $605 million
Year of 2005 (Feb 04~Jan 05):
US $934 million
Year of 2006 (Feb 05~Jan 06):
US $1,303 million
Year of 2007 (Feb 06~Jan 07):
US $1,785 million
1800
1600
1400
1200
1000
800
600
US Dollars
(millions)
400
200
0
2003 2004 2005 2006 2007
25
Founded August 5, 1974
 10,565 employees
 Located in Seoul, Korea
 8 overseas branch offices
 1 manufacturing subsidiary

26
SAMSUNG’S MISSION AND CORE VALUES

By providing ships and facilities that are safe, environmentfriendly, economical and convenient, the company is able to
satisfy any and all customer demands for quality.
27

Major products:
 Commercial,
Industrial ships, Cruise and Ferries
 Offshore platforms
 Digital business
 Construction and Engineering
28
SAMSUNG’S WORTH (2006)
Sales: $635,169,072
 Total Assets: $898,918,471
 Capital Stock: $115,493,703
 Profit: $212,500,000

29
CIO BACKGROUND
Education:
Spartan’s
Chris Franks
Build-A-Bear’s
Dave Finnegan
Marvell’s
Vincent Chee
Samsung’s
Boohyung Kim
Bachelor of
Science in
Mechanical
Engineering
Bachelor of
Science in
Information
Technology
Bachelor of
Science in
Engineering
Bachelor of
Science in
Engineering
Masters of
Science
Work History:
•Design Engineer
•Sold computer
systems and
hardware
•Developed own
company using
computers for
design and
development
•Information
Systems Manager
(1990-1996)
•Systems
Engineer/Project
Manager (19961999)
•Director of
Inbearmation
(1999)
•Worked in IT
department for
MAPL
•Promoted from
within to IT
Director (2006)
•Worked in IT
department for
Samsung
•Promoted from
within to IT
Director (2006)
30
HIERARCHY OF SPARTAN LMP
CEO
Vice President
of Human
Resources
Human
Resources
Chief Financial
Officer
Finance
Chief
Operations
Officer
Director of IT
Plant
Managers
IT Division
Plants
31
BUILD-A-BEAR HIERARCHY
CEB: Maxine
Clark
CWB: Paul
Bundonis
CMB: Teresa
Kroll
•Weekly meetings with
•CFB
•CEB
•CEB and CFB
•All C-level officers
COB: Scott
Seay
CFB: Tina
Klocke
CIB: Dave
Finnegan
CIB: Dave
Finnegan
32
HIERARCHY OF MAPL
Senior IT
Director of
Marvell
CEO of
MAPL
Financial
Controller
Sales
Director
Operation
Director
R&D
Director
IT
Director
33
HIERARCHY OF SAMSUNG

Reports to the CEO and Executive Director of
Management Support
 Meet
formally twice a month
 Usually only sees him during formal meetings
34
CIOS QUALITY TIME
Spartan’s
Chris Franks
Build-A-Bear’s
Dave Finnegan
Time spent on various
projects varies from day to
day
Handles the main (large)
IT projects
Small size of staff (10)
requires his personal help
on IT projects
Strategic involvement
Weekly meetings-Lots of
them.
Basically spends all his
time in meetings and on
large IT projects
35
CIOS QUALITY TIME
Marvell’s
Vincent Chee
Samsung’s
Boohyung Kim
Time on projects
60%
25%
Time Training
10%
5%
Time on Maintenance
30%
5%
Time on Management
Support
X
65%
36
IT DEPARTMENT AT SPARTAN LMP
Started in 2000 as the first director of IT.
 10 people on staff that maintains operations at
four facilities across the state.





Tech support at each facility
Server and Network Administrators (Manager)
Software development and Programmers
Department handles email, ERP, purchased
programs (integration), all hardware resources
(servers, laptops, telecommunications, etc), and
Special resources for the engineers who develop
designs.
37
CONTROL AND DECISION MAKING
Reports to CFO whom is seen frequently
 Meetings are scheduled quarterly with CEO
 Yearly IT budget in the range of $2 million
 Project costs vary from $5k-$15k
 Responsibility of IT decisions:

<
100K: IT monarchy
 > 100K: IT Steering Committee (Business
Monarchy)
38
BUILD-A-BEAR’S IT DEPARTMENT
CIB (Chief InBearmation Bear) is the head
 40 employees
 Handles:

Service desk (24/7 support)
 Contracts with suppliers
 Computers, mainframes, routers, servers, etc

39
BUILD-A-BEAR’S IT BUDGET

Dave determines the budget each year and
then gets approval from the CFB
 There
is no predetermined range for the budget
such as 5% of Revenues

Dave determines what IT projects to invest in
then takes it to other C level officers to look
at/approve
40
IT DEPARTMENT-MAPL


Employees: 16 in MAPL and around 50 for Marvell
WorldWide
Budget: 1% of revenue of Marvell




Year of 2007(Marvell): US $2,238 million
IT project cost: determined by whether it is a software
upgrade/enhancement done internally or by
consultants or an equipment upgrade.
Average length of IT projects: 3 to 6 months
IT Projects investment decisions made by CEO and
Senior IT Director together
41
IT DEPARTMENT-SAMSUNG
Employs 31 people and an additional 65
through partnerships
 Budget: $20 million

 General
Expenses: $14.7 million
 Investment: $5.3 million
Budget planned every August by the IT
department
 Reviewed within the department and discussed
with financial department

42
IT DEPARTMENT-SAMSUNG CONTINUED

IT Projects:
 Average
cost: $200,000~300,000
 Average length: Less than 1 year
 CIO mainly decides on what projects to invest in but
also depends on the size of the investment
43
SUMMARY OF IT DEPARTMENT DIFFERENCES
Marvell Asia
Pte Ltd
Samsung Heavy
Industries
Spartan LMP
Build-A-Bear
10
40
16
31
Budget
≈$2 million
Not specified
1% of
Revenue
$20 million
Project Costs
$5K-$15K
Varies
Varies
$200K~300K
Project Length
Varies
≈1 year
3-6 months
≈1 year
Reports to
CFO
Reports to
CFO
Reports to
Senior IT
Director
Reports to
CEO
Depends on
level of
spending
Depends on
level of
spending
All decisions
made by CEO
and Senior IT
Director
Depends on
level of
spending
Employees
Control
Project
Decisions
44
MOST IMPORTANT SKILLS FOR A CIO
Spartan’s
Chris Franks
Build-A-Bear’s Marvell’s
Dave Finnegan Vincent Chee
Samsung’s
Boohyung Kim
People skills
Diplomacy:
Every
department
wants a piece
of IT
Able to align IT
strategy to
business
values
Business mind
Good mix of
technology
skills
Business
Focus: need to
look at valued
added
Create an
environment
that
encourages
individual
creativity and
ownership
IT technical
mind
A good
understanding
of how the
business
works
Communication View change
skills
as an
Communication
skills
opportunity
45
TOP 3 CHALLENGES AND HOW TO TACKLE
THEM:



Getting people to understand the value of IT
Getting adequate resources for IT projects. Getting projects
done in reasonable amount of time.
User Security. Security for processes within the company.
Solutions:
 Greater involvement with top business managers to
demonstrate value added and provide results.
 Stay vigilant. Staff has to understand new risks.
46
TOP 3 CHALLENGES AND SOLUTIONS FOR DAVE



Bandwidth: wants to quicken implementation timelines
and overall speed
Security: privacy, identity theft, worms, viruses, etc.
# of projects: Build-A-Bear is a growing company so have
many concurrent projects
Solutions:



Bandwidth: Automate as much as possible, add staff where
needed, prioritize projects
Security: quarterly reviews, best practice sign off, and external
audits
Number of projects: try to increase completion speed, but
mainly learn to deal with it
47
THREE BIGGEST CHALLENGES-MAPL
System Outages,
 Application performances,
 Stability of rollout projects
Solutions:
 System and Application early warning
monitoring tools.
 Stringent application testing process
 Load simulation

48
THREE BIGGEST CHALLENGES-SAMSUNG
PI: President Identity
 ERP: Enterprise Resource Planning
 KMS: Knowledge Management System
Solutions:
 BPM: Business Process Management

49
TOP 3 CHALLENGES FOR CIO
Spartan’s
Chris Franks
Build-A-Bear’s Marvell’s
Dave Finnegan Vincent Chee
Samsung’s
Boohyung Kim
Getting people
to understand
value of IT
Bandwidth
System
Outages
PI
Acquiring
adequate
resources for
projects
Security
Application
performances
ERP
User security
Number of
projects
Stability of
KMS
rollout projects
Which challenges fall under which category: IT management, technology, or personal
effectiveness?
50
BIGGEST ACCOMPLISHMENTS



Finding several redundant activities and consolidating
programs.
Creating the IT division and overcoming support and staffing
issues.
Currently having standard decisions for IT basics.
What he would change:
 Would have put together a 5-year plan sooner and pressed
harder for resources.
51
DAVE’S BIGGEST ACCOMPLISHMENT
Dave was in charge of acquiring a UK company
 Two years prior to inking the deal, Dave was in
London testing to see if the company would be
a good fit not only for IT but the entire company

 Very
strategic Role
52
BIGGEST SUCCESS-SAMSUNG

Smooth process of ERP establishment on
schedule, expected to open in January of 2008.
 Managed
400 task force personnel involved in the
ERP project
 Acquired project management technology and skills
through the ERP project
53
MEASURES OF SUCCESS:
Spartan LMP
Build-A-Bear
Marvell Asia Pte
Ltd
Samsung Heavy
Industries
• The company is
running smoothly
with no support
calls coming in
• The ability to
lead a team (not
just IT people)
•Customer
Satisfaction
•Achieving results
as scheduled in
the project
planning stage
• Helping the
business to grow
and ultimately be
more profitable
• Getting
information to
people when they
need it
• Real business
results: adding
value to the
company
• Increased worker
productivity
• Innovation
• Customer
satisfaction:
making sure the
company runs
smoothly
54
STRATEGIC OR TACTICAL
Spartan’s
Chris Franks
Build-A-Bear’s
Dave Finnegan
Marvell’s
Chee Vincent
Samsung’s
Boohyung Kim
Perceived
Tactical
Strategic
Tactical
Strategic
Actual
Tactical
Strategic
Tactical
Strategic
•
•
•
64% of CIOs believe that their role is strategic
36% of CIOs believe that their role is tactical
56% of CIOs said that a significant part of their job is strategic
planning
N=568
Source: 5
55
CIO PANEL DISCUSSION
Hosted By SIM St. Louis
CIOs Present:
Ellen Watson: St. Louis University
Jim Tom: University of Missouri St. Louis
Andrew D. Orstadt: Washington University
Larry Haffner: Webster University
56
BACKGROUND OF CIO REPRESENTATIVES
•
Ellen Watson:
–
–
–
–
•
Librarian/Cataloger
Professor
Dean of Librarians
Integrated Infrastructure and Content
Jim Tom:
–
–
–
–
Mostly Research Background
Analyst
Chief Application Officer
3 years at UMSL
57
BACKGROUND OF CIO REPRESENTATIVES
•
Andrew D. Orstadt:
–
–
–
•
8 years experience as CIO in construction
Analyst
Hired to organize and save money, worked at
Washington University for 1.5 years
Larry Haffner:
–
–
–
Worked in higher education all of his career
Has worked at Webster for 5 years
His role is anything to do with technology
58
STRUCTURE OF IT DEPARTMENT
•
Ellen Watson, SLU:
–
•
Jim Tom, UMSL:
–
•
80 full time employees, 50 student
workers
Andrew D. Orstadt, Washington U.:
–
•
110 full time employees, 45
decentralized IT workers
140 full time employees, 50-60
student workers for structure,
customer service, and running data
centers
Larry Haffner, Webster:
–
65 full/part-time staff including
specialized faculty, 50 student
workers.
59
JUST SUPPORT?
•
Ellen Watson, SLU:
–
–
–
•
Not as much innovation.
SLU wants to be an early follower, not on the cutting edge.
Buys technology 99% of the time
Jim Tom, UMSL:
–
–
–
Push ourselves to look at innovation, as well as if the “trains
are running on time”.
Encouraged online courses. Use a laddering approach to
encourage use of new technologies.
Bring in professionals from Sysco and Intel to learn about
high performance computing.
60
JUST SUPPORT?

Andrew D. Orstadt, Wash. U.:
 Focus
on progression of lifestyle, organizing and
centralizing for the right reasons.
 Create an environment that can embrace change.

Larry Haffner, Webster U.:
 Has
no research of any kind
 Has more input in the university’s strategic
direction. Ex: maintaining several sites.
61
WHAT MISTAKES HAVE YOU MADE?
•
Larry Haffner, Webster:
–
–
–
•
Ellen Watson, SLU:
–
•
Technology mistakes
Personnel Mistakes, building an effective staff
Political Mistakes: understanding what battles you can’t win
and how to communicate
Governance is a big issue. Managing “who decides”
Jim Tom, UMSL:
–
–
–
Every faculty member thinks they’re an expert
Building a management team that can function
independently
Too much work, not enough people
62
STRATEGIES FOR RECRUITING AND RETAINING
EMPLOYEES:
•
Problems:
–
–
–
•
Some solutions:
–
–
•
Universities cannot compete with industrial salaries
Predominantly have entry level positions
Have to train as if they are going to stay
Organized unsystematic processes to make solutions
routine. People were fixing things differently each time.
Trying to offer flexibility and increase interest, which
has created less structure.
Result: Plan for 5 year maximum
turn-over
63
“USERS OFTEN THINK THEY ARE ENTITLED”
Story from Ellen Watson:
 Listserv was hacked into and taken over late during
the night
 No one on the networking team was answering their
calls and Ellen was forced to shut down the listserv
 Hundreds of angry emails flooded her inbox from
angry users who believed they were entitled to have
the listserv available.
 An issue often faced by CIOs
64
THANK YOU

Any Questions?
65
SOURCES
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Alexander, Steve, “As the door turns,” Computerworld, 1998; vol 32, 8, pp. 73.
Business Editors, “The Changing Role of the Chief Information Officer” Business Wire, p.1, Nov 23, 1998
“Chief Information Officer.” Wikipedia: The Free Encyclopedia. 9 October 2007.
<http://en.wikipedia.org/wiki/ChiefInformationOfficer>
Chris Franks, Director of IT at Spartan Light Metal Products Inc., interviewed in person by Alexandra Bleitz,
September 21, 2007.
CIO Magazine’s “2007 State of the CIO Survey” CXO Media Inc, 2007.
http://www.cio.com/state/stateofcio.pdf, viewed N=568
Dave Finnegan, CIB of Build-A-Bear, interviewed by phone by Matthew Clabaugh, October 4, 2007.
http://library.corporate-ir.net/library/18/182/182478/items/236139/BBW_10K.pdf, viewed on October
18, 2007.
http://www.cio.com/article/25367/Business_Alignment_Find_the_Right_IT_Metrics_, viewed on October
18, 2007.
Jeff Loyett, Director of Management Information Systems of Electric Potter Signal Company, interviewed in
person by Matthew Clabaugh, September 13, 2007.
Jennifer McAdams, “7 Common Obstacles” Computerworld, Vol.4, lss.50, p.40-42, Dec 11, 2006
Kolbasuk McGee, Marianne. “IT’s Gender Gap” InformationWeek. Manhasset: Nov 21, 2005. , Iss. 1065;
pg. 75, 1 pgs
66
SOURCES
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
Levinson M., “CIO and CEO: How to Work with Your Boss” CIO Magazine, Oct 1, 2004.
Luftman J., and Mclean E., “Key Issues for IS Executives,” MIS Quarterly Executives, Vol.
5,2,2006, pp.81-99.
McKenna, Brian, “CIO tenures shorter than their projects,” Computer Weekly, Sutton: Jul 10,
2007. pg. 5, 1 pgs N = 350 companies
PERLMAN, Ellen, “Topside Turnover: CIOs are among the most endangered of species, and
that’s a problem not only for them but also the governments they serve,” Governing,
Congressional Quarterly, April 2007. N = 50+
Preston, Robert, “CEO, CIO Turnover Is Just Part of E-Transformation,” InternetWeek, Iss. 841,
2000, pp. 9.
Prewitt, Edward and Schneider Traylor, Polly Elements of a CIO education October 21, 2002.
Sheila Greco Associates, 2006-2007 “Women in Technology Study”.Jun 6, 2007
Surmacz, Jon, “Turnover is Expensive” CIO.com, June 15, 2004,
http://www.cio.com/article/29175/Turnover_Is_Expensive_ viewed October 18, 2007.
Walsh, Katherine, “Business Alignment: Find the Right IT Metrics,” CIO.com, October 1, 2006.
www.buildabear.com, viewed October 18, 2007.
67
Download