CIOs mull how to innovate and tighten belts simultaneously

Run IT like a business, says CIO Symposium panellist

CIOs face a common set of thorny challenges these days, namely the pressure to deliver innovations even as they seek to cut or hold down spending, according to an array of senior IT executives speaking at the MIT Sloan CIO Symposium in Cambridge, Massachusetts.
 
"IT is a business within a business," said Tom Sanzone, senior vice president at Booz Allen Hamilton and a former CIO at Credit Suisse, during a panel discussion. "It should be run that way."

"When you look at IT services you say, can I deliver these services at my scale, at a price the market can bear," Sanzone added.

But at the same time, CIOs can no longer sacrifice quality, other panellists said.
 
"We have accepted a very poor quality of product for a very long time, and that has been the major filter through which the business perceives us," said Steven John, strategic CIO at cloud enterprise resource planning (ERP) software vendor Workday. "We need to change that."
 
Global systems integrator Accenture fits its IT spending into "two buckets," one for operating expenses and another for investments in IT, said CIO Frank Modruson. Each year, his teams are urged to find ways to lower operating costs and move the money over to investments, according to Modruson.
 
There are some likely targets, he added. "E-mail costs, every year they should go down."
 
But the company is not afraid to spend big if there is enough of a payoff, according to Modruson.
 
For one thing, Accenture "blew up its whole network" in 2007, consolidating and modernising the system. While the job cost $100 million (€79 million), it paid for itself in just a few years, he said. "Now we’re getting ready to do it again."
 
Those improvements are laying the groundwork for other innovations at Accenture, particularly in communications.
 
"Nothing really important happens in e-mail," Modruson said. "We’ve actually moved a lot more to video to get that [personal] interaction. My remote meetings are on video now."
 
"Desktop video has gotten pretty cheap," he added. "It costs us less than a penny a minute. It’s next to free. It’s going to show up everywhere."
 
Sometimes CIOs cannot persuade business executives to fund what may be worthwhile projects. If that happens, those eager to stay the course have some options, according to Bill Krivoshik, senior vice president and CIO at Time Warner.
 
"You’re in a position of fiscal responsibility," he said. "You need to align your goals with the company’s. You’re not going to hide things. But there are alternative ways to fund it."
 
CIOs should look to get a proof-of-concept exercise off the ground for the idea, Krivoshik said. If it works, then company leadership can be persuaded to fund it, he said. "If not, then you only spent a little bit of money."
 
But Time Warner is also making a fundamental change to its IT operations. The company is now in the process of migrating its human-resources software operations to Workday’s HR module companywide, Krivoshik said in an interview after the panel discussion. Workday will replace a wide variety of HR systems, he said.
 
The first implementations will be done in the Time Inc. division and corporate headquarters this year, with other business units coming later, he said. The project is scheduled for completion in early 2014, according to Krivoshik.
 
Workday is hoping to also lure large multinational conglomerates like Time Warner to its financials software module. Krivoshik isn’t ready to commit to that, though.
 
"We’ll look at it," he said. "We only want to focus on one big ERP [area] at a time."
 
That sense of restraint is reflected in how Krivoshik views the role of today’s CIO.
 
"I don’t think it’s changing," he said. "I think the good CIOs have been ones who use technology to help the business. It’s just that the tools in the toolkit have changed. The underlying tenet, to help grow the top line, is the same."

 

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placeholder: '+44 0000 000000', helpText: 'Include the JE country code +44 before the phone number', }, { countryCode: 'IM', placeholder: '+44 0000 000000', helpText: 'Include the IM country code +44 before the phone number', }, { countryCode: 'GG', placeholder: '+44 0000 000000', helpText: 'Include the GG country code +44 before the phone number', }, { countryCode: 'AL', placeholder: '+355 00 000 0000', helpText: 'Përfshini kodin e vendit AL +355 para numrit të telefonit', }, { countryCode: 'SM', placeholder: '+378 0000 000000', helpText: 'Includere il prefisso internazionale SM +378 prima del numero di telefono', }, { countryCode: 'FO', placeholder: '+298 000000', helpText: 'Inkluder FO landekode +298 før telefonnummeret', }, { countryCode: 'MT', placeholder: '+356 0000 0000', helpText: 'Include the MT country code +356 before the phone number', }, { countryCode: 'LI', placeholder: '+423 000 0000', helpText: 'Fügen Sie vor der Telefonnummer die LI-Ländervorwahl +423 ein', }, { countryCode: 'GI', placeholder: '+350 000 00000', helpText: 'Include the GI country code +350 before the phone number', }, { countryCode: 'MD', placeholder: '+373 00 000 000', helpText: 'Includeți codul de țară MD +373 înaintea numărului de telefon', }, { countryCode: 'HU', placeholder: '+36 00 000 0000', helpText: 'A telefonszám előtt adja meg a HU országkódot +36', }, { countryCode: 'NZ', placeholder: '+64 00 000 0000', helpText: 'Include the NZ country code +64 before the phone number', }, { countryCode: 'ME', placeholder: '+382 00 000 000', helpText: 'Uključite ME pozivni broj države +382 prije telefonskog broja', }, ]; if (!countryCode || typeof countryCode !== 'string') { return mockPlaceholders[0].helpText; } const selectedHelpText = mockPlaceholders.find(function(item) { return item && item.countryCode === countryCode; }); return selectedHelpText ? selectedHelpText.helpText : mockPlaceholders[0].helpText; } function setDefaultHelpText(countryCode) { const helpTextSpan = 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: false; var shouldAppendCountryCode = smsNotRequiredRemoveCountryCodeEnabled ? isRequired : true; var phoneInput = document.querySelector('#mce-' + fieldName); if (phoneInput && defaultProgram.countryCallingCode && shouldAppendCountryCode) { phoneInput.value = defaultProgram.countryCallingCode; } displayFlag?.addEventListener('click', function(e) { dropdown.focus(); }); dropdown?.addEventListener('change', function() { const selectedCountry = this.value; if (!selectedCountry || typeof selectedCountry !== 'string') { return; } const flagSpan = displayFlag?.querySelector('#flag-emoji-' + fieldName); if (flagSpan) { flagSpan.textContent = getCountryUnicodeFlag(selectedCountry); flagSpan.setAttribute('aria-label', sanitizeHtml(selectedCountry) + ' flag'); } const selectedProgram = window.MC?.smsPhoneData?.programs.find(function(program) { return program && program.countryCode === selectedCountry; }); var smsNotRequiredRemoveCountryCodeEnabled = true; var smsField = Object.values({"EMAIL":{"name":"EMAIL","label":"Email Address","helper_text":"","type":"email","required":true,"audience_field_name":"Email Address","merge_id":0,"help_text_enabled":false,"enabled":true,"order":0,"field_type":"merge"},"FNAME":{"name":"FNAME","label":"First Name","helper_text":"","type":"text","required":false,"audience_field_name":"First Name","enabled":false,"order":null,"field_type":"merge","merge_id":1},"MMERGE2":{"name":"MMERGE2","label":"Second Name","helper_text":"","type":"text","required":false,"audience_field_name":"Second Name","enabled":false,"order":null,"field_type":"merge","merge_id":2},"MMERGE3":{"name":"MMERGE3","label":"Company Name","helper_text":"","type":"text","required":false,"audience_field_name":"Company Name","enabled":false,"order":null,"field_type":"merge","merge_id":3},"MMERGE4":{"name":"MMERGE4","label":"Job Title","helper_text":"","type":"text","required":false,"audience_field_name":"Job 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fieldName); updateCountryCodeInstruction(selectedCountry, fieldName); }); } document.addEventListener('DOMContentLoaded', function() { const smsPhoneFields = document.querySelectorAll('[id^="country-select-"]'); smsPhoneFields.forEach(function(dropdown) { const fieldName = dropdown?.id.replace('country-select-', ''); initializeSmsPhoneDropdown(fieldName); }); });

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