Top cloud leverage technologies enterprise 3479 pdf

FFIRS 11/04/2011 12:11:55 Page FFIRS 11/04/2011 12:11:55 Page ON TOP OF THE CLOUD FFIRS 11/04/2011 12:11:55 Page FFIRS 11/04/2011 12:11:55 Page ON TOP OF THE CLOUD How CIOs Leverage New Technologies to Drive Change and Build Value across the Enterprise HUNTER MULLER John Wiley & Sons, Inc FFIRS 11/04/2011 12:11:55 Page Copyright # 2012 by Hunter Muller All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose No warranty may be created or extended by sales representatives or written sales materials The advice and strategies contained herein may not be suitable for your situation You should consult with a professional where appropriate Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 7622974, outside the United States at (317) 572-3993 or fax (317) 572-4002 Wiley also publishes its books in a variety of electronic formats Some content that appears in print may not be available in electronic books For more information about Wiley products, visit our web site at www.wiley.com Library of Congress Cataloging-in-Publication Data: Muller, Hunter On top of the cloud: how CIOS leverage new technologies to drive change and build value across the enterprise/Hunter Muller p cm Includes index ISBN 978-1-118-06582-2 (hardback); ISBN 978-1-118-21443-5 (ebk); ISBN 978-1-118-21454-1 (ebk); ISBN 978-1-118-21458-9 (ebk) Information technology—Management Technological innovations— Management Cloud computing Chief information officers I Title HD30.2.M8495 2012 2011038803 658 0.0546782—dc23 Printed in the United States of America 10 FFIRS 11/04/2011 12:11:55 Page For Sandra, Chase, and Brice FFIRS 11/04/2011 12:11:55 Page FTOC 11/05/2011 14:21:8 Page CONTENTS Foreword xi Preface xv xxiii Acknowledgments Introduction A New Business Model ‘‘Thoughtfully Progressive’’ Part I: Transformational Leadership Chapter The Rising Tide The CIO as Rock Star Real Stories from Real IT Leaders Learning from Listening More Than Technology The Real Challenge Is Organizational Leadership Is Essential Chapter IT Does Matter Stay Focused on Delivering Value Replacing the Perpetual Pendulum Driving the Innovation Agenda It’s All a Question of Perspective Chapter The Engine of Innovation Bringing Innovation to the Surface Incentivizing Innovation vii xxv xxvii xxviii 9 12 17 20 22 24 28 31 36 39 FTOC 11/05/2011 14:21:8 Page viii Chapter CONTENTS Finding the Right Balance Winds of Change The Third Bucket The Closer Outside versus Inside Articulating the Value of Technology Chapter The Customer-Focused CIO Top Line or Bottom Line? Driving Business Growth The Rapid Enabler Own, Rent, or Both? Multiple Models Also Consider the User Experience Chapter To Cloud or Not to Cloud Fail Fast, Fail Cheap A Skunk Works in the Cloud Weaving the Seamless Tapestry Part II: Driving Change Chapter In Front of the Firewall Avon Calling When the Model Fits Chapter The New Speed of Change Updating the Mental Model Innovation under Pressure The Cloud on Wheels Campaigning in the Cloud Part III: Building Value Chapter 45 49 51 53 55 57 61 65 66 68 72 75 76 79 83 85 87 91 93 100 103 107 115 119 121 122 127 129 Two Sides of the Same Coin 138 A Multiplicity of Clouds 142 Turn of the Tide 146 Translating ‘‘Speeds and Feeds’’ into Cash Flow 152 Pushing the Envelope BLAST 11/14/2011 15:20:0 Page 223 RECOMMENDED READING 223 Mirchandani, Vinnie The New Polymath: Profiles in CompoundTechnology Innovations Hoboken, NJ: John Wiley & Sons, 2010 Muller, Hunter The Transformational CIO: Leadership and Innovation Strategies for IT Executives in a Rapidly Changing World Hoboken, New Jersey: John Wiley & Sons, 2011 Rosenberg, Scott Dreaming in Code New York: Crown Publishers, 2007 Smith, Gregory S Straight to the Top: Becoming a World-Class CIO Hoboken, NJ: John Wiley & Sons, 2006 Trowbridge, Ben Cloud Sourcing the Corporation: Strategies You Can Use, 100 Vendors You Should Know Dallas: Alsbridge, 2011 Tugend, Alina Better by Mistake: The Unexpected Benefits of Being Wrong New York: Riverhead Books, 2011 Watkins, Michael The First 90 Days: Critical Strategies for New Leaders at All Levels Boston: Harvard Business School Press, 2003 Zweifel, Thomas D Culture Clash: Managing the Global HighPerformance Team New York: Select Books, 2003 BLAST 11/14/2011 15:20:0 Page 224 BABOUT01 11/14/2011 15:22:51 Page 225 ABOUT THE AUTHOR Hunter Muller is president and CEO of HMG Strategy LLC, a global IT strategy consulting firm based in Westport, Connecticut Mr Muller has nearly three decades of experience in business strategy consulting His primary focus is IT organization development, leadership, and business alignment His concepts and programs have been used successfully by premier corporations worldwide to improve executive performance, enhance collaboration, elevate the role of IT, and align enterprise strategy across the topmost levels of management He lives in Fairfield, Connecticut, with his wife and their two children For additional information, please contact Hunter directly via e-mail at hunterm@hmgstrategy.com 225 BABOUT01 11/14/2011 15:22:51 Page 226 BABOUT02 11/05/2011 14:13:25 Page 227 ABOUT HMG STRATEGY LLC HMG Strategy LLC is the fastest-growing thought leadership organization dedicated to empowering chief information officers with leadership, management, and technology support and advice through an extensive network of the world’s most successful IT leaders The firm’s unique CIO Executive Leadership Series offers unique event experiences to build relationships with peers and gain the latest insights and best practices for driving increased business value through the use of information technology HMG Strategy events enable IT leaders to leverage the power of an extensive network of more than 10,000 highly talented CIOs and senior executives from multiple sectors of the global economy These events raise thought leadership, knowledge sharing, and networking to the highest levels Additionally, the firm’s partnership with the world’s leading executive search firms provides IT leaders with invaluable insights and opportunities for career advancement For additional information, please visit www.hmgstrategy.com or send an e-mail to hunterm@hmgstrategy.com 227 BABOUT02 11/05/2011 14:13:25 Page 228 BINDEX 11/17/2011 12:50:51 Page 229 INDEX Accenture, 147 Actuarial data, 38 Adduci, Rich, 33–35 Akio Toyoda, 109 Alliances, 111, 115 Amazon, 65 American Customer Satisfaction Index, 40 Amylin Pharmaceuticals, 132, 158 Andersen Consulting, 96 AT&T, 154 Automation, 42 Avande, 147, 149 Avaya, 49 Avnet, 63–64 Avon Products, 100–103 Baez, Ram on, 57–60 Baker Hughes, 173 Bankcard Technologies, 87 Bayer Corporation, 183 Bhusri, Aneel, 105–106 Blake, Mike, 152–154 Blalock, Becky, 39, 40–41, 42–44 Boehringer-Ingelheim, 183 Boeing Company, 53–54 Boeing Commercial Airlines, 53 Boeing Defense, Space & Security, 53 Bonner, Brian, 69–71 Boston Scientific, 33–35, 35 Brock, John, 98 Business-to-business (B2B), 51–52, 64 Business-to-consumer (B2C), 64 BYOD (bring your own device), 48 Cannibalization, 65 Capital Markets Technology, 87 Carr, Nicholas, 19–20, 73 Chancellor, Trae, 163–166 Chevron, 12 229 BINDEX 11/17/2011 230 12:50:51 Page 230 INDEX Chief executive officer (CEO) chief information officer (CIO) and, 96, 98, 177, 186 expectations of, 21, 183, 185 objectives of, 21 Chief information officer (CIO) challenges of, 22, 24–25, 34, 90 cloud computing and, 27, 75, 126, 167 commoditization of, 57 credibility and, 14–15 customer management, 51 efficiency of, 47, 49, 50, 118 evolution of, 114 expectations of, 50–52, 68–70, 96–97 importance of, 25 information technology (IT) and, 6, 7, 13–14, 27 innovation and, 36, 42–44, 47, 49, 51, 118 integration management, 48 leadership in, 13, 30, 35, 49, 116–117, 164–165, 171, 175, 185–186 managing change, 47–48 objectives of, 22 perspectives of, 29–30 priorities of, 22 qualities of, 9, 42, 56–58, 60, 96–97, 121, 172 requirements of, 162–163 resource management, 33– 35 responsibilities of, 5, 7, 13– 14, 19–22, 28, 30, 36, 41, 48, 49, 172, 182–188 risk management and, 35 roles of, 5–6, 6, 12, 19, 40, 50, 52, 54, 56, 57, 66, 114, 118, 162, 179–180, 185–186 service levels and, 30, 147, 166–168 status of, strategic partnerships and, 27–28 transformational CIO, 35, 51, 54, 59, 67, 67–69, 71, 111, 164, 186 transparency and, 15 as ‘‘value enabler,’’ 50 vertical integration and, 27–28 vision of, 41 balance of efficiency, 47– 60 due diligence of, 163–172 pragmatism of, 26 BINDEX 11/17/2011 12:50:51 Page 231 INDEX CIO Insight magazine, 111 CIO magazine, 111, 184 Clinton, Hillary, 76 Cloud computing architecture of, 10 assumptions of, 174 benefits of, 12, 76–78, 124– 125, 141, 167, 180–182, 184, 186–188 capabilities of, 106 chief executive officer (CEO) and, 177 chief information officer (CIO) and, 27, 75, 126, 176 cloud migration, 81, 158, 172 ‘‘cloudonomics,’’ 82 community clouds, 144–145 concerns of, 29, 166–167 costs of, 105–106 disaster recovery plans, 168, 184–185 ecosystems, 27, 99, 123, 145 emergence of, 81 evolution of, 140, 187–188 expectations of, 104, 152 external analysis of, 168–169, 170 231 governance of, 162–163, 167 human resources information system (HRIS), 137 hybrid clouds, 144–145 hybrid clouds and, 184–185 implementation of, 138–140 importance of, 58 information technology (IT) and, 11–12, 27, 73, 75, 83, 122, 134–135, 141–142, 148–149, 157, 164, 185, 187 innovation and, 86, 141 licensing and, 172 new-product development and, 86 nomenclature of, 174 operating costs of, 171 private clouds, 75, 142, 144–145, 150–151, 166, 185 private information and, 11 public clouds, 11, 72–77, 144–145, 150–151, 184, 185 regulations and, 138 resource management and, 174 roles of, 78 BINDEX 11/17/2011 232 12:50:51 Page 232 INDEX Cloud computing (Continued ) scalability of, 123, 139, 158, 169 security and, 29, 146, 154, 166, 174 service level agreements (SLA), 168 service request management, 158 solutions and, 20 strategies of, 81, 133–135, 151, 160–161, 170, 172, 174, 180, 188 technology of, 10, 21 Toyota Motor Corporation and, 110–111 trends in, 170 types of, 142–145 valuation of, 72 vendors, 19, 123–124 ‘‘Z cloud’’ private cloud, 75 Cloud Computing and SOA Convergence in Your Enterprise, 127, 144 Cloudonomics, 72 Coca-Cola Enterprises, 95–98 Colgate-Palmolive, 96 Colisto, Nicholas, 183–185, 185 Collins, Jim, 71 Computerworld, 184, 41, 43, 111 Compuware Corporation, 28–29 Cooper, Barbra, 109–117, 119–122 Crawford, Tim, 66–67 CRM, 123, 149, 184 CSC, 154 Customer management process, 51 Cyber security, 40 Data security, 52 Davis, Martin, 87–90 Disaster recovery plans, 168, 184–185 Disney, 56 Diversified Search, 166 Dockers, 123 Duffield, Dave, 105–106 Duke University, 69 E-commerce, 63–64, 77, 125 Ecosystems, 27, 99, 123, 145 EM-PACT, 43 Enterprise data centers, 73, 137 Enterprise resource planning (ERP), 5, 5–6, 96, 116, 123, 125 implementation of, 180–182 BINDEX 11/17/2011 12:50:51 Page 233 INDEX Facebook, 26, 97, 110, 123, 125–126 Fellow of the International Women’s Forum Leadership Foundation, 41 First Data Corp, 152 Flextronics, 103 Fortune, 40 Fortune 500, 22, 29, 100, 179 Fortune Global 500, 103 Framework selection, 157 ‘‘Free time compression,’’ 76 Freeport-McMoRan Copper & Gold, 179 FUD (fear, uncertainty, and doubt), 171 General Motors, 56 Georgia CIO Leadership Association, 41 Georgia Power, 41 Global economy, 7, 41, 66, 134, 187 Global markets, 26, 28, 37, 54, 77, 117 Global recession, 37 Global Upstream, 12 Gold, Stephen, 49 Good to Great, 71 Google, 28, 63, 77, 123, 143 233 Hackney, Allan, 36–39 Hammonds, Kim, 53–54 Hancock, John, 36–39 Hartman, Tyson, 149–150 Harvard Business Review, 19, 84 Harvard University, 40 Hedgehog Concept, 71 Herlihy, Donagh, 100–103 Hewlett-Packard, 72 HGM Strategy, Hill, John, 138–140, 157, 162 Hillman, Mark, 28–30 Hovnanian Enterprises, Inc, 183, 184 Human resources information system (HRIS), 136–137 Hyatt Hotels Corp, 152–154 Hyperion Solutions, 183 IBM, 81–83, 99, 145–147 IBM Research, 142 Information Services Architecture and Administration, 87 Information technology (IT) architecture of, 56 budget model, 160 challenges of, 90, 113 BINDEX 11/17/2011 234 12:50:51 Page 234 INDEX Information technology (IT) (Continued ) cloud computing and, 11–12, 27, 73, 75, 83, 122, 134–135, 141, 148–149, 154, 157, 158, 164, 169–172, 185, 187 commoditization of, 19, 124 communication within, 57 consolidation of, 148–149 creativity within, 37–38 cyclical nature of, 22–24 developers, 11 disaster recovery plans, 168, 184–185 ecosystems, 27, 99 efficiency of, 22–24, 42, 141, 148–149, 153 enterprise data centers and, 73 evolution of, 89, 95, 114–117, 175–176, 187–188 expectations of, 60, 96 governance of, 167, 183–184 growth strategies and, 23 hybrid clouds and, 145 importance of, 25 innovation and, 33–35, 59, 120–121, 136, 141 integration management, 98 leadership in, 30, 33, 112, 118–119, 169–172, 179 nature of, 50–51 objectives of, 10, 24, 30 organization of, 10 productivity and, 60 refresh cycle, 48 requirements of, 65 resource management, 157, 160–161 roles of, 7, 54, 59 security and, 22–24, 29, 154 strategies of, 27–28, 40, 49, 67–68, 160–161, 167 transformational strategy for, 67–68 vendors and, 11, 99 vertical integration and, 27–28 consumerization of, 26 due diligence regarding, 163–172 Infrastructure-as-a-service (IaaS), 20, 122, 143, 149–150, 169 Innovation cloud computing and, 86, 141–142 BINDEX 11/17/2011 12:50:51 Page 235 INDEX culture of, 39, 42–44 importance of, 51 incentivization of, 42–44, 44 information technology (IT) and, 59, 120–121, 136 operational efficiency, 59 processes, 115 as strategy, 117–119 Integration, challenges of, 87 Intellectual property, 44 iPad, 11 iPhone, 52 Java, 105 Johnson, Clarence ‘‘Kelly’’ L., 85 Kaiser Permanente, 152 Kaizen, 117 Kimberly-Clark, 57, 60 Konica-Minolta Business Solutions USA, 66 Korn/Ferry International, 185 Krishnan, M S., 133 Krotowski, Randy, 12–15 Leadership Atlanta, 40 Leadership Georgia, 40 Legacy systems, Leng, Tony, 166, 169–172 235 Lentz, James E., 119 Levi Strauss & Co., 24, 25, 122, 123, 125–126 Life-cycle management, 23, 24, 157 Linthicum, David S., 127, 143–144 Lockheed Aircraft Corporation, 85 Lockheed Martin’s Advanced Development Program, 85 Market perception, 56 Marketing strategies, 63 McGraw-Hill Publishing, 111 McKesson Corporation, 22 McNamara, Mike, 105–106 Medco, 49 Mercer University, 40 Merck, 49 mergers, 87 Microsoft, 56, 99, 111, 147 Naval Postgraduate School, 24 NaviSite, 154 Netflix, 75 New-product development process, 84–85, 86 NFL, 123 BINDEX 11/17/2011 12:50:51 Page 236 236 Nielsen, Tod, 9–12 Nielsen BuzzMetrics, 123 INDEX Risk management, 35 Scott, Tony, 55–56 Service level agreements (SLA), 168 Service request management, 139, 142, 147, 158, 163 Sezer, Esat, 95–100 Siemens, 138 Skunk Works, 85–86 Smart Grid, 42 Smoley, Dave, 103–106 SOA, 95, 158, 202 Social networking, 109, 110 Software-as-a-service (SaaS), 20, 75–76, 104, 122, 135, 143, 149–150, 157, 169, 184 Southern Company, 39, 40, 41, 42, 44 Spratt, Randy, 22–24, 47, 69 State University of West Georgia, 40 Sterling Winthrop, 183 Strategic partnerships, 27–28 Super Bowl, 123 S&P 500, 28 Salesforce.com, 101, 109, 110–111, 115, 121, 163–164 Tablets, 35, 37–38, 48–49, 60, 77, 110, 172 Telephony, 40 Texas Instruments, 69, 70 Odinet, Bert, 179–182, 185 On Top of the Cloud, 8–9 Oracle, 154 Peck, Tom, 24–28, 122–126 Pepsi-Cola, 183 Phelps Dodge, 179 Phillips, Steve, 63, 65 Phillpott, Steve, 132–138, 158–161 Platform-as-a-service (PaaS), 20, 122, 143, 150, 164, 169 Polansky, Mark, 185–186 Prahalad, C K., 133 Priceline.com, 183 Problem solving, 39 Product development cycle, 112 Productivity frontier, 48–49 Project Launchpad, 37–39 BINDEX 11/17/2011 12:50:51 Page 237 INDEX 237 The New Age of Innovation: Driving Cocreated Value through Global Networks, 133 The Transformational CIO, 7, 8, 83, 106 Time Warner Cable, 154 Toole, Pat, 81–83, 161 Toyota Media Service Co., 111 Toyota Motor Corporation, 109, 117, 119, 121 Toyota Motor Sales USA, 119 Toyota North America, 109 Triplett, Clifton, 173–177 Twitter, 26, 110, 123 Vendors, 58–59, 123, 165–166, 182–183 cloud computing and, 123–124 as potential partners, 99 Vertical integration, 27–28 Visual Basic, 105 VMware, U.K Ministry of Defense, 53 University of Chicago, 152 University of Toyota, 109 U.S Military Academy at West Point, 173 U.S Naval Academy, 24, 132 XP-80 Shooting Star, 86 Wachovia, 87 Washington Post, 76 web services infrastructure, 158 Weinman, Joe, 72–78 Wells Fargo, 87, 89 Whirlpool, 96 Workday, 105–106, 136, 143 YouTube, 123 ‘‘Z cloud’’ private clouds, 75 Ziff Davis, 111 Zynga, 75 ... Page ON TOP OF THE CLOUD FFIRS 11/04/2011 12:11:55 Page FFIRS 11/04/2011 12:11:55 Page ON TOP OF THE CLOUD How CIOs Leverage New Technologies to Drive Change and Build Value across the Enterprise. .. Cataloging-in-Publication Data: Muller, Hunter On top of the cloud: how CIOS leverage new technologies to drive change and build value across the enterprise/ Hunter Muller p cm Includes index ISBN... Internally, we leverage cloud as an extension of existing strategy From a technology perspective, it’s not dramatically new It’s grounded in a lot of the same technologies that we already use I see cloud