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CIO Best Practices: Enabling Strategic Value With Information Technology, 2nd Edition

CIO Best Practices: Enabling Strategic Value With Information Technology, 2nd Edition

Joe Stenzel (Editor), Gary Cokins, Karl D. Schubert, Michael H. Hugos, Randy Betancourt, Alyssa Farrell, Bill Flemming, Jonathan Hujsak

ISBN: 978-0-470-91255-3

Sep 2010

368 pages




"CIOs are challenged with bringing technology into alignment with business strategy. In order to be successful, today's CIO must translate the technical into business terms and to deliver solutions to the business to improve processes and end products. CIO Best Practices: Enabling Strategic Value with Information Technology provides a complete guide for the strategic CIO to help in these challenges. This book is a great tool for all CIOs."
—Ellen Barry, CIO, Metropolitan Pier and Exposition Authority

"The demand for value from technology investment will only increase in the future, and major business trends like globalization, consolidation, optimization, and consumerism demand that IT leaders find ways to engineer high performance, agility, lean, and innovation into the way businesses work and compete. Enlightened CIOs will want to read this book and ensure they understand the game plan for the future."
—Patrick E. Moroney, President, The Barnier Group LLC

"A terrific primer for technology professionals and a must-read for anyone aspiring to be a CIO or technology leader. This book focuses on the most relevant topics business and technology must grapple with including strategy development, strategic alignment and value creation, and the specific roles the CIO and IT must play. The book captures the collective wisdom of an impressive list of influential contributing authors who precisely frame and address the key issues CIOs must deal with today and for the foreseeable future."
—Stephen Fugale, Chief Information Officer, Villanova University, and former senior vice president and CIO, CIGNA Group Insurance

"CIO Best Practices captures many of the things we have learned during our eight years of providing product outsourcing to U.S. companies. I recommend this book to anyone looking to quickly understand the decisions one will need to deal with before outsourcing."
—Anupam Bhide, PhD, CEO, Calsoft

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Preface ix

About the Contributing Authors xix

Chapter 1 Freedom with Fences: Robert Stephens Discusses CIO Leadership and IT Innovation 1

The CIO Leadership Paradox 1

The Fences 5

Rules and Innovative Augmentation 13

The CIO and Enterprise Culture 16

Radical Transparency 20

Proactive Risk Practices 23

The CIO and the Customer 26

The IT Organization 34

Notes 39

Chapter 2 Why Does IT Behave the Way It Does? 41

Making Sense of IT Business Management 41

Putting the Pieces Together 63

Changing the Way IT Behaves 86

Notes 97

Chapter 3 Cloud Computing and the New Economics of Business 99

A Combination of Technologies Create Cloud Computing 100

Some Working Defi nitions of Cloud Computing 101

Cloud Computing Has Three Component Layers 102

Implications of the Transition to Cloud Computing 104

A Business Strategy Based on Agility 108

Using the Cloud for Business Advantage 111

Business Applications with the Greatest Potential 112

Cloud Risk Considerations 115

Cloud Cost Considerations 118

Case Study: Selling ""Designer Chocolates"" 120

Desirable Characteristics of New IT Architecture 123

Public Clouds, Private Clouds, and Hybrid Clouds 124

Issues to Consider When Thinking about Private Clouds 128

The Cloud is a Platform for Managing Business Processes 131

Automate Routine Processes, Focus People on Handling Exceptions 134

Four Technologies Enable Responsive Business Processes 136

Notes 139

Chapter 4 Leading with Green: Expanding the CIO's Role in Eco-Effi cient Information Technology Adoption 141

What Is Green IT? 144

Who Cares about Green IT? 146

Green IT: A Quickly Maturing Management Discipline 147

Common Challenges Presented by Green 159

Role of Public Policy 165

Role of the CIO 167

Risks and Common Mistakes to Avoid 171

Summary 173

Notes 174

Chapter 5 Sustainability, Technology, and Economic Pragmatism: A View into the Future 177

Sustainability 177

Globalization, Decentralization, and Sustainability 179

Future Opportunities for Improving Global IT Sustainability 187

Mobility 203

Ubiquity: Pervasive Computing, Ubiquitous Sensors, and Ad Hoc Communications 212

Energy: Smart Buildings, Renewables, and Campus Sustainability 215

Physical Security and Information Assurance 217

Integrating Sustainability into Strategic Planning 220

The Future Lies before Us 232

Notes 233

Chapter 6 How to Measure and Manage Customer Value and Customer Profi tability 237

The Rising Need to Focus on Customers 238

A Foundation for Customer Portfolio Management 245

Distinguishing High from Low Economic Customer Value 255

Measuring Customer Lifetime Value 262

Balancing Shareholder Value with Customer Value 269

The CFO and CIO Must Shift Emphasis 275

Appendix 6A: Activity-Based Costing is a Cost Reassignment Network 280

Notes 282

Chapter 7 Evolution of Networks into Networking 285

Evolution of Networks into Networking: Computational, Data, Business, and Personal 285

Advances in Computational and Data Networks 289

Advances in Storage and Data Networks 291

Business Impacts of Business Networking 295

Business Impacts of Social Networking 299

Virtual Worlds: Second Life 302

Democratization and Socialization of Information 306

The Wisdom of Crowds? 309

The New Reality 311

Adapting to the New Reality 315

Role of IS/IT in Adapting to the New Reality 317

Notes 320

About the Editor 327

Index 329