com ClO Trends #3 Content CIO Trends #3 IT Leadership best practices for ClO, CTO and CDOcws ComputerWeeklycom ClO Trends #3 Content CAML CLLLLILLLLLLLALLLLALLLLLLLLL LALLLLLLALALLLILILLLLALLLALALLLLLLILULLLALLALLLLLLLLLLLLLLLLALALALLLLLDLLLALALAALLD Inthise-guide In this e-guide: nD youhaveuhat takes Computer Weekly talks to more IT leaders than any other bea grat C102 publication, and our reporters gather in-depth insights into the challenges facing ClOs, CTOsand CDOs. This guide offers a Nearly a quarter of board- collection of our most popular articles for IT leaders during the ee anaes oes last part of 2016, looking at what it takes to be a great CIO and how to get the most out of your IT budget. We speak to ARM Salary survey shows IT CEO Simon Segars about an uncertain future post-Brexit and managers command big the importance of loT security, and examine the results of the bonuses annual Salary Survey. Budget busters: Three ways We also discover that although technology continue to play a eegoee uns digital critical role in business and government, a survey also found that a quarter of UK board level execs don't see the value of the tel opportu or tech-readthrough the selection of articles here to find out Clos how your peers are tackling both opportunities and challenges, delivering the benefits of digital technology. _Uktech5 interviw: ARM Holdings CEO Simon Segars Lis Evenstad, management editor Paget 40cws ComputerWeeklycom ClO Trends #3 Content CAML CLLLLILLLLLLLALLLLALLLLLLLLL LALLLLLLALALLLILILLLLALLLALALLLLLLILULLLALLALLLLLLLLLLLLLLLLALALALLLLLDLLLALALAALLD Inthise-ouide /\ Do you have what it takes to bea great 1 Do,you have what it takes to clo? a great C107 Bill Goodwin,premium contenteditor Neatly 2 quarter of board Nesiy sequel s ‘What sort of personality do you need to be a great chief information officer? level exees struggle to see volue of eon ‘You might think being competitive, outgoing, quick to adapt to technology and having strong people skills will turn you into a great ClO. But you would Salary survey shows IT bbe wrong, managers command big bonuses Deloitte has interviewed and surveyed 1,200 ClOs around the ‘world, analysing their personality types, working style and the way they 1K Budget busters: Three ways relate with people. for C10s to fund digital initiatives It shows that when it comes to being a great CIO, i's not the traits that CIOs start out with that make a difference. [ie satalopportunly (or How their role is developedis far more important, sald Mark Lili, global CIO clos programme leader at Deloitte. h_UKtechs0 interview: ARM “The data shows that, irrespective of geography, industry, size of Holdings CEO Simon Segars ‘organisation and what type of CIO you are, here is no significant differenceComputerWeekIy.com ClO Trends #3 Content CAML Inthise-guide 1 Doyou have what it takes to bea great C10? Neatly 2 quarter of board level execs struggle to see value of tech Salary survey shows IT managers command big bonuses 1K Budget busters: Three ways for C10s to fund digital initiatives The digital opportunity for Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars Pageot40 around personal style and working style. Those do not drive your success,” he said. In other words, any competent CIO has the potential to become an influential business leader if they are smart about building relationships with their peers, hire the right team and build the right technical capabilities. ‘The digital opportunity With digital technology now a boarcHevel priority for nearly every organisation, CIOs of whatever type have an opportunity to play a leadership role that can change the direction of a company. Look at what Airbnibhas done for accommodation, or what Uber has done to the way people order taxis, said Lille. "People talk about Uber everything, It's not just a company, it’s a concept.” Itis equally clear that if CIOs do not take leadership of digital technology, ‘someone else in the organisation will. And it is not only the trend for ‘companies to appoint chief digital officers that ClOs need to worry about. Chief marketing officers are using web and mobile technologies to reach their customers in new ways. Chief operating officers are eyeing the internet of things (loT) to improve their supply chains, and chief financial officers are seeing the potential of data analytics technology.ComputerWeekIy.com ClO Trends #3 cws Content CAML Inthise-guide 1 Doyou have what it takes to bea great C10? Neary a quarter of boarce level execs struggle to see value of tech Salary survey shows IT managers command big bonuses Budget busters: Tree ways for ClOs to fund digital initiatives The digital opportunity for Cl0s Uktechs0 interview: ARM Holdings CEO Simon Segars Paget 40 covet 2 (® oes No wonder, then, that some IT suppliers are now bypassing the IT department and. talking directly with chief executives. “The more important constituency are CEOs,” rather than CIOs,” said Aneel Bhusri, CEO of cloud human resources (HR) and financial services ‘company Workday. The best response for CIOs isnot to ‘erack down on deployment of IT outside the organisation — known as shadow IT— but to support it” said Lili. “Then, at least, the IT department wil be aware of the technology other parts of the business are deploying. "That way, you ‘avoid the risks around architecture mayhem” Digital icebergs Much of what makes up digital technology lies beneath the surface, out of sight of the rest of the C-suite, andComputerWeekIy.com ClO Trends #3 Content CAML Inthise-guide 1 Doyou have what it takes to bea great C10? Neatly 2 quarter of board level exeos struggle to see value of tech Salary survey shows IT managers command big bonuses 1K Budget busters: Three ways for C10s to fund digital initiatives The digital opportunity for Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars firmly within the realm of the CIO. This is a concept Deloitte calls “the digital iceberg’. More than anyone in the company, the CIO has a complete picture of the potential of digital technology, the IT systems that will make it possible and the changes companies need to make to turn it to their advantage. Digital technology is rooted in more than edgy digital solutions, said Deloitte, It requires modernising legacy IT systems, simplifying and consolidating IT infrastructure, and investments in cyber security, data and analytics, and ‘emerging technologies. “if you are a CIO, you have a much broader way of looking at the world, which encompasses analytics, the internet of things, augmented reality, virtual realty, robotics, cloud and cyber security,” said Lilli (ClOs can use digital technology internally, improving collaboration and the efficiency of organisations. Most importantly, it can help comparies interact, with their customers. “ClOs should absolutely focus on customer experience and get much closer to marketing,” he said. “You need to embrace that from a customer insight perspective, customer intimacy and how you serve your customers in a ‘multichannel way.”ComputerWeekIy.com ClO Trends #3 Content CAML Inthise-guide 1 Doyou have what it takes to bea great C10? Neatly 2 quarter of board level execs struggle to see value of tech Salary survey shows IT managers command big bonuses 1K Budget busters: Three ways for C10s to fund digital initiatives The digital opportunity for Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars Pageot40 The CIO t ity But ClOs need to be adaptable too. Deloitte has identified three roles that ClOs will need to adopt during their careers. ‘Trusted operators spend more of their time developing reliable, cost- effective infrastructure, Change instigators take the lead on business transformation and change initiatives, Business co-creators focus on using technology to drive business strategy, and can make some dramatic business changes. Neither role is more important than the other. All three types of CIO require the same core skills to be able to run and maintain technology, understand its capabilities and act as a change agent for the business. Which CIO you are is a matter of which skills you emphasise and how you ‘spend your time. CIOs will need to move seamlessly from one role to another as the needs of their organisation change. Lillie advises CIOs of whatever type to work with their CEO, to develop new markets, new products and new ways of doing things. ‘Customers are the top priority for ClOs. ‘The move towards digital technology is reflected in the priorities for CIOs over the next 12 months.ComputerWeekIy.com ClO Trends #3 Content CAML Inthise-guide vhav great C10? hati takes t ya quarter o execs strug 1N- Salary survey show managers command big @ coroner © om » Over half of CIOs listed their company’s customers as their top strategy priority, which is up by 12% from 2015. Thatis followed by growth, performance, reducing costs and boosting innovation “Itis interesting to see customers, growth and innovation on the top line, rather than cost. That says quite clearly that when the business is focused ‘on growth and performance, IT needs to be focused on that agenda,” said Lilie.CAML ComputerWeekIy.com Inthise-guide Do you have what it takes to bea great C10? Neary a quarter of boar level exeos struggle to see value of tech ‘Salary survey shows IT managers command big bonuses Budget busters: Tree ways for C10s to fund digital initiatives The digital opportunity for Glos Uktechs0 interview: ARM Holdings CEO Simon Segars Pageot40 ClO Trends #3 Content ‘Over half of CIOs expect their budgets to rise over the next 12 months, as, the drive to digital continues. ‘They are planning to hire staff with the skils to provide their customers with digital services. They include people with skill in data analytics, who, in the past, may have been more at home in the marketing department than the IT department. “Technology is so fundamental to all aspects of all business, organisations realise they have to invest in it” says Lilie. ‘The CIO skills gap and how to bridge it Nevertheless, ClOs recognise that there is a gap between the competencies they have and the competencies they need in order to make a difference to their organisations. ‘They identified their biggest deficits in customer and digital experience and analytics. Many felt they were underinvesting in emerging technologies, and nearly a third believed their IT departments were below average in digital skills, Most importantly, ClOs recognised the need to build stronger personal relationships with other members of the management team.ComputerWeekIy.com Inthise-guide Do you have what it takes to a great C107 ClO Trends #3 repabates gaps Svea I Neary a quarter of boar level execs struggle to see value of tech ‘Salary survey shows IT managers command big bonuses Budget busters: Tree ways for C10s to fund digital initiatives The digital opportunity for Glos Uktechs0 interview: ARM Holdings CEO Simon Segars fe capainy envy gah ome Seaepe see @ west “bob bk bd cws Content CAML “The leading ClOs are the ones who understand this. They invest in relationships across the business,” said Lilie. It means talking to the other executives ‘about the topics that interest them, rather than the topics that interest the CIO. That way, if the supplier goes directly to the CEO, the CEO will be sure to getthe CIO in the meeting, CIOs who succeed in winning the confidence of their co-executives can help their organisations drive innovation by investing in digital hubs, or technology incubators that can support startup companies. They can also work collaboratively with networks of innovative technology suppliers to generate new ideas. Nevertheless, its important to avoid losing over the fact that many CIOs willComputerWeekIy.com ClO Trends #3 cws Content CAML Inthise-guide 1 Doyou have what it takes to bea great C10? Neatly 2 quarter of board level execs struggle to see value of tech Salary survey shows IT managers command big bonuses 1K Budget busters: Three ways for C10s to fund digital initiatives The digital opportunity for Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars Paget 40 need to reduce costs and make the business more efficient as top priorities. If the company does not have stable infrastructure, CIOs need to put that in place before they can start innovating with digital technology. Keeping up with technology Technology is changing so quickly that traditional IT departments simply ‘cannot keep up. One answer is two-speed IT - one IT team to deal with agile, urgent projects, and a second team to deal with the longer, more ‘complex and slower IT projects. ‘Another is adaptive IT, where teams of IT professionals adapt their speed of ‘working to the needs of the project, deciding whether speed or reliability is, more important. “There is a strong desire for business to move faster and be more agile, and ‘need and opportunity for CIOs to do things faster,” said Lille ‘The research shows the aspiration for many CIOs is to move from being a trusted operator to a business co-creator and, on the way, to leave behind a lasting legacy or thelr organisations. “You can develop your broader IT capabilities through having talent and building IT capabllties around you, and you can develop your leadership capabilities over time,” he said.cws ComputerWeeklycom ClO Trends #3 Content CAML ae New industries are emerging where digital technology is at the forefront, and Inthise-guide that will accelerate the changing role of the CIO. IT leaders need to surround — themselves with people who can work quickly, in an agile way, to help 1 Doyou have watt takes to ‘companies disrupt their own business models. bea great C10? a “You can control your destiny here,” said Lille. “You are not born with CIO. Nearly a quarter of board personality traits.” ® level exocs stugie to see WALILLALALALLLILILILLILLLALALLLLLLOLIAALLALLLLLLLILILILLLLLLALALLLLLLOOLAOLLLALALLDY Next article Salary survey shows IT managers command big bonuses Budget busters: Tree ways for ClOs to fund digital initiatives The digital opportunity for Cl0s Uktechs0 interview: ARM Holdings CEO Simon Segars Page tot 40ComputerWeekIy.com ClO Trends #3 Content CAML Inthise-guide 1 Doyou have what it takes to be a great C10? Neatly 2 quarter of board struggle to see Salary su managers command big 1K Budget busters: Three ways for C10s to fund digital iiatives The digital o Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars LALLLLLLALALLLILILLLLALLLALALLLLLLILULLLALLALLLLLLLLLLLLLLLLALALALLLLLDLLLALALAALLD © Nearly a quarter of board-level execs struggle to see value of tech Lis Evenstad, management editor ‘There is a divide in UK businesses between those who believe in the benefits of digital and those who don't, a report has found, The report, Digital or die produced by Citrix, found that although distal transformation remains a hot topic, more than a quarter of board-level ‘executives don't believe there is time to build digital methods into strategy. “While almost one-third (82%) of UK board-level executives believe digital transformation is a significant opportunity for UK businesses in the next three to five years, almost a quarter (24%) don't know why organisations are placing a greater emphasis on the technology,” said the report. It added that 14% of businesses surveyed didn't plan to adapt their current ‘working practices in the slightest, to incorporate digital methods across the ‘organisation, “Of those businesses, though, questions must be asked about how they feel they can achieve significant growth without the enabler of digital technologyComputerWeekIy.com ClO Trends #3 Content CAML Inthise-guide 1 Doyou have what it takes to bea great C10? Neatly 2 quarter of board level exeos struggle to see value of tech Salary survey shows IT managers command big bonuses 1K Budget busters: Three ways for C10s to fund digital initiatives The digital opportunity for Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars Pager140 underpinning performance. While they may think they are playing it safe, in reality they are running a significant risk,” said the report It also found that only 35% of medium-to-large businesses in the UK had a single digital delivery plan, and only 4% said they had moved to a digital ‘operating model la Henfridsson, professor of information systems and management at Warwick Business School, said that with four out of five Fortune 500 ‘companies having digital platforms, “itis staggering that there is such division among UK business leaders when considering the opportunity digital technology represents”. “Technology has the power to not only support the efficiency and leanness of a business, but itis also now becoming increasingly important to the creation of value and an improved customer experience,” said Henfridsson. Digital versus IT ‘The report also revealed a divide between the functions of an IT strategy versus a digital one, Some 40% of those surveyed said there was no difference, and 44% thought a modern IT strategy made a digital one unnecessary. “It reveals a lack of understanding around the difference between ‘digital and IT,” said the report.ComputerWeekIy.com ClO Trends #3 Content CAML Inthise-guide you have what it takes to a great C107 Nearly a quarter of board level execs struggle to see value of tech 1K Salary survey shows IT managers command big bonuses 1K Budget busters: Three ways for ClOs to fund digital initiatives The digital opportunity for Cl0s 1K UkechS0 interview: ARM Holdings CEO Simon Segars Page oH40 “Outstanding technology can, for example, hold back digital transformation by masking outof-date working practices and a resistance to changing business models.” Jon Cook, sales director for UK and Ireland at Citrix, said the division at board level was worrying. “Companies aiming to develop bold strategies and place an emphasis on long-term innovation, supported by every member of senior management, are far more likely to succeed in this digital era," he said “itis a pivotal time for businesses, in which technology and driving digitalis, key” LALLLLLLALLLLLILILLLLALLLALALLLLLLILULLLALLALALLLLLILLLLLLLLALALALLLLLOLLLALAAALLD ‘Next articleComputerWeekIy.com ClO Trends #3 Content CAML Inthise-guide 1 Doyou have what t take be a great C10? Neatly 2 quarter of board level execs struggle to see value of tech Salary survey shor managers command big bonuses 1K Budget busters: Three ways for C10s to fund digital initiatives The digital opportunity for Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars LALLLLLLALALLLILILLLLALLLALALLLLLLILULLLALLALLLLLLLLLLLLLLLLALALALLLLLDLLLALALAALLD Salary survey shows IT managers command big bonuses Cf Saran, managingeditor People in IT are aspirational, with 45% prepared to jump ship to another ‘company for the right offer even if they are not actively looking for a new job. ‘The Computer Weekly/TechTarget 2016/2017 Salary Survey, which ‘questioned 738 UK and Irish IT and business professionals, found that, as ‘expected, senior IT managers command the highest salaries, with an average annual income of £112,200, 19% of which is bonus-related. In comparison, the average salary for IT staff is £37,010, with a bonus of 8%. Ben Booth, interim CIO and the UK representative of EuroCO, said senior IT roles are seen as part of business leadership rather than technology leadership, “Senior IT management may be board level or part of the core team that delivers the business mission,” he said. As such, the role tends to come with, ‘a remuneration package as part of the senior business cohort, and "bonuses depend on business performance’.cws ComputerWeeklyeom ClO Trends #3 Content MMLC LOLOL LLL LLL The survey found that people who progress into a management role tend to Inthise-guide Do you have what it takes to be a great C10? Neary a quarter of boar level execs struggle to see value of tech Salary survey shows IT managers command big bonuses Budget busters: Tree ways for C10s to fund digital initiatives The digital opportunity for Glos Uktechs0 interview: ARM Holdings CEO Simon Segars Page woH40 ‘see the biggest rise in the bonus they receive. Almost a quarter of people ‘earning between £35,000 and £49,000 said they had received a bonus of 20% or greater on top of their salary. ‘At the top end of the salary scale, 40% of those earning over £100,000 received a bonus of 20% or more. i Employees at mid-career [4 to 10 years in length] see a variety of expansion in raises Approximately how much is your total annual remuneration? ‘hat was the approximate percentage change to you remuneration package inthe last year? Less tan £2500 50000154098ComputerWeekIy.com ClO Trends #3 Content CAML Inthise-guide 1 Doyou have what it takes to bea great C10? Neatly 2 quarter of board level exeos struggle to see value of tech Salary survey shows IT managers command big bonuses 1K Budget busters: Three ways for C10s to fund digital initiatives The digital opportunity for Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars Almost two-thirds of those surveyed said their organisations offered both a career path and the abilty to work in different geographical locations, In Booth’s experience, promotion for more junior people starts with being technology savy, but shifts away from technology in more senior roles. “Exemplary technology skils will get you so far, but to reach senior positions junior people have to think of the business roles,” he said. That said, technology skill should not be forgotten. The survey reported that 84% of respondents agreed with the statement “Continuing ‘education/traiing is important to helping me achieve my career goa” ‘Some 40% of those surveyed sald their organisations would be hiring more developers, systems, network and security engineers, project managers and architects, suggesting that many businesses are actively building technology skills, This reflects the general consensus across industries globally to digitise business. “Technology does not stand stil” said Booth, “There is real danger for individuals ifthey don't embrace change. There will be questions on ‘commitment and usefulness. People who can get excited about the next new thing are going to be more valued. In Booth’s experience, having worked for several major organisations across the private and public sector, the interface between business andComputerWeekIy.com ClO Trends #3 Content CAML Inthise-guide 1 Doyou have what it takes to bea great C10? Neatly 2 quarter of board level execs struggle to see value of tech Salary survey shows IT managers command big bonuses 1K Budget busters: Three ways for C10s to fund digital initiatives The digital opportunity for Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars age BoF40 technology is difficult to get right. “The tech is quite well understood and almost commoditised,” he said. ‘The business side represents both a challenge and an opportunity for IT. ‘The survey found that 46% of respondents plan to increase the size of their technology team. There could be any number of reasons to grow the internal IT team, but industry watchers believe the era of IT-enabled business has finally arrived. ‘The first Fortune 500 list was published in 1955. By 2018, just 12% of the ‘companies originally listed remained. Today, CEOs are scrambling to work ‘out what “digital” means in the context of their business, Some are prepared to invest heavily to boost their technology footprint, such as Walmart's $3bn acquisition of e-commerce company Jet. com, which was announced in ‘August 2016. As businesses become more digitised, the role of internal IT becomes customer facing, ‘Ata recent gathering of European CIOs, Volvo Cars’ director of business development and strategy, consumer IT, Jonas Rénnkvist, said: “IT has 1000+ applications and 50+ legacy applications, Now we build services for millions of customers instead of internal employees. We are lke an IT ‘operator with our core systems supporting them"ComputerWeekIy.com ClO Trends #3 Content CAML Inthise-guide 1 Doyou have what it takes to be a great C10? Neatly 2 quarter of board struggle to see Salary su managers command big 1K Budget busters: Three ways for C10s to fund digital iiatives The digital o Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars LALLLLLLALALLLILILLLLALLLALALLLLLLILULLLALLALLLLLLLLLLLLLLLLALALALLLLLDLLLALALAALLD Budget busters: Three ways for ClOs to fund digital initiatives Cf Saran, managingeditor For years, IT budgets have been squeezed and ClOs are being asked to do more with less. At the same time, digitally powered initiatives are stretching IT departments. During the recent Gartner Symposium in Barcelona, the analyst firm urged CIOs to reorganise their IT function around products, ‘Arguably, a product is something tangible - it can linked to the profitand- loss statement, and has vsiblity at board level Becoming productfocused requires a rethink of the way IT is run, from keeping the lights on to taking ownership of both the intial product development and continued release cycle. This is the type of activity a software company excels at, given that its business is selling software products, But getting there requires a leap of faith, a break from the past and, in particular, cutting the chains that bind IT to supporting legacy systems.ComputerWeekIy.com ClO Trends #3 Content CAML Inthise-guide 1 Doyou have what it takes to bea great C10? Neatly 2 quarter of board level execs struggle to see value of tech Salary survey shows IT managers command big bonuses 1K Budget busters: Three ways for C10s to fund digital initiatives The digital opportunity for Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars Arip-and-replace strategy can reduce cost and is a good option when a contract is up for renewal. For instance, when assessing how to refresh its existing Equalogic SAN, New College Durham decided to swap it for ‘VMware's Virtual SAN (VSAN) technology. Converged infrastructure ‘Some organisations have replaced older x86 servers with converged infrastructure, such as Nutanix. The hyper-converged appliances combine ‘storage and processing in a single box, and are charged on a pay-as-you- ‘grow basis, which enables organisations to start with a small footprint and {grow as their storage or compute requirements increase. Last year, Surrey County Council migrated its datacentre infrastructure to a shared-service, hosted platform based on Nutanix, Modernising hardware goes hand in hand with virtualising servers and migrating workloads onto the public cloud to free up expensive datacentre resources. ‘Where appropriate, some organisations take the opportunity to swap on- premise IT for software as a service (SaaS) equivalents. For example, in 2014, the city of Orlando replaced legacy JD Edwards and Infor software with WorkDay for its new HR system. Similarly, HP replaced its Oracle SiebelComputerWeekIy.com ClO Trends #3 Content CAML Inthise-guide 1 Doyou have what it takes to bea great C10? Neatly 2 quarter of board level execs struggle to see value of tech Salary survey shows IT managers command big bonuses 1K Budget busters: Three ways for C10s to fund digital initiatives The digital opportunity for Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars ‘on-premise customer relationship management (CRM) with Salesforce to support 40,000 staff. Reducing support costs If replacing systems is not an option, CIOs can look at how to get the best deal on their existing software. One company that has gone down this route is the $120n US metal buildings supplier NCI Bulding Systems, which has turned the savings from not renewing a $im annual Oracle maintenance fee into a $60m revenue stream ‘The company runs multiple enterprise resource planning (ERP) systems, mainly Oracle-based, and found it was stuck paying maintenance fees on the unsupported Oracle 10.7 and 11i systems, NCI had a five-year plan to update its legacy Oracle ERP to the latest cloud- based Oracle Fusion system, ‘The company’s CIO, Eric Brown, told Computer Week¥y: “We had paid maintenance to Oracle, hoping we would be able to do theuparade to Fusion.” But there was no direct path, Brown said the company first needed to update its ERP to Release 12 if it wanted to move to Fusion at some point in the future.ComputerWeekIy.com ClO Trends #3 Content CAML Inthise-guide 1 Doyou have what it takes to bea great C10? Neatly 2 quarter of board level execs struggle to see value of tech Salary survey shows IT managers command big bonuses 1K Budget busters: Three ways for C10s to fund digital initiatives The digital opportunity for Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars Page22 0140 But having assessed the functionality of R12 over tti,he said there was not a clear business case to move to R12 over the next five years, Brown decided to drop Oracle support and bought a third-party contract, from Rimini Street. “For half the price of an Oracle support contract, Rimini ‘can support us,” he said. Opting for Rimini Street saved NCI $500,000 in the first year of the support contract, money that would have been paid to Oracle. ‘What to do with an extra $500k Like many organisations, NCI Building Systems’ budgets are tight. It may not ‘seem a vast sum, but Brown looked at how the $500,000 could be reinvested in a digital transformation, as his budget was not increasing. “The building industry is not very high-tech, so we looked at how we could transform it” he sald. ‘Nobody out there had an e-commerce system. We decided to bulld one in-house.” ‘The system, called Agora, is used tohelp builders engineer buildings. Using ‘a Microsoft wizard-lke user interface over the internet, Agora produces a bill of materials, a purchase order and the computer-aided design (CAD) diagrams to meet the specifications the builder requires to constucta Walmart store, for example, said Brown,cws ComputerWeeklyeom ClO Trends #3 Content MMLC LOLOL LLL ae ‘The system transfers the order to NCI's shop floor to manufacture the parts In thise-guide for the order. 1 Doyou have what it takes to bea great C10? Neatly 2 quarter of board level exeos struggle to see value of tech Salary survey shows IT managers command big bonuses 1K Budget busters: Three ways for C10s to fund digital initiatives The digital opportunity for Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars Brown said the product had been an outright success. “I was hoping | could get Sim a month from it" he said. “But we far exceeded that in the first year. The return on investment took less than a month and we made over $60m a year, all from something that cost us only $500,000." ‘The company has just released an update, offering a white box version that ‘enables builders to embed the Agora system into their own websites. Brown's IT team does the integration work for these customers. Brown describes himself as a CIO with a product. “If was a tech company, | ‘would be selling software,” he said. ‘The product was created by NCI's internal IT team, and Brown said the ‘cloud-based software had turned the IT at a bricksand-mortar company into a high-tech venture, “It is very rewarding for the younger generation,” he added, ‘Agora appears to have made a big impact financially. The company's investor presentation, published on 1 September, showed that the building estimation to shop floor automation e-commerce function in Agora had earned NCI $60m in annual revenue, with Agora’s online components purchasing e-commerce function adding a further $10m revenue.ComputerWeekIy.com ClO Trends #3 Content CAML Inthise-guide 1 Doyou have what it takes to bea great C10? Neatly 2 quarter of board level execs struggle to see value of tech Salary survey shows IT managers command big bonuses 1K Budget busters: Three ways for C10s to fund digital initiatives The digital opportunity for Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars Culling legacy IT costs ‘What NCI Building Systems has shown is that itis down to the CIO to find the budget to innovate, with few ClOs fortunate enough to have an innovation fund, “You have to be able tocome up with your own ideas to free Up funds and cash to do cool things,” said Brown. Experts say IT departments need to look closely at how to reduce the ‘amount they spend on legacy software. Application rationalisation is one of the best practices ClOs can use to reduce their legacy IT footprint. Someone has to pay for this support and a recent report from Hackett Group urged CIOs to pass the cost of ‘supporting legacy IT back to the business. ‘One CIO taking this approach is Jim Fowler at industrial giant GE, who has 9,000 applications to support. His strategy is to show the business exactly how much the legacy applications cost. “When we complete an application portfolio plan, we can show each of our business partners what every individual application costs to run,” he said. Fowler told Computer Weekly it could be a “teal eye-opener" when a business owner learns that the company is paying hundreds of thousands of dollars for applications used by only one or two individuals.ComputerWeekIy.com ClO Trends #3 Content CAML Inthise-guide 1 Doyou have what it takes to be a great C10? Neatly 2 quarter of board level execs struggle to see value of tech Salary survey shows IT managers command big bonuses 1K Budget busters: Three ways for C10s to fund digital initiatives The digital opportunity for Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars Page ot 40 LALLLLLLALALLLILILLLLALLLALALLLLLLILULLLALLALLLLLLLLLLLLLLLLALALALLLLLDLLLALALAALLD © The digital opportunity for ClOs Mark Lite, quest contributor Digital is a word ClOs hear constantly nowadays. Some see it as an ‘opportunity or an enabler, while others see it as a threat or disruption. But what is vastly underestimated is how it provides a unique opportunity for the CIO to show leadership like never before. Each year, Deloitte publishes a global CIO survey, which looks into the perceptions, priorities, opportunities and challenges of technology leaders around the world. The 2016-17 report aims to better understand the impact land legacy of the role, meaning the value and impact technology leaders deliver to their organisations, In 2016, Deloitte received responses from more than 1,200 CIOs across 48, ‘countries. Over a quarter of UK respondents were from the FTSE 250. ‘One of the problems the survey uncovered is that many CIOs and business leaders stil have an unhelpfully narrow view of what digital actually means, land the opportunity it presents. Deloitte's data and interviews have shown that many still view it as essentially customer-facing, front-end tools and technologies - what Deloitte refersto as only the tip of the “digital iceberg”MM cws ComputerWeeklycom ClO Trends #3 Content WML LL Underneath this surface is an underpinning structure of other critical areas, Inthise-quide including legacy or core modernisation and investments, infrastructure —_ consolidation, cyber security, and data and analytics tools. And as digital has 1 Doyourave what it takes to matured, it should include a number of emerging technologies too, such as bea great ClO? predictive analytics and machine learning, the internet of things (loT), ee robotics, cloud, cyber and mixed reality (augmented and virtual reality). Noa quarter of board Digitalis shorthand for these technologies as a collective level execs stuage to ee vale of tech Digital technology is also reshaping how work gets done. Inthe same wa, it a can improve the customer experience and make the employee experience Salary survey show IT more interesting, productive and efficient, Digitalis therefore a mindset, managers command bi where technology fundamentally transforms actvty and shapes future bonuses business models, helping enter new markets and develop new products and services, Budget busters: Tree ways fe dosha eta ‘This requires embedding technology in every facet of every business, and iiiatves demands a fundamentally cifferent and exciting role for CIOs. Adopting tis broad view of digital can allow ClOs to not just respond to changing 18 The dighal oppertunty for business needs, but to actively shape and drive them, clos ‘The skill and expectation gap 1h UKtech50 interview: ARM Yet if CIOs are going to drive this digital transformation, they must develop Holdings CEO Simon Sogars ‘and improve their digital abilities and investments, More than a quarter (28% of technology leaders in Deloitte's survey ranked their IT organisationComputerWeekIy.com ClO Trends #3 cws Content CAML Inthise-guide 1 Doyou have what it takes to bea great C10? Neatly 2 quarter of board level execs struggle to see value of tech Salary survey shows IT managers command big bonuses 1K Budget busters: Three ways for C10s to fund digital initiatives The digital opportunity for Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars Page27ot40 as below average in digital skilsets, especially customer and digital ‘experience and analytics. Two out of five COs saidthey were underinvesting in emerging technologies and analytics. That's pretty surprising for a function that is supposed to be leading the technology agenda. In fact, 57% of ClOs reported that the business expects them to assist in business innovation and developing new products and services, but over half stated thatinnovation and disruption priorities currently do not exist or are stil in the process of being built. Similarly, 61% identified cyber security as a core expectation because it'sonly 10% of CIOs cited cyber security and IT risk management as a top business priority. Its important that technology leaders either look to close or manage this gap in expectation. It's damaging for everyone's perception of the CIO role. Ina separate study conducted by Deloitte and the MIT Sloan Management Review, 87% of executives responded that they believed digital technologies ‘would disrupt their industry. Only 44% of those same executives said their organisation was adequately preparing for these looming digtal trends. Digital has become a rallying cry for a wide variety of opportunities, but each ‘organisation has a different focus and set of digital priorities. Within a company, different executives are likely to prioritise a digital agenda closest to their individual function,Computer Weckiyeom ClO Trends #3 Sontent CAML Tesiness expectation ot reining ocean ithe ore Inthise-guide [© Copbiy > eentil ooucces [-~ Gop beoreen pecan and oren copii @ busines ‘Salary survey shows IT ‘araseprs actedCAML ComputerWeekIy.com Inthise-guide 1 Doyou have what it takes to bea great C10? Neatly 2 quarter of board level execs struggle to see value of tech Salary survey shows IT managers command big bonuses 1K Budget busters: Three ways for C10s to fund digital initiatives The digital opportunity for Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars ClO Trends #3 Content In that dichotomy, ClOs can find both great threat and great opportunity. On the downside, inadequate preparation for digital disruption could be interpreted as an indictment of the CIO and broader IT organisation. Left to their own devices, functional leaders will ikely tackle each of the three opportunities in independent ways. For example, the chief marketing officer might just concentrate on the customer, thechief financial officer might just concentrate on the use of analytics for management insight or financial reporting, and the chief operating officer might just look at digitising parts of the supply chain. But while digital might help that leader's particular function, overall it can add to poor investments and jeopardise broader ‘adoption patterns more widely for the business. But all these areas share a strong technology underpinning. The CIO is therefore positioned to visualise the digital “big picture’, and help guide investments that build the right mix of technology skill, architectures and delivery models. They can help avoldostly and siloed expenditure or, even ‘worse, conflicting solutions, Common approaches to security, reliability and ‘scalability can be enforced by the CIO and their team, In many ways, it’s inevitable that as the speed of technological change moves $0 quickly in the consumer space, different parts of the business will take it upon themselves to start looking at their own digital technology. This is often referred to as “shadow IT”ComputerWeekly.com Inthise-guide you have what it takes t Salary survey shows anagers command big Budget busters: Three ways 1 UktechSO interview: ARM ClO Trends #3 MMMM A.good CIO, however, doesn't try to police and block these behaviours. They are a partner that the business turns to, As the department with arguably the strongest IT skills, shouldn't the executive in charge of technology be leading the charge? Crone B See ees ee ree Re nee Se ee ete ee transformation effors, and align to eased eee eat pporting busine ind devering pane eed eae Be aco-creator Inits 2015 survey, Deloitte unveiled three legacy patterns for ClOs: trusted ‘operators, change instigators and business co-creators. While the patterns are fluid and there's no ideal state, the business co-creator role is particularly key for stepping back and driving the wider digital agenda. Business co-creators spend less of their personal time building technology platforms and running operations, and more time focusing on ‘communicating with and cws Content MMMMcws ClO Trends #3 Content CAML ULLAL De influencing the rest ofthe business, Inthise-guide o you have what takes to bea great C10? Neary a quarter of boarce level exeos struggle to see value of tech Salary survey shows IT managers command big bonuses Budget busters: Tree ways {or CIOs to fund digtal initiatives The digital opportunity for Cl0s Uktechs0 interview: ARM Holdings CEO Simon Segars Paget 40 ‘The positive news is that the majority of CIOs (66%) in the 2016/2017 survey ‘want to embody this role. The desire is clearly there, but only a third (34%) feel they are right now. ae le)cws ComputerWeeklyeom ClO Trends #3 Content MMLC LOLOL LLL ae Digital presents a challenging and exciting time for ClOs as they navigate Inthise-guide 1 Doyou have what it takes to bea great C10? Neary a quarter of boarce level execs struggle to see value of tech Salary survey shows IT managers command big bonuses Budget busters: Tree ways for ClOs to fund digital initiatives The digital opportunity for Cl0s Uktechs0 interview: ARM Holdings CEO Simon Segars ages2<40 business needs around digital technologies. ClOs can forge the path forward, This is not by land-grabbing all facets of digital from individual ‘executive sponsors, but by playing the role of conductor and gathering all of the separate initiatives into one shared technology strategy. Today's CIOs ‘should be taking up this challenge, not just for themselves and their IT teams, but for the business overall LALLLLLLALALLLILILLLLALLLALALLLLLLILULLLALLALLLLLLLLLLLLLLLLALALALLLLLDLLLALALAALLD ‘Next articleCAML ComputerWeekIy.com Inthise-guide 1 Doyou have what it takes to be a great C10? Neatly 2 quarter of board struggle to see Salary su managers command big 1K Budget busters: Three ways for C10s to fund digital iiatives The digital o Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars ClO Trends #3 Content LALLLLLLALALLLILILLLLALLLALALLLLLLILULLLALLALLLLLLLLLLLLLLLLALALALLLLLDLLLALALAALLD / UKtech50 interview: ARM Holdings CEO Simon Segars Lis Evenstad, management editor Uktech50 winner 2016 Simon Segars has had a busy year. The CEO of cchipmaker ARM Holdings has led the company through a series of changes, including an expansion of its internet of things (loT) security team, dealing with Brexit and, perhaps most notably, Japanese tech firm Softbank Group's acquisition of the company, ‘When Segars took over as CEO of ARM Holdings in 2013, following Warren East's departure, the company had seen tremendous growth driven by the ‘age of smartphones. In the past three years, it has experienced another ‘growth spurt, this time led by the ever-growing field of oT. But dealing with the mass of connected devices calls fortrue management. In October, ARM partnered with Advantech to accelerate the deployment of loT systems. ARM's mbed IoT Device Platform is intended to serve as an end-to-end management solution, encompassing operating system, cloud and a developer ecosystem, making it as easy as possible to safely manage the development of loT at scale.CAML ComputerWeekIy.com Inthise-guide 1 Doyou have what it takes to bea great C10? Neatly 2 quarter of board level exeos struggle to see value of tech Salary survey shows IT managers command big bonuses 1K Budget busters: Three ways for C10s to fund digital initiatives The digital opportunity for Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars ClO Trends #3 Content “There are endless ways loT devices can be used,” says Segars. “With so many connected devices in areas of business and personal life, i's even more important to manage them properly.” ‘The distributed denial of service (DDoS) attack on DNS firm Dyn in October highlights that need, Segars adds, The attack was one ofthe largest ever to use the Mirai loT malware code, which was released on an underground forum and takes advantage of the generally lax security of oT devices to ‘compromise those that stil use factory default or static usernames and passwords ‘The hackers used the collective connectivity of devices such as routers, ‘security cameras and DVRs - something that has played on Segars’ mind. “it's a potentially scary world,” he says. “All of these connected devices in homes and businesses could be exploited by hackers and that is something ‘we want to avoid, “Look at the [Dyn] attack the security on those devices was pretty horrendous.” IT leaders should worry ‘Segars says business leaders, CIOs and CDOs should put cyber security at the top of their agenda and “worry about itCAML ComputerWeekIy.com Inthise-guide 1 Doyou have what it takes to bea great C10? Neatly 2 quarter of board level execs struggle to see value of tech Salary survey shows IT managers command big bonuses 1K Budget busters: Three ways for C10s to fund digital initiatives The digital opportunity for Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars ClO Trends #3 Content “it's not perfect, but the industry has got pretty mature in terms of conventional security, such as firewalls,” he says, “But in a world of connected security cameras, there is anew attack space for hackers and a lot of people and companies have not taken that into account” ‘Segars believes all connected devices should be managed and updated throughout their lifetime. “We are trying to develop the underlying technology to make that come to life.” he says. Earlier this year, ARM said it was expanding its loT engineering team at the Kfar Netter design centre in Israel. The centre alms to develop technologies, that will influence advanced system-on-chip IP for loT and mobile ‘computing, “We have been working on some of the underlying security features that are needed in chips and products, so an loT device becomes a managed device that can be updated ints lifetime, ke a web browser. All connected devices should do that” says Segars, Brexit and the skills shortage But the loT isn't just about security it's about access to people with the right skills,ComputerWeekIy.com ClO Trends #3 cws Content CAML Inthise-guide 1 Doyou have what it takes to bea great C10? Neatly 2 quarter of board level execs struggle to see value of tech Salary survey shows IT managers command big bonuses 1K Budget busters: Three ways for C10s to fund digital initiatives The digital opportunity for Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars “Innovative technology isn't just about an object - it's got to sit within a broader environment and we only get thebenefit of it when it's working with ‘something else—which requires a whole set of new skills in our industry,” says Segars. “The topic everyone is concerned about is access to people with the right skills.” ‘Segars has taken a stance on Brexit since before the referendum, and is not shy about saying the UK would have been better off staying in the EU. “One of the benefits of being in Europe is access to labour,” hesays. ‘Cambridge, where ARM is headquartered, has grown an exceptional ‘amount, he says, “because it's been a great place to come and work if you're in technology - not just from the UK, but in Europe” It would be disastrous if tech companies suddenly lost easy access to the European talent pool, he says. “It's areal concern. We want to encourage ‘easy access to people from across Europe” Chancellor of the Exchequer Philip Hammond and Prime Minister Theresa May both keep reiterating that "Britain is open for business” and that Brexit will be an opportunity for UK industry, but that doesn't alleviate the fear held by many in the tech world,ComputerWeekIy.com ClO Trends #3 cws Content CAML Inthise-guide 1 Doyou have what it takes to bea great C10? Neatly 2 quarter of board level exeos struggle to see value of tech Salary survey shows IT managers command big bonuses 1K Budget busters: Three ways for C10s to fund digital initiatives The digital opportunity for Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars Page 0t40 ‘Segars concedes that it isn’t very helpful “bemoaning” the decision to leave the EU, but he stresses that lobbying is very important, ‘We are a long way from knowing what Brexit looks like,” he says. “tis important to make sure the interests of the industry are heard and that ‘we get an outcome that works in favour of the technology industry.” Industry has a responsibility ‘On the other hand, the industry has a responsibilty to encourage people to {get into technology at an early age, says Segars, “Another thing is that tech companies need to make investments in the ‘education sector to make sure there isan indigenous supply of skills anyway,” he adds. “it's not just about tech for the sake of tech. Yes, the world needs more ‘computer science graduates and mathematicians, but most, if not all, jobs can benefit from technology, so | would lke to see technology embedded in the education process.” ‘Segars is not necessarily talking about teaching kids how to code, but to show how technology can be used to benefit every area. He gives PE as an ‘example. Children could use activity sensors during their PE sessions and then analyse the data,ComputerWeekIy.com ClO Trends #3 Content CAML Inthise-guide 1 Doyou have what it takes to bea great C10? Neatly 2 quarter of board level execs struggle to see value of tech Salary survey shows IT managers command big bonuses 1K Budget busters: Three ways for C10s to fund digital initiatives The digital opportunity for Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars Pagea8oH40 “Bringing technology into the classroom will lead to people comprehending the benefits of technology,” he says. IT leaders have a responsibility to be part of driving the education agenda, says Segars, but it should be a collaboration. “The government is there to create the right environment, but we can't ‘expect the government to know what every industry sector is going to need, ‘80 companies need to set up opportunities and be involved init,” he says. ‘ARM is playing its part. It has teamed up with several organisations, including the BBC, to create the BEC micro:bit, a microcomputer the size of a ctedit card. The computer, together with an online platform and tools, are aimed at getting kids interested in technology. So far, one million computers have been given away to year 7 schoolchildren in the UK and a separate foundation has been set up to drive ongoing skills development. ‘Committed to the UK If there is one thing Segars is clear about, it is that despite the challenges ahead, ARM is committed to staying in the UK. ‘When the company was acquired by SoftBank earlier this year, some saw it as the UK losing one of its biggest tech businesses to Japan, but ARM andComputerWeekIy.com ClO Trends #3 Content CAML Inthise-guide 1 Doyou have what it takes to bea great C10? Neatly 2 quarter of board level exeos struggle to see value of tech Salary survey shows IT managers command big bonuses 1K Budget busters: Three ways for C10s to fund digital initiatives The digital opportunity for Glos 1K UkechS0 interview: ARM Holdings CEO Simon Segars Page 40 its new owners will continue to be based in Cambridge. In fact, SoftBank has announced plans to more than double the company’s UK workforce, as ‘well as increasing its headcount outside the UK. “We really are a global business,” says Segars. Although headquartered in the UK, most of the company’s business takes place outside the country ‘The firm is constantly thinking about what is happening around the world — where is the technology that will dictate the future? “Running a company on a 24/7 basis means there's always something going ‘on,’ says Segars. ‘One of the reasons SoftBank acquired ARM was its strong capabilities in sglobal semiconductor intellectual property and loT, as well as its proven track record of innovation. So how does its CEO make sure the company stays ahead of the game? “We're all about pushing and expanding our ecosystem and building relationships with as many as we can up and down the supply chain,” he says, “its also about making sure we're not just cooking up things in a darkened back room, but doing things hand in hand with our key partners, “Building partnerships and building relationships is how to keep on top.”CAML ComputerWeekIy.com Inthise-guide Do you have what it takes to bea great C10? Neary a quarter of boar level exeos struggle to see value of tech ‘Salary survey shows IT managers command big bonuses Budget busters: Tree ways for C10s to fund digital initiatives The digital opportunity for Glos Uktechs0 interview: ARM Holdings CEO Simon Segars Paged0oH40 ClO Trends #3 Content LALLLLLLALALLLILILLLLALLLALALLLLLLILULLLALLALLLLLLLLLLLLLLLLALALALLLLLDLLLALALAALLD / Getting more CW+ exclusive content ‘As aCW+ member, you have access to TechTarget's entire portfolio of 120+ websites, CW+ access directs you to previously unavailable “platinum members-only resources” that are guaranteed to save you the time and effort of having to track such premium content down on your own, ultimately helping you to solve your toughest IT challenges more effectively and faster— than ever before. Take full advantage of your membership by visiting ‘www.computerweekly.com/eproducts wshout writen pemeson fom te pulnee _—