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Each of these growth strategies requires the appropriate IS model to support it. For the product leadership and operational excellence models, the IS organization tends to be a support function focusing more strongly on internal customers. But for customer intimacy, the IS organization moves into the front office and focuses strongly on the external customer. This often leads to the most radical changes in the IS organizational model and in the skills needed to support it.
To be customer-centric, the IS organization must be flexible and agile and able to respond quickly and efficiently to customer needs. IS must evolve its capabilities and organize around the customer. The degree depends on the enterprise's customer strategy.
Put simply, being customer-centric means getting close enough to customers to understand their needs. For many CIOs this has meant using the Gartner IS Lite model to reorganize IS. IS Lite advocates pushing IS resources into the business (either the business processes or customer segments), retaining a core of key skills and, if needed, outsourcing some IT services provision.
The skills or capabilities now required to be customer-centric are often found in consulting organizations. Many CIOs talk in terms of reshaping IS to be more like a consultancy, offering key skills and services across the enterprise. These skills focus on being able to identify a customer's needs and translate them quickly and efficiently into a solution.
Another way to make IS more responsive to the needs of the customer is to put IS resources into the customer-facing organizational units, such as business processes or segments. Typically, many enterprises locate relationship managers and business analysts in the front office who then work closely with executives and feed demand signals back into the core of IS.
The amount of resources going into the customer-facing groups depends on a number of factors. Typically, a product leadership approach often only requires relationship management in product and service groups, and sales and marketing. Operational excellence and customer intimacy strategies require relationship management, business analysis and, in some cases, project management by business process.
However, many CIOs and business executives express frustration with the relationship management role. Their argument is that the role is too weak and not responsive enough to the customers' demands. For this reason, they are bolstering the relationship management role, adding in an external customer-facing component, such as responsibility for customer information, and making relationship managers more responsible for projects and service levels in their areas.
Agility and responsiveness to customer needs are key to being customer centric. For operational excellence and customer intimacy, customer needs must drive IS prioritization. This requires business executives, embedded staff and core IS groups to work closely together in a coordinated way. There are four key mechanisms to do this.
Governance Designing an effective governance model allows key decisions to be made quickly and effectively. The governance model identifies key decision domains — typically project identification and prioritization, and project management — and defines the key stakeholders from business executives through to core IS, and the process by which decisions are made.
IT processes Many IT processes are customer facing and run across the entire IT organization — for example, a root cause process that begins when a customer having trouble with a Web site contacts a help desk. These calls would initiate a process that would involve stakeholders across the business and IS in resolution and, along the way, might uncover an innovative way to make the site easier to use.
Competency centres Many enterprises consolidate key IS support skills into "competency centres". Such skills can include project management, enterprise architecture, business modelling and, where it's widely used, SAP. Competency centres provide frameworks, templates, methodology and advice. These centres have an integrative function, as they offer a standard approach to the whole of IS.
Culture But the most powerful, and subtle, linking mechanism is a customer-facing culture, with the dominant beliefs, values and behaviours emphasizing the generation of superior customer value and the continual quest for new sources of advantage. Such a culture emphasizes teamwork and collaboration.
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Process Trip 04 February, 2008 13:07:03
Why Maritz Travel revamped key business processes — and how business and IT came together to make it workWhen Rich Phillips became COO OF Maritz Travel about two and-a-half years ago, he sat down and took a hard look at the big industry picture - +
Ticked Off at Tick the Box Mentality 04 February, 2008 13:01:15
Does your executive search firm know the difference between an MIS manager and a CIO, and if it does, can it explain that difference to its corporate clients?Does your executive search firm know its MIS managers from its elbow? Does it even know the difference between an MIS manager and a CIO, and if it does, can it explain that difference to its corporate clients? - +
How to Get Real About Strategic Planning 04 February, 2008 12:50:59
Everyone agrees that having a strategic plan for IT is a good thing but most CIOs approach the process with fear and loathing. In fact, the majority of CIOs (and the enterprises they work for) are faking it when it comes to strategic planning. Isn't it time we all got real?Oh, it must be nice to be the CIO of a FedEx or a GE or a Credit Suisse. Places where IT and the business are so tightly aligned you can barely tell the two apart. Where corporate leaders understand that IT is a strategic asset and support it as such - +
Strategies for Dealing With IT Complexity 24 December, 2007 10:30:47
Every innovation, every business process improvement, comes with an IT complexity tax that must be paid by CIOs in time, money and sweat. Here are strategies to mitigate the increasing complexity of IT as it enables new business.Every innovation, every business process improvement, comes with an IT complexity tax that must be paid by CIOs in time, money and sweat. Here are strategies to mitigate the increasing complexity of IT as it enables new business. - +
9 Paths to Higher Performance 10 December, 2007 14:09:23
When an organization brings together talented people in a creative, collaborative environment it fosters a culture of high performance, which in turn leads to superior business resultsLike high-achieving individuals, some organizations seem to have the Midas touch. Virtually every initiative they touch earns them gold and even those that fail never seem to cost them much of anything at all
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Adobe launches hosted services, adds Flash to Acrobat 03 June, 2008 09:02:44
Adobe to launch Web site offering users free hosted services for document creation, sharing and storageAdobe this week is set to unveil the next version of its Adobe Acrobat software, which adds support for the company's Flash multimedia technology. The company also plans to launch a new Web site offering users free hosted services for document creation, sharing and storage. - +
Can Macs conquer the enterprise? 11 January, 2008 10:55:53
The field is wide open for a Macintosh insurrection on the business desktop. It could happen, but probably won't. Here's why.If Apple were a football team, the New England Patriots would have had some serious competition this year. - +
Mob wisdom means business 04 January, 2008 07:14:47
So-called 'crowdsourcing' lets companies create massive focus groups, garner fresh ideas, and even predict the futureCrowdsourcing, mob wisdom, interactive ideation, artificial AI -- call it what you will, but the idea of tapping external collaborators to develop or enhance products and services is far from revolutionary.
Read up on the latest ideas and technologies from companies that sell hardware, software and services. Enterprise Wireless WLAN Security
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Delivering the Power of Choice with Microsoft Dynamics CRM
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Solve Exchange Mailbox Storage Issues Once and for All
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- White PaperJoin industry expert Bob Spurzem and Chuck Arconi of Fox Hollow to discover how to reduce Exchange total storage and keep it at a manageable level. Learn how Exchange storage growth can be contained without sacrificing security and accessibility.
Discover how SOA can create smarter outcomes for your business.
Attend and learn:
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- Where you should be applying SOA processes in your company
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Click here for more information.
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CIO Live Podcast #79: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires Part II 05 October, 2007 06:00:00
For his new book, The Outsider's Edge: The Making of Self-Made Billionaires, social researcher Brent D Taylor spent four years of intensive research investigating the psychological make-up and backgrounds of some of the world's richest men and women, including IT luminaries Bill Gates, Larry Ellison and Steve Jobs. Taylor discovered that, despite working in different industries and coming from different upbringings, they all have one thing in common -- they are all outsiders. - +
CIO Live Podcast #78: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires 28 September, 2007 17:34:25
For his new book, The Outsider's Edge: The Making of Self-Made Billionaires, social researcher Brent D Taylor spent four years of intensive research investigating the psychological make-up and backgrounds of some of the world's richest men and women, including IT luminaries Bill Gates, Larry Ellison and Steve Jobs. Taylor discovered that, despite working in different industries and coming from different upbringings, they all have one thing in common -- they are all outsiders. - +
CIO Live Podcast #77: Panasonic Speeds Up Trans-Pacific File Transfers, Part III 21 September, 2007 07:00:00
Part three in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance. - +
CIO Live Podcast #76: Panasonic Speeds Up Trans-Pacific File Transfers, Part II 14 September, 2007 07:00:00
Part two in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance. - +
CIO Live Podcast #75: Panasonic Speeds Up Trans-Pacific File Transfers, Part I 07 September, 2007 07:00:05
Part one in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance.
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Chris Hoff on Virtualization and Cloud Computing 20 November, 2008 10:55:00
Chris Hoff, chief security architect for the systems and technology division at Unisys and an advisor on the Skybox Security customer advisory board, is one of the biggest critics of virtualization security out there. Not because it isn't important - but rather because it is vital and needs to mature rapidly. - +
Cybersecurity is focus of new start-up incubator 20 November, 2008 07:19:00
Texas uni announces the Institute for Cyber Security.The University of Texas at San Antonio Tuesday announced a technology incubator aimed at fostering IT security-based start-ups within the state. - +
Dilip Sarangan on Physical Security M&A 20 November, 2008 11:18:00
Dilip Sarangan tracks physical security companies for Frost & Sullivan. He expects the industry's "need to have" products to weather the economic storm well, with the big players (now including IBM and Cisco) looking for value-priced acquisitions. - +
International Challenges in PCI Security 20 November, 2008 09:15:00
In a country that's seen many regulatory compliance challenges this decade, the headaches of PCI security tend to be analyzed from a largely American perspective. - +
PCI council sharpens oversight of security auditors 19 November, 2008 10:53:00
Quality assurance plan targets security assessors and scanning vendorsThe PCI Security Standards Council Monday unveiled a plan to sharpen oversight of the hundreds of security-service providers now authorized to evaluate merchant networks under the organization's Payment Card Industry data standards.
Vignette Announces 2008 Excellence Awards 21 November, 2008 10:50:00
PGP and Ponemon Institute Unveil Inaugural Australian Data Breach Study 2008 20 November, 2008 17:34:00
Symantec Cloud Services Transform Data Centre Operations Through Proactive Management 20 November, 2008 12:06:00
Verizon Business Offers Tips to Building a Successful Unified Communications and Collaboration Plan 20 November, 2008 12:04:00
AARNet Brings 4K Digital Cinema to Australia: First 4K HD Video Signal delivered into Australia by AARNet 20 November, 2008 12:02:00
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The CIO Executive Council Guide to Success
The CIO Executive Council discusses how to be the best CIO you can be. Download this 16-page strategy guide to discover how to sharpen your commercial instincts, engage business executives and much more.














