“Don’t forget to sell shirts and shoes.”

If I had a say, I would name Kevin “Man of the Year”. Good to see someone with good business logics that brings value and has a focus that is to improve something that is performance focused with a “problem to solve” and bring value to his clients rather than the “we are going to disrupt something that we in most cases did not understand in the first place but might be able to raise some cash for”. Please find the full article @ http://www.washingtonpost.com/business/on-small-business/when-we-were-small-under-armour/2014/11/11/f61e8876-69ce-11e4-b053-65cea7903f2e_story.html

Salesforce have spent 5 BN in marketing for a turnover of 9 I wonder what Kevin would have been able to do if he had that money, my guess is that he would not need it…

The (US) VC game “if we can bet on a large enough number of winning horses that is companies that makes it to an IPO” has brought a number of advances and even more so when the focus is on customer value and there is a problem to be solved.

Much to often I see a lack of focus in the area of corporate IT. The role of the CIO is to ensure that the business is able to deliver products and services to clients and on time within and acceptable price range. “Digital” often resumes to “How to better market products and services” to support the Chief Marketing Officer and should be a part of that delivery capability.

Bottom line: I would invite you to ask “what problem do I solve?”!

Kevin makes money when he sell shoes and athletic equipment. What is the objective of your business and how does the IT department support this effort?

My latest book ”Deliver Business Value with IT” focus on how to execute the business strategy supported by IT and demonstrate how we do this: Deliver Business Value with IT (the book) @ Amazon http://www.amazon.com/dp/B00FOQ6T46

WHAT THE REVIEWERS SAID: “ The “Deliver Business Value with IT” series is an extremely solid piece of work that comes across as the A-Z reference of how to execute and implement IT strategy from a CIO level perspective. The reader will learn robust approaches to deliver services designed to support IT and Business drivers. The perspective that Martin spells out permits an overview of how to leverage existing frameworks but also to effectively support the execution of an IT Strategy aligned with the Business Strategy.”

“The focus that Martin takes in the “Deliver Business Value with IT” series will help in tackling the seven main non-technical challenges any CIO or other senior IT business leaders will face:

1. How and what should I communicate to whom in what way?

2. What to think of when it comes to competences needed to provide my IT services?

3. How to provide the best value at the best cost?

4. What to think of when ensuring efficient and effective delivery of projects?

5. How to establish a sourcing strategy and determining how to manage your vendors?

6. What are the best practices for managing my operations, and what to think of?

7. How can I best scan for and analyse emerging technologies?

The approach taken utilizing basic business management principles and applying them to how to run an IT department are explained clearly, and takes this publication above and beyond the standard publication proclaiming to ‘run IT as a business’. The 2 key trends identified in the publication for the CIO to focus on of “Differentiation” and “Cost” are a perfect example of this.

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“Don’t forget to sell shirts and shoes.”

How to Build a CIO Office

The CIO Office is the command center that needs to be designed to support the needs of the business. “How to Build a CIO Office that you can find only @ flevy https://flevy.com/browse/business-document/how-to-build-a-cio-office-288 spells out the logics for a “right” positioning.

The material support the logics spelled out in “Deliver Business Value with IT” that you can find on Amazon @ http://www.amazon.com/dp/B00FOQ6T46

The “Deliver Business Value with IT” series provides a good overview and actionable material of the ways a CIO can provide valuable and effective support to your company strategy and leverages business model concepts to deliver business value from IT. Martin Palmgren propose an extremely solid piece of work that comes across as the A-Z reference of how to execute and implement IT strategy from a CEO and CIO level perspective.”
Executive Summary:

The CIO and the IT Department need to position as premium provider of IT services and focus on value to cost.

In order to avoid the “do we really need a CIO and IT department to bother us with technology when we can use the cloud?” the CIO has to ensure that the business strategy and business objectives are supported by IT (from a Business and IT architecture perspective). Where the IT Strategy support Strategy execution, “Time to Market”, Cost Effectiveness and stakeholder expectations from an Executive, Business Unit, IT Management and IT Risk Management perspective.

To deliver business value with IT we need to Focus on the Business Bottom Line: How fast can we get our products and services to market ‘Time to Market’ & how can the IT department support the business from a Cycle Time and Cost Effectiveness perspective.

The IT Bottom line is that up to 40 % of current IT spend occurs outside the IT budget (CRM, Cloud). The IT department needs to position itself as a facilitator to IT services and effectively address emerging needs, market opportunities and demonstrate that the current Business Model is supported effectively. The IT department should facilitate the access to IT services to support new and current business initiatives. The business strategy emerge out of a number of initiatives that are successful or not. The IT department need to support the ‘Run’ of day-to-day operations as well as new projects. The Cloud might particularly be of interest within this frame.

We believe that in order for the CIO and the IT Department to position as premium provider of IT services and focus on value to cost we need to understand the Business (IT) Strategy and how the IT department can deliver effectively to business objectives, that is to deliver business value with IT:
– What is the Business’s strategy and plans?
– What is the current business model that IT has to support?
– Where could IT make a significant impact on the business?
– Are there any further opportunities to use IT?
– How do we provide IT Services as we meet demand and cost drivers where the decision is to make (internal) or to buy (external service provider)?

We have identified 2 key trends for the CIO to focus on: – Differentiation (That is, how does IT provide a competitive advantage for the business), and – Cost (How does the IT Department deliver IT Services cost effectively). To do so we need to Build an effective IT Delivery Model to meet business needs and expectations as we leverage business strategy execution and business processes supported by an IT Service strategy (ITIL, IT – CMF, CobIT 5 (ValIT, CobIT , RiskIT), ISO 38 500, TOGAF and ISO 9001, ISO 27 001, COSO) delivered in a Business IT roadmap; that is how do we support business objectives and processes leveraged by IT and an effective IT Services strategy. Within this scope we would by definition address how we execute the IT service strategy (ITIL) Design – Spell out IT Activities from a demand and supplier side, Build – Set IT processes and key performance indicators, Run – Aligned to described ITIL activities and processes and full IT Financial Management (supported by delivery capability IT CMF, COBIT 5). Once services defined we can then decide where to run the application that support the IT and or Business Services (server / internal / external cloud / outsourced provider).

The CIO and IT Department that sit around and wait for the Business Strategy to be formalised to build an IT strategy and vision might not make the 18 months magic mark. The IT Bottom line is that the IT Strategy should support business objectives, with new technology as needed as the IT department delivers effective IT Services and innovative technology solutions to improve competitiveness, demonstrated and articulated.

How to Build a CIO Office