CIO BEST PRACTICES
Enabling Strategic Value withInformation Technology
SECOND EDITION
For anyone who wants to achieve better returns on their IT investments,CIO Best Practices, Second Edition presents the leadership skills and competencies required of a CIO addressing comprehensive enterprise strategic frameworks to fully leverage IT resources.
Filled with real-world examples of CIO success stories, theSecond Edition explores:CIO leadership responsibilities and opportunitiesThe business impacts of both business and social networking, as well as ways the CIO can leverage the new reality of human connectivity on the InternetThe increasingly inextricable relationships between customers, employees, and their use of personal information technologiesEmerging cultural expectations and standards outside the workplaceCurrent CRM best practices in terms of the relationship between customer preferences and shareholder wealthEnterprise energy utilization and sustainability practices—otherwise known as Green IT—with all the best practices collected here, in one placeBest practices for one of the Internet's newest and most revolutionary technologies: cloud computing and ways it is shaping the new economics of business
Preface ixAbout 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
