Starbucks' Next-Generation CIO: Young, Fast and In Control

Change is brewing in the CIO ranks. Just take the case of Starbucks' Stephen Gillett: The collegiate football player, hard-core gamer and socially adept exec is ambitious, digitally inclined and young. Here's why he's a new breed of CIO, and what he has to do to help turn around the coffee giant.

CONNECTIONS
Starbucks Corp.
Time Warner
RSR Research LLC
PAGE 2

Former managers describe Gillett as a socially gifted and highly charismatic businessperson. Just how charismatic? In 2006, he became the CIO of Corbis, which is owned by Bill Gates. During his tenure, Gillett often went head to head with Gates on internal technology-purchasing decisions and persuaded Gates to adopt tech platforms that were, in some instances, from Microsoft's competition, such as SAP's ERP products.

"Stephen was able to explain to Bill why Bill's product wasn't the right product," says Ted Cahall, EVP of the platforms business unit and technologies division at AOL, whom Gillett worked under at CNET and who twice attempted to hire Gillett for the AOL CIO position.

"You'll meet a lot of technology people who are extremely intelligent but they have really stunted social skills," Cahall says. "They don't have an ability to sell their ideas and don't have the ability to ingratiate themselves with key leaders. Stephen does that so well."

Of course, you don't become CIO of any organization without having the technical chops. At 12 Entrepreneuring, where Seely Brown and Gillett worked together, Seely Brown says under Gillett's watch the company installed the first complete VoIP Cisco system and "bet our entire enterprise on it working," he writes in an e-mail. The system worked quite well. "I think [Gillett] even helped Cisco debug the system," Seely Brown says. Cisco used some of 12 Entrepreneuring's learnings in a product-training video. "[That's] just one simple example of thinking both about the technology," says Seely Brown, "and the people."

And, by the way, Gillett's just 32 years old. So it's a safe bet that he's one of the youngest Fortune 500 CIOs. But his take on leadership and success makes him sound older than his years. "Those are traits that are really age agnostic," Gillett says. "Having a proven track record is what really drives your ability to execute."

What emerges, then, is not only a picture of the IT leader who's tasked to transform Starbucks' technology infrastructure and digital in-store offerings, but also a glimpse of the next generation of CIOs: a technologist with an MBA, a socially adept leader with loads of ambition, and a senior vice president of a multibillion-dollar company who uses the Web for LinkedIn as well as World of Warcraft.

The Right CIO for the Job

In January 2008, long-time leader Howard Schultz returned as CEO to rescue the ailing company. Former CIO Bryan Crynes left shortly thereafter. It would have been reasonable for Starbucks to reach into the retail or restaurant industries for a seasoned and well-known IT chief to help drive its transformation. "I was a bit surprised that they would call someone like me," Gillett concedes, given his lack of a traditional retail or supply chain background.

But Starbucks was "looking for a very different kind of CIO," Kuchinad says, one who could manage the traditional IT requirements and "bring innovation to some of the legacy systems." Most importantly, the leadership team wanted a CIO who understood Starbucks' new generation of customers and how they engaged with the brand in store and online.

Paula Rosenblum, managing partner at Retail Systems Research and a former retail CIO, says Gillett's hire was a signal of significant change. "Starbucks wanted to skew new and skew fresh," she says, "and get out of this old and stodgy, 'Well, if we do this in the supply chain, we'll save 15 cents and cost control our way to profitability.' That's not what they're about. They're about the customer experience."

Yet over the last few years, the company was so focused on the back end, "we were not devoting as much resources to the customer-facing side," says Kuchinad. "What fascinated the leadership team was Stephen's knowledge of where and how these consumers lived, and how he was technologically engaged with them. While he did not have the traditional retail IT experience, we wanted someone who was leading edge, who knew where the technology was evolving."

Starbucks wanted a fresher blend: someone who could manage a traditional IT environment and provide a creative take on how technology could better serve its customers using tools such as remote ordering and automated systems, loyalty cards and business intelligence.

"When you look at our customers and what's happening in our stores," Gillett says, "you see wireless devices, iPhones, converged networks, laptops. You see a generation of customers who are entering our stores and engaging [with us] in new ways."


Loading...
Applications MarketSpace
Practical Approaches for Securing Web Applications
Enterprises understand the importance of securing web applications to protect critical corporate and customer data. What many don't understand, is how to implement a robust process for integrating security and risk management throughout the web application software development lifecycle. Learn more »
An Executive's Guide to Web Application Security
Since so many Web sites contain vulnerabilities, hackers can leverage a relatively simple exploit to gain access to a wealth of sensitive information, such as credit card data, social security numbers and health records. It's more important than ever to examine your Web application security, assess your vulnerability and take action to protect your business. Learn more »
Web Application Vulnerabilities
Security managers may work for midsize or large organizations; they may operate from anywhere on the globe. But inevitably, they share a common goal: to better manage the risks associated with their business infrastructure. Increasingly, Web application security plays a significant role in achieving that goal. Learn more »
Using ERP To Gain Competitive Advantage in a Tough Economy
For midsize enterprises, now is the perfect time to invest in a significant IT expansion - despite the economic climate. Learn more »
Why BI is Ripe For Businesses of Any Size
Oracle's range of offerings to mid-size and emerging companies reflects its vision that BI and EPM solutions can be embraced by companies of all sizes. Learn more »
Oracle Accelerate
Ovum has been following Oracle's Accelerate program over the last couple of years because they thought it is a smart strategy for penetrating the upper mid-market. Learn more »
The New Age of ERP
Not only can small and mid-sized companies reap the renowned ERP benefits of greater agility, increased business visibility and measurable ROI. Learn more »
 
SPONSORED LINKS
 

CRM Built for IT: The Executive Guide to Selecting CRM that Meets IT Needs

ROI of Application Delivery Controllers

White Paper: 4 Customer Service Myths

White Paper: Improve Agility with Operational Responsiveness

Removing the Barriers to IT Governance: How On-Demand Software Changes the Game

Cloud Computing--Latest Buzzword or a Glimpse of the Future?

A Balanced Approach to an Application Development Platform

Adobe® LiveCycle®solutions for intuitive user experience

10 Ways Excel Drives More Value from Your SAP Investment

What's New in SOA Suite 11g?

Unleash the Power of Java with Oracle JRockit Real Time

SOA Best Practices and Design Patterns

Application Grid: Ideal Platform for IT Consolidation

Ready to virtualize tier one applications? Check your virtualization maturity.

Learn how to provide complete Business Service Management.

Increase ROI of Your Application Portfolio

Return on Information: Google Enterprise Search pays you back. Get the facts.

VMware. The source for Business Infrastructure Virtualization.

ShoreTel tells businesses to untangle from competitors' complexity and turn to its brilliantly simple UC solution

See how AT&T can help protect your network.

Streamline IT Costs. Boost Performance with WAN Optimization.

Build your 1st app FREE with Force.com

TDWI checklist helps define data readiness for analytics. Download report.

eZine: A Roadmap to Reducing IT Complexity

Reduce risk, gain agility. See how Progress can help your business.

What's Next for Enterprise Resource Planning?

Gartner Magic Quadrant, Application Delivery Controllers 2009

White Paper: Managed Security for a Not-So-Secure World

SharePoint - Unchecked growth of content is unsustainable.

Focus Under Pressure: Why IT Governance Becomes Mission-Critical in a Down Economy

Should Your Email Live In The Cloud? A Comparative Cost Analysis

Adobe® LiveCycle® solutions for business process automation

Architecting Business Intelligence Applications for Change: The Open Solution

Increase UPS efficiency without sacrificing protection.

Unlocking the Mainframe: Modernizing Legacy System to SOA

State of the Data Integration Market

Enhance Customer Loyalty through Higher Responsiveness

Achieving Business Agility with Application Grid

Seven Ways ITIL Can Help You in an Economic Downturn

Four steps to populate your CMDB.

"Enterprise-Proven" is the Prerequisite for Enterprise SaaS Portal Solutions

AT&T Synaptic Storage as a Service. Expand on demand

Trend Micro ranked #1 against real-world malware. Read more.

Webinar: Jump-start your in-house e-discovery with Ringtail QuickCull from FTI Technology

Top Five CIO Challenges

Read the RSA report: Security for Business Innovation

64-page prescriptive guide to security, compliance, and IT operations.

A Clear View Toward Virtualization

Virtualization Technology as a Business Solution

The rules of infrastructure management just changed.

 
 
RESOURCE CENTER