CIO100 2013 Overview: Chief transformation officer

The growing project portfolio The CIO portfolio is expanding, as evidenced by the range of projects they will be working on in the next 12 months. Among ICT projects, mobility leads, as shown by a sharp spike in this area in the past three years. Business continuity ranks second, followed by wireless and the cloud. Virtualisation, which was number one last year, has tapered off as the top business technology project (see graph below).

Technology investments that allow more insights into growing sales and customer information, are on the rise as shown by the spike in companies deploying CRM and knowledge management. The ready rise of e-business projects over the past three years is notable, as more CIOs this year report on projects in the digital space. The predominant reasons stated are for automating processes to make it easier for customers and partners to work with them and complete transactions.

At the Ministry of Social Development, CIO David Habershon notes, #8220;We are using technology to deliver services, by working to make our online services easier and faster to use we can redirect services to those who want more personal assistance.#8221;

Into big data territory

Data management #8212; its implications and security challenge #8212; is a major focus of the CIO100 organisations.

ICT is put in the spotlight this year with technology programme blowouts like the teacher payroll system Novopay, data breaches, and the breakdown of systems which impacted on customers and partners.

At the Department of Internal Affairs, a major initiative this year is an upgraded cyber security and intrusion detection system. To support an increased focus on cyber security, the University of Auckland is establishing a Cyber Security Task Force.

#8220;Keeping our customer information safe is of the highest priority,#8221; says Myles Ward, chief technology officer, Inland Revenue.

The data implosion #8212; with the rise of structured and unstructured data #8212; is a key driver for the rise of business intelligence and analytics initiatives across CIO100 organisations.

#8220;I try to look at these challenges and opportunities through an information lens, because ultimately that#8217;s the goal: getting the correct information into commanders#8217; hands to make effective decisions,#8221; says Victor Vae#8217;au of the Defence Force.

Simon Casey at Barfoot amp; Thompson cites the increased significance that IT plays in business planning, as well as a closer relationship between IT and marketing. #8220;We are also noting a growing focus on the value of data quality and business performance reporting,#8221; he says.

At the NZ Customs Service, Mark Tesoreiro, acting manager information systems, says that while technology is an enabler of business improvement, it is the improved quality of information that will help the organisation make better business decisions. #8220;It is vital that we establish a capability to manage our information asset strategically. This function must focus on improving the quality and integrity of our information, coordinate information exchange with other organisations, and ensure we are getting the right information to the right people in a timely manner for them to be effective in their work.#8221;

Mobile

Enterprise mobility has been a top of mind concern, with employees demanding a more flexible and mobile work environment, and wanting to use their personal devices for work. Consumerisation of technology can explain why more than half #8212; 52 percent #8212; of the organisations in this year#8217;s list say they are deploying BYOD or allowing privately owned mobile devices connected to workplace systems.

Over a quarter (29 percent) intend to do this in the future. Interestingly, eight organisations say they allow it, but are not encouraging or are trying to stop the practise. There are 11 organisations that do not allow BYOD (see graph below).

The Bay of Plenty District Health Board is one of those that allows a BYOD environment. Owen Wallace, GM, information management, says a challenge faced by the department is the significant number of part-time and visiting health professionals who want to use their own devices whenever possible. #8220;We are now facing the potential explosion in numbers due to the uptake of tablet technology across the sector,#8221; he says. #8220;It#8217;s probably fair to say we are in catch-up mode in many ways, and we are working through the essentials of appropriate BYOD and enhanced mobility to ensure we have appropriate foundations in place.#8221;

The New Zealand Police, on the other hand, does not support a BYOD environment, but is instead rolling out smartphones and tablets to officers across the country. Officers can query data in the field and complete complex business processes through forms automation. CIO Stephen Crombie says this mobile strategy is a #8220;big transformation#8221; for the force. #8220;If you can get information out to officers where they should be, what is going on in the area, what is happening in the location in real time, that makes a huge difference to [crime] prevention.#8221;

Meanwhile, the push for enterprise mobility has led to a new variant of BYOD: choose your own device (CYOD). The Ministry of Foreign Affairs calls this a #8220;middle ground#8221; approach, providing devices to employees from a range of pre-vetted options.

Across channels

Accessibility for both internal and external users, the customers, is project goal mentioned by a number of CIOs this year. This focus is particularly pronounced, for instance, in the retail and finance sector, where access to multiple channels is already part of the customer#8217;s expectation.

Aaron Toatelegese, head of BNZ enterprise technology services, says the evolution of how customers interact with them means the bank has to be accessible via any channel. #8220;We need to be on hand to enable them to make best decisions they can with their money on their terms, when it suits them.#8221;

Westpac CIO Peter Fletcher points out digital channels, both online and mobile, are fast becoming the norm and creating a whole new way of going about the business.

Westpac has seen a six-fold increase in the uptake of mobile banking over the last half of 2012; therefore, app development is a major area of focus. #8220;However, it#8217;s not simply about developing and releasing an app, understanding customer behaviour, and how mobile devices are used is a big driver behind design and delivery,#8221; says Fletcher.

A glance at how the economy has impacted key areas in the CIO#8217;s domain will reveal projects have been on an upward curve compared to budget and staff numbers (see graph below).

Such is a direct consequence of the pervasiveness of technology across business systems.

Consumerisation of technology, cloud, and data explosion have prompted organisations to review, revamp and sometimes change their entire business models. The networked enterprise environment calls for joint approaches around mobility, cloud, and enterprise systems.

The CIO agenda is to lead through this new landscape, with a business technology strategy meeting current needs, but agile to respond to the inevitable shifts yet to come.

Sheila O#8217;Brien (sobrien@fairfaxbm.co.nz), manager of Fairfax Business Research in New Zealand, provided the analysis of the CIO100 data and graphs. The growing project portfolio The CIO portfolio is expanding, as evidenced by the range of projects they will be working on in the next 12 months. Among ICT projects, mobility leads, as shown by a sharp spike in this area in the past three years. Business continuity ranks second, followed by wireless and the cloud. Virtualisation, which was number one last year, has tapered off as the top business technology project (see graph below).

Technology investments that allow more insights into growing sales and customer information, are on the rise as shown by the spike in companies deploying CRM and knowledge management. The ready rise of e-business projects over the past three years is notable, as more CIOs this year report on projects in the digital space. The predominant reasons stated are for automating processes to make it easier for customers and partners to work with them and complete transactions.

At the Ministry of Social Development, CIO David Habershon notes, #8220;We are using technology to deliver services, by working to make our online services easier and faster to use we can redirect services to those who want more personal assistance.#8221;

Into big data territory

Data management #8212; its implications and security challenge #8212; is a major focus of the CIO100 organisations.

ICT is put in the spotlight this year with technology programme blowouts like the teacher payroll system Novopay, data breaches, and the breakdown of systems which impacted on customers and partners.

At the Department of Internal Affairs, a major initiative this year is an upgraded cyber security and intrusion detection system. To support an increased focus on cyber security, the University of Auckland is establishing a Cyber Security Task Force.

#8220;Keeping our customer information safe is of the highest priority,#8221; says Myles Ward, chief technology officer, Inland Revenue.

The data implosion #8212; with the rise of structured and unstructured data #8212; is a key driver for the rise of business intelligence and analytics initiatives across CIO100 organisations.

#8220;I try to look at these challenges and opportunities through an information lens, because ultimately that#8217;s the goal: getting the correct information into commanders#8217; hands to make effective decisions,#8221; says Victor Vae#8217;au of the Defence Force.

Simon Casey at Barfoot amp; Thompson cites the increased significance that IT plays in business planning, as well as a closer relationship between IT and marketing. #8220;We are also noting a growing focus on the value of data quality and business performance reporting,#8221; he says.

At the NZ Customs Service, Mark Tesoreiro, acting manager information systems, says that while technology is an enabler of business improvement, it is the improved quality of information that will help the organisation make better business decisions. #8220;It is vital that we establish a capability to manage our information asset strategically. This function must focus on improving the quality and integrity of our information, coordinate information exchange with other organisations, and ensure we are getting the right information to the right people in a timely manner for them to be effective in their work.#8221;

Mobile

Enterprise mobility has been a top of mind concern, with employees demanding a more flexible and mobile work environment, and wanting to use their personal devices for work. Consumerisation of technology can explain why more than half #8212; 52 percent #8212; of the organisations in this year#8217;s list say they are deploying BYOD or allowing privately owned mobile devices connected to workplace systems.

Over a quarter (29 percent) intend to do this in the future. Interestingly, eight organisations say they allow it, but are not encouraging or are trying to stop the practise. There are 11 organisations that do not allow BYOD (see graph below).

The Bay of Plenty District Health Board is one of those that allows a BYOD environment. Owen Wallace, GM, information management, says a challenge faced by the department is the significant number of part-time and visiting health professionals who want to use their own devices whenever possible. #8220;We are now facing the potential explosion in numbers due to the uptake of tablet technology across the sector,#8221; he says. #8220;It#8217;s probably fair to say we are in catch-up mode in many ways, and we are working through the essentials of appropriate BYOD and enhanced mobility to ensure we have appropriate foundations in place.#8221;

The New Zealand Police, on the other hand, does not support a BYOD environment, but is instead rolling out smartphones and tablets to officers across the country. Officers can query data in the field and complete complex business processes through forms automation. CIO Stephen Crombie says this mobile strategy is a #8220;big transformation#8221; for the force. #8220;If you can get information out to officers where they should be, what is going on in the area, what is happening in the location in real time, that makes a huge difference to [crime] prevention.#8221;

Meanwhile, the push for enterprise mobility has led to a new variant of BYOD: choose your own device (CYOD). The Ministry of Foreign Affairs calls this a #8220;middle ground#8221; approach, providing devices to employees from a range of pre-vetted options.

Across channels

Accessibility for both internal and external users, the customers, is project goal mentioned by a number of CIOs this year. This focus is particularly pronounced, for instance, in the retail and finance sector, where access to multiple channels is already part of the customer#8217;s expectation.

Aaron Toatelegese, head of BNZ enterprise technology services, says the evolution of how customers interact with them means the bank has to be accessible via any channel. #8220;We need to be on hand to enable them to make best decisions they can with their money on their terms, when it suits them.#8221;

Westpac CIO Peter Fletcher points out digital channels, both online and mobile, are fast becoming the norm and creating a whole new way of going about the business.

Westpac has seen a six-fold increase in the uptake of mobile banking over the last half of 2012; therefore, app development is a major area of focus. #8220;However, it#8217;s not simply about developing and releasing an app, understanding customer behaviour, and how mobile devices are used is a big driver behind design and delivery,#8221; says Fletcher.

A glance at how the economy has impacted key areas in the CIO#8217;s domain will reveal projects have been on an upward curve compared to budget and staff numbers (see graph below).

Such is a direct consequence of the pervasiveness of technology across business systems.

Consumerisation of technology, cloud, and data explosion have prompted organisations to review, revamp and sometimes change their entire business models. The networked enterprise environment calls for joint approaches around mobility, cloud, and enterprise systems.

The CIO agenda is to lead through this new landscape, with a business technology strategy meeting current needs, but agile to respond to the inevitable shifts yet to come.

Sheila O#8217;Brien (sobrien@fairfaxbm.co.nz), manager of Fairfax Business Research in New Zealand, provided the analysis of the CIO100 data and graphs.