today’s it leaders: shaping the information agenda for 2000 and beyond

Today’s IT Leaders:

Shaping The Information Agenda for 2000 and Beyond

Maryfran Johnson, Editor in Chief

A View from the CIO’s Chair: Trends to Watch

• The Business: – Look for a smaller IT departments

trained for rapid response.

• The Technology:– Intelligent networks will drive virtual corporations

for the exploding ranks of mobile workers

• The People:– Tomorrow’s IT Leaders will be

“business-people with an IT specialty”

Francis Dramis, Exec VP/CIO, BellSouth Corp.

“The IT shop will need to be managed by an IT professional. [To succeed], it will have to look and act like a large consulting organization.”

The Business• Greater enduser responsibility for IT

work• IT working more seamlessly with

business units• Centralized management of

infrastructure

“Say to yourself: My business over the next five years will change.”

GartnerGroup CEO Manny Fernandez

Users Will Take More Responsibility for IT Work

• IT functions -- including management -- will become an integral part of the business units

• Companies will put line managers into big IT projects to ensure end users get what they need

“Most companies have now faced the inevitable: Customers rule.”

Jim Champy, Computerworld columnist and chairman/consulting, Perot Systems Corp.

…and eyes on the IT customers within your companies, as well

Trend Watch/ Relationship Management

• Frustration with IT and its poor relationship management causes users to work around it

• Antidote: Companies like W.B. Mason Inc. mandate that IT people do business stints (like taking customer orders)

Gee, Thanks, Y2K!

• Year 2000 projects led to a deeper understanding of IT value to the business

• IT leaders infiltrated the business units (and vice versa)

Fully 50% of 340 CIOs in a Korn/Ferry study saw Y2K as

a “blessing in disguise” -- drawing attention to IT’s

importance to the company

Y2K: 100 Days and Counting...

• “No significant business risk” say 8 out of 10 execs

• 56% expect critical systems to be totally compliant

• 38% expect to have 76-99% of their systems compliant

Cap Gemini survey, 156 large companies, Sept. 1999

Post Y2K: More Scrutiny for New IT Projects

• An estimated 42% of all tech projects are abandoned before completion

• Bad project management increases IT staff turnover

• Crying need for joint, upfront planning by business and IT staffers

The Technology• Smaller, simpler, smarter devices

• “Net-enabled” applications tied to business success

• Computing becomes increasingly mobile and pervasive

Trend Watch/E-Commerce

• Sites like eBay combat “Wild Wild West” reputation; crack down on fraud

• Instant chat becomes a business tool in customer service

• New IT priority: Take more time and do the site right!

“Focus your strategy on customer retention”

Michelle Banaugh, senior VP of E-commerce, Wells Fargo

Trend Watch/The Web

• Personalization, customization

• Intelligent networks (Java/Jini)

• Open source providing real business value (Linux)

• Technology standards matter again

“The Internet changes everything...

“You may not like the direction it’s taking your company or industry, but denial won’t stop it…”

Don Tapscott, CW columnist, 3/29/99

Trend Watch/The Network

• Enterprise-wide network connections become as vital as the network itself

• “Application-aware networking” and “smart” networks will prioritize data

Trend Watch/Applications

• Critical tools: Middleware, collaboration, object development

• The “virtual corporation” struggles to support mobile users and telecommuters

Trend Watch/Mobile Workers

• In the next five years, 90% of the U.S. will have access to a high-speed dial-up option

• By 2003, one-third of U.S. workers will access servers remotely (1/2 will still use dial up connections)

• Copper-based Digital Subscriber Line (DSL) and cable modem technologies will see the most expansion

100 Million PCs Today…

…600 Million Smart Devices and “Info Appliances” by 2003?

“The PC era is over…it has been supplanted by the network”

IBM CEO Lou Gerstner, letter to investors, 3/99

Trend Watch/Consumer Information Appliances

• By 2003, International Data Corp estimates there will be:– 600 Million PCs Accessing the ‘Net

– 300 Million Internet “appliances”

– 2 Billion Consumer Devices

– 50 Million Vehicles with ‘Net Access

The People

• IT leaders becoming business technologists

• Acting as systems integrators, project managers, profit-enablers

• Consultants crossing the IT fence in both directions

But who are these people? (Taking the plunge from business into IT)

• Enthusiastic, quick learners

• Experienced business analysts, project managers & operational staff

• Communicators, problem solvers

• Math whizzes, budget experts, logical thinkers

The Toughest IT Jobs to Fill

• Customer Relationship Management ($65-125k)

• E-Commerce Architect ($100-130k)

• Java/Object-Oriented Engineers ($85-150k)

• Network & Systems Engineers ($75-100k)

Computerworld, 9/13/99

• Information Security Specialists ($70-110k)

• Database Administrators (other than Oracle) ($45-90k)

• Client/Server Developers & Architects ($38-85k)

• Project Managers ($80-140k)

“Good IT professionals can always find more

money elsewhere.”

Robert Reeg, VP, systems development, MasterCard Internatioal, Inc.

Get out the Prozac(and consider the market pressures on IT hiring)

• IT employment will grow 108% from 1996 to 2006

• One in 5 staffers will leave every year through 2002

• Contractors make 30-100% more $$

IT Salaries in New England

• CIO/VP of IT• Director of Networks• Network Admin• LAN Manager• Sr. Programmer/Analyst• Webmaster/Designer• PC Tech Support

• $131,659• $80,150• $53,768• $56,200• $60,750• $43,808• $38,423

Computerworld’s 13th Annual Salary Survey, 9/6/99

• By 2003, 3 out of 5 large companies will outsource more than half of their IT activities*

• Business and IT management skills will make up 65% of the internal skills, while most tech intensive skills will be bought

IT Unit Partners

Trend Watch/Outsourcing

*Gartner Group

“Some of the best IT professionals in the future may

not come from technology at all.”

Fred Matteson, EVP/ IT Services, Charles Schwab

Trend Watch/CIO Status

• CIO’s role changes:– from implementation to strategic development

• CIO’s resume changes:– to include finance, marketing and planning

• CIO’s involvement changes: – to greater involvement with external customer

support

“We want to be the people who know how everything works, everywhere in the

company.”

Peter Dupre CIO, W.B. Mason

Women in IT:Rounding Up The Usual

Suspect Statistics

Enrollments are dramatically increasing for computer science

degrees awarded to women

But the percentage of women seeking such degrees is

dropping

Computerworld, 1/18/99

In 1984, women earned 40% of bachelor’s degrees in

computer science.

By 1996, that number was 27.5%.

National Science Foundation, and U.S. Dept. of Education

The percentage of women in IT has shrunk from 35% in the early 1990s to 29%

todayU.S. Dept. of Labor statistics

In 1998, women programmers earned 81 cents for every $1 men

earned.

And female IT workers got smaller raises than men: 10.2%

vs. 12%Bureau of Labor Statistics, SANS Institute Survey, 1998

But does all that matter anymore?

“It used to be that if you wanted to advance as a woman in

technology, you needed to be a scientist. You don’t today.”

Judy Estrin, CTO/Senior VP, Cisco Systems, July 1999

Female computer engineers are actually faring better than men. They earn an average of $79,000 annually while men

average $75,000Institute of Electrical and Electronics Engineers report, 6/99

Factors Increasing Job Satisfaction for Women and Men

• Salary increases (62% vs. 60%)

• Performance bonuses (57% vs. 49%)

• Training in new technologies (45% vs. 32%)

• Opportunities to advance (44% vs. 37%)

• Freedom to telecommute (44% vs. 25%)

Computerworld Job Satisfaction Survey, April 1998

What makes people leave?• Assignment to a longterm project

• Exhaustion and turmoil on a project team

• Career/salary advancement

• The “fun factor” is missing

Concours Group, study of 40 companies

What makes them stay?• Programs that focus on individual

career development

• Availability of training programs

• Greater flexibility in project schedules

Finally, a few inspiring words from former Vice President Dan Quayle

“I am not part of the problem. I am a

Republican.”

“If we don’t succeed, we run the risk of failure”

“The future will be better tomorrow”

“Public speaking is very easy.”