Smart Enterprise Magazine

Volume 7, Number 3, 2013

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Another major change being brought about by the latest innovations is the way these technologies lower the cost of entry. Large enterprises still have certain advantages over smaller ones. But with the rise of cloud-based services, some of those advantages are being erased. "Ten years ago, IT was king, and the CIO was running these multimillion dollar projects," says Ray Wang, CEO of Constellation Research, a Cupertino, Calif.based business research firm. "But now, two kids with a startup in Silicon Valley can come up with something new — and your whole business is disrupted." (See related article, p. 28.) Adds Ganesan: "A confluence of digital forces — including the cloud, social media, mobility and big data — is rapidly weaving a web of social and societal commerce like never before in the history of computing. At TCS, this is something we see increasingly on a daily basis as we devise digital solutions for global customers." One result: "The CIO can no longer be the person in the wiring closet," says Michael Chui, a San Francisco-based principal at the McKinsey Global Institute. Instead, he adds, CIOs need to become full-blown business leaders who understand both the impact of advanced new technologies on business metrics and how to make these new technologies effective. Chris Garibaldi, a principal and Project Portfolio Management (PPM) Practice Lead at Deloitte Consulting LLP, adds that while the CIO is a respected position from a technological standpoint, the business wants more. More specifically, it's starting to demand that the CIO be more of what he calls a "Steve Jobs-like figure," someone with a vision for how IT drives the business and the ability to communicate that vision in a way that's both clear and inspiring. While all CIOs face similar pressures, they're not all responding in lockstep. Far from it, in fact. At one end of the spectrum are companies such as Netflix that essentially run their entire businesses in the cloud. Netflix, the online movie provider, has been very public about the fact that many of its core systems run in the cloud, specifically with Amazon. At the other end of the spectrum is GM, where CIO Mott is bringing most IT systems back in-house, creating new data centers and hiring thousands of IT staff. WHERE THE MONEY IS GOING reverse that, and to have 90 percent of the work done by GM staff working in GM facilities. Mott has also turned a cold shoulder on the Overall business cloud. "If you just look at some of the cloud offerings technology priorities, out there, it's basically a subset of what a business ranked on a scale of needs," he insists. "That means you still have to 1 (highest) to 9 (lowest) integrate to it, or have it as a standalone solution. And standalone, in my mind, is suboptimal." Improve business Instead, Mott is opting for an in-house solution results because he believes it will be more integrated, more responsive and better able to scale. "With Create better the efficiency we're trying to gain in how we do internal customer our business, it makes sense for us to be providservice ing that ourselves," Mott says. Mott is also consolidating. Until recently, GM Maintenance, operated 23 data centers, all managed for the operations and automaker by third parties. Now the company is continuous spending more than $545 million to create just improvement of two centers: a new "Enterprise Data Center" in existing IT systems Warren, Mich., and a future site in nearby Milford. Both will be managed by GM's own IT staff. In Improve addition, Mott wants GM to run four regional information "innovation centers," where some 1,500 software security and developers and engineers will work, encouraged regulatory to spend up to 70 percent of their time focused compliance solely on solutions that involve serious customerfacing innovations. Create better While Mott does not plan to use the cloud, external customer his vision for IT at GM does borrow some cloud service concepts, most notably, the idea of building in flexible "bursting" capacity. Mott believes this Improve decision will help make the company's huge volumes of support and access unstructured data more actionable for the busito data for both ness. "The first thing," he explains, "is thinking employees and of data holistically." partners For Mott and GM, that means pulling together a complete packet of information regarding a Generate new single vehicle: its components, engine, transmisrevenue sion, even where it was built. The goal: the ability to discover an issue — for example, a component Reduce IT that needs to be replaced — before it ever becomes spending an issue for the customer. Mobile technology also has a part in Mott's Provide more new CIO role. One tablet app helps salespeople choices for end at dealerships gain access to current and future users (including inventory on their lots. In the future, Mott adds, mobile devices prospective GM customers could be able to use and apps) their smartphones to scan the QR codes on the stickers of vehicles they're eyeing, even when a dealership is closed. "Customers will be able to DATA: InformationWeek, 2013 IT Spending Priorities Survey of Motor City access features and functions and options of that 513 business technology decision Mott joined GM in early 2012 after CIO stints with car, which would help them in terms of a buying makers in North America, March 2013 Hewlett-Packard, Dell and Wal-Mart Stores, and he decision," he adds. has already pulled the plug on a $3 billion outsourcJoe Bassani, until recently CIO at Customers ing contract with Hewlett-Packard. Now the CIO Bank, a regional bank serving Pennsylvania, New plans to invest hundreds of millions of dollars in new GM data and Jersey and New York, is also high on mobile. He led the bank's innovation centers, and to hire some 10,000 new IT employees over IT group to create a mobile application called CB Access for the the next five years. The move is nothing short of radical. Previously, bank's customers; the free software lets users of Apple and Android GM had outsourced 90 percent of its IT work. Now Mott wants to smartphones get access to their checking accounts, check balances, 14 SMARTENTERPRISEMAG.COM 1 2 3 4 5 6 7 8 9

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