HP CIO Summit Barcelona 2013

Business white paper

HP CIO Summit
Barcelona 2013:
1+5+10+1
1 message, 5 stories, 10 steps, 1 thought

Business white paper | HP CIO Summit Barcelona 2013

"IT remains the defining
change agent of our time,
and we stand at the next
major inflection point in our
industry. This shift is being
driven by trends that you all
know about and are living
every single day. Whether it
be cloud, security, big data
or mobility. The shift also
changes the way technology
is consumed, the way it's
delivered and the way it's
paid for. This shift demands
what we call 'The New Style
of IT', which in reality is a
new style of business
powered by IT."
- Meg Whitman, President and CEO


1+5+10+1

Table of contents
3

1 message from Meg Whitman

3

5 stories from CIOs who are building
better enterprises

5

10 actionable insights from the
subsequent discussions

7

1 final thought and summary

8

Company overviews

9

About the author

This document provides a distillation of the Building a
Better Enterprise session which took place during HP’s
2013 CIO Summit in Barcelona. I had the honour of
moderating the session. It also provided me with a vantage
point from which I could view to what extent CIOs are
engaging strategically with their organisations.
Ade McCormack

1 Message
CEO Meg Whitman opened the CIO Summit with the core message being that in today’s volatile
market place we need to build a new style of business powered by a new style of IT. Business
as usual will be replaced by massive disruption to both markets and enterprises. Those that
harness the evolving technology trends including the cloud, big data, mobility and security will
be best placed to adapt to this new reality.

5 Stories
The session was seeded by stories from both the panel and members of the audience. These
are notable for their business impact and the criticality of the IT function’s involvement in their
‘happy endings’.
Story 1 – PG, Michele Hughes
PG had significant inefficiencies in respect of field sales. Sales representatives wasted circa 1
hour per person day through administrative inefficiency. Similarly time to delivery was
significantly impaired.
The sales representatives were ill-prepared for their store meetings with little understanding
of inventory status. Plus they were unable to offer any value in respect of product and store
trends.
HP has delivered a suite of mobile applications to address these issues. The solution resulted
in a reduced requirement for sales representatives. Those that remain are spending more time
in the field and have a greater store visit velocity. Plus they are providing better value to their
customers in respect of business intelligence. This story has very clear top line benefits for
PG.
Story 2 – Seadrill, Richard Duplessis
As a result of Seadrill moving its headquarters from Norway to the UK, Richard was asked to
undertake the same process for the data center. The option of setting up a datacenter in
London was just too expensive. So Richard decided to move the data center from Norway and
into the Cloud.
The challenge was to make this big leap in just a matter of a few months. The risk to the
business of failure was colossal. Despite some early hiccups the migration was a success.
This is a story in which HP has a central role as the provider of the Cloud service.
And this story is not limited to back office automation. It embraces real-time analytics . This
story shows how CIOs can make a quantum leap from their traditional IT setup to this new
style of IT.


Story 3 – Banco Sabadell, Carles Abarca
Banco Sabadell is turning adversity into opportunity. Weakness in its local market have
necessitated global expansion and a strong focus on customer-centricity. Drastic regulatory
change in the Spanish financial system coupled with the need to integrate multiple acquisitions
into the business has added to the challenge.
The IT function is a key element of this evolution. However to be an asset rather than a
hindrance it needed to simplify its management structure and consolidate the infrastructure in
order to be more agile.
Technology is playing a key role and HP is advising, managing and helping the Bank transform
its traditional IT framework into the ‘new style of IT’.
The initial focus was on workplace management thus ensuring that IT provided the bank’s staff
with scalable support for their needs today and tomorrow. HP played a key role by virtualizing
the services and so enabling a more flexible provisioning model based on need. This model
had a natural positive impact on security. The next stage is to focus on the customer
experience where mobility will be key.
Story 4 – BT, Howard Watson
In September 2012, BT made a substantial ( over $1bn) investment in acquiring the rights to
televise a substantial number of UK Premiership Football (Soccer) rights. From a position of
having no television content creation and management capability, BT needed to develop an
end to end live broadcasting capability in the 11 months leading up to the first UK Premiership
football match in August 2013.
Not only did Howard need to develop, contract and deploy the underlying systems to enable
the successful launch of this service, but he needed to drive the planning and expansion of
other existing BT systems to pre-empt a massive increase in BT’s customer ordering and
provisioning capability.
HP supported Howard’s efforts as a technology supplier in both core systems and the
deployment of infrastructure to increase resiliency in a number of key areas and in providing
the ongoing infrastructure management through the period of massive increased customer
marketing, orders and provisioning.
Through this period over 2 million customers have subscribed to the BT Sport service and BT
Broadband services have achieved significant market share for new subscribers.
Story 5 – SCOR, Régis Delayat
The challenge was to integrate the various regional information systems resulting from
acquisitions over the past 10 years; most recently US Transamerica Re and Generali Re.
This required the consolidation of 12 data centers into 1 dual data center; both situated in
France.
HP provided a solution comprising multiple applications delivered as a service. For legacy
applications and infrastructure cloud based services (IaaS and PaaS) were provided to facilitate
global consolidation.
This solution has had the impact of standardizing IT services. This in turn has reduced the
associated IT costs and enabled tighter cost control. But this solution was much more than a
‘cost play’. It now provides a Cloud-ready technology platform to support the subsequent
phases of acquisitive growth.

As we can see CIOs are playing a crucial role in building better enterprises. –


10 Steps
Within the stories and the subsequent discussions lay pearls of wisdom which if adhered to
provide a path from technology manager to digital leader. Here are 10 recommended areas of
focus for CIOs looking to take their careers to the next level:
Pre-empt increasing user expectations
Byod is the tip of the iceberg. Global talent shortages will shift the power axis from employer
to employee. The same is true of governments and citizens. Meeting the increasingly
demanding needs of the users will be critical in attracting and retaining top talent.
An example of this in action was provided by Seadrill. Offshore workers expect to have ready
access to email and social media tools in order to maintain contact with friends and family.
Whilst these services may have little to do with business matters, they are essential for the
well-being and thus retention of the workers.
Anticipating user demands rather than fighting them is the way forward.
Develop a worldview that extends beyond the IT function
Great CIOs have gained exposure to the workings of the enterprise beyond the IT function. At
the very least it creates greater empathy with what the users are looking to achieve. At its best
it enables the CIO to provide a nuanced service more attuned to the needs of the users.
Both Banco Sabadell and PG’s IT leadership have experience of being on the ‘consume side of
the IT fence’. This has provided them with a greater appreciation of the role the IT function
provides in the organisation as a whole.
Carefully choose transformational initiatives
Choosing just one or two big bets per year ensures that the CIO is not overwhelmed by too
many ‘spinning plates’ where even one crash would have a significant negative impact on the
organisation.
This is not always a decision that is under the control of the CIO. If faced with multiple
concurrent issues, CIOs are encouraged to triage them in respect of the risk to the organisation
and similarly allocate resources and management time.
We heard that BT manages to take big steps in respect of business growth and transformation
by limiting its big bet activities to one or two per year.
Offload technology management
CIOs have limited mental bandwidth. That bandwidth can be consumed on technology
management matters or on enterprise value enhancement opportunities. Those leaders who
have outsourced some or all elements of technology management release bandwidth which
can be used for proactive demand creation.
There is still an overhead in ensuring that the technology partner adheres to the agreed service
levels, but this requires minimal mental bandwidth in comparison to managing technology inhouse.
A common theme across all the stories was that the key building better enterprises is to
outsource technology management. –
Build trust
Trust is an important element of the CIO’s brand. To be involved in strategic decision-making
the CIO needs to have the trust of the organisation’s leadership. To build trust requires a focus
on the following:
• Credibility – Do you understand the issues that concern the leadership?
• Reliability – Do you deliver on your promises?
• Intimacy – Does the leadership team seek your counsel in business matters?
• Selflessness – Do you focus on what is important to the business rather than what is
important to the IT department?


Trust takes time to nurture. However every act carried out by the CIO and every member of
staff either enhances or dampens the overall trust levels. Thus boosting trust needs to be
‘front of mind’ for everybody in the IT function.
Seadrill highlighted that a healthy sign of intimacy is when the CEO is seeking the CIO’s time to
discuss strategic business issues rather than operational IT matters.
In the case of Banco Sabadell, the business has always had tremendous faith in the role of new
technology in driving business success. Their leadership recognise the correlation between
their success and IT. The IT function maintains that trust by protecting the business from the
technology details and taking charge of the innovation process.
A fanatical obsession with operational excellence
All efforts to build trust with the leadership team will amount to naught if the fundamental IT
services are not being delivered. One can forget being the Chief Innovation Officer when the
CFO thinks the title Chief Phablet Fixer Officer is more appropriate.
PG highlighted that the path to being strategically relevant is paved with a fanatical
obsession with operational excellence. So a smooth running ‘factory’ must be considered as
‘table stakes’ if the CIO is to become a genuine business leader.
SCOR similarly recognises that it needs to focus on operational excellence to provide it with the
flexibility and scalability to embrace both organic and inorganic growth. They have focused on
creating a globalised set of IT processes and systems to ensure they have the technology
platform needed to achieve their business aspirations.
Focus on value rather than cost management
In the absence of making a value case, the IT function will be judged on cost. Typically most
organisational leaders do not understand why their enterprise IT service cannot be run like an
app store with pricing to match.
In fairness this is inevitably a model that IT functions will migrate towards if only to provide a
consumerised skin over the underlying complexity. Nonetheless an exclusive focus on cost will
ultimately reduce IT to a back office service that has no role to play in transforming the
organisation.
So CIOs need to focus on business value. Aligning IT projects and services with the strategic
KPIs of the organisation is required. This is a sure fire way to maximise the strategic relevance
of the IT function to the leadership team.
By embracing more of the business change and process work, rather than the purely digital
piece, the IT function is providing more value to the organisation than just technology
management. This approach comes across in all the stories told. Seadrill sees the value of the
CIO emerging not from technology management but from being the organisation’s change
leader. It was also highlighted that the CIO has an intimate understanding of the organisation
from a process point of view, perhaps one that is even better than the CEO. This should be
harnessed and applied to delivering greater business value.
Apply IT best practice to the business
Of course the IT function does many things well. But one area where the IT function is well
equipped to advise the business is in the area of programme management. The disciplines and
practices that have evolved over the decades in respect of large scale IT projects can equally
be applied to business transformation programmes. This is a practice embraced by Seadrill.
Another area where the business can benefit from the IT function’s capability is in respect of
agile development. Iterative prototyping and regular feedback is now being applied as part of
the increasingly popular Lean Start-up model.
To explain, the Lean Start-up is a model whereby rather than conducting extensive market
research prior to for example a project launch, a minimum viable product is released into the
market at the earliest opportunity. Real market feedback will determine whether the prototype
is modified, enhanced or abandoned. –

–


Both agile and programme management provide opportunities for the IT function to provide
business advisory services.
Be service oriented
Avoid burdening the business users and leadership with IT implementation issues. They do not
need to hear about the ‘how’; so focus on the ‘what’ and most importantly use the language of
the business rather than the jargon of the IT industry.
To maintain the attention of the leadership in particular CIOs are encourage to align support
with the strategic imperatives of the organisation. Certainly couching issues in respect of
profitability, assets, risk, governance and even prison will ensure the CIO is listened to.
PG’s approach of organising the IT function’s structure to reflect that of the business and to
have service managers focused on user adoption is true service orientation.
Develop the brand
This was more implied by the panel than explicitly stated. Using business terminology and
focusing on outcomes rather than tech management were stated examples of good practice in
creating a positive experience and setting expectations in respect of the IT function’s role. This
is brand management in practice.
Brand management is not well understood within the IT function. A five star hotel with a one
star reception is a one star hotel in the eyes of the customer. So service management is a
critical element of developing the IT function’s and thus the CIO’s brand.
Security is an example of where good intentions damage the brand. Many CIOs are used to
controlling the IT environment within which the users operate. Users increasingly find this
constrictive and so refer to the CIO as the CI’No’. Many CIOs will for example argue that using a
personal device compromises security and so ban their use.
However if the users, rightly or wrongly, perceive that the IT function is simply attempting to
cling to the power they have previously enjoyed it will cause deep damage the IT function’s
brand.
So in discussion with the leadership the CIO has to establish what the organisation is prepared
to accept when weighing up user demands with the associated benefits, risks and cost.
Developing the IT function’s brand requires a focus on what is best for all stakeholders.

Summary
Having also attended last year’s Summit, my sensation is that HP is becoming increasingly
capable in its ability to help CIOs build a better enterprise. This year was laden with businessenhancing stories of how HP is actually helping CIOs to build better businesses though
capitalising on how technology is evolving.
The fact that the event became immediately oversubscribed is an indication that CIOs
recognise that HP is evolving from important supplier to strategic partner. The CIOs in
attendance appeared to be less concerned about HP’s strategic direction (as per last year) and
more interested in how HP can help them become strategically relevant to their organisation.
It is apparent that HP’s leaders have embraced customer-centricity. This was reflected in their
visibility and accessibility during this memorable event.
A final thought: Perhaps the most important message for CIOs, which was implied but not
stated, is that job number one is to focus on the condition of their organisation’s customers
(more so than the users). Because at the end of the day the extent to which customers
perceive that they are receiving value for their custom is highly correlated to the overall
sustainability of the organisation.
CIOs that operate with this mind-set will invariably play a critical role in building better
enterprises and consequently have the complete attention and support of their
organisation’s leadership team.


Company overviews
Here you will find short descriptions of the organisations that provided their stories at the
Building a Better Enterprise event.
PG
Proctor and Gamble is an American multinational consumer goods company
headquartered in downtown Cincinnati, Ohio, United States. Its products include pet foods,
cleaning agents, and personal care products.
In 2012, PG recorded $83.68 billion in sales. Fortune magazine awarded PG a top spot
on its list of Global Top Companies for Leaders, and ranked the company at fifteenth
place of the World's Most Admired Companies list. Chief Executive Magazine named PG
the best overall company for leadership development in its list of the 40 Best Companies
for Leaders.
Seadrill
Seadrill is an offshore drilling company domiciled in Bermuda and managed from Norway
by Seadrill Management AS. Seadrill has operations in countries that include Angola,
Brunei, the Republic of Congo, Indonesia, Malaysia, Nigeria, Norway, Thailand, Brazil and
the United Kingdom among others. The company operates Semi-submersibles, Jack ups
and Drillships.
The company is listed on Oslo Stock Exchange and the New York Stock Exchange.
Operational headquarters is situated in London, United Kingdom. Seadrill Management AS
was originally situated in Stavanger, but after a vote to move in 2012, it is from late 2013
situated in London. Other major company locations are found in Singapore, Houston and
Aberdeen. John Fredriksen has a major ownership in the company.
Banco Sabadell
Banco Sabadell is the fourth-largest banking group funded by private Spanish capital. It
includes several banks, brands, subsidiary and holding companies spanning the whole
range of financial business.
Specialising in commercial banking, it has a significant penetration in the company and
medium and high level private customer market. It has a network of 1,387 offices
employing a total of 10,699 staff. It is quoted on the Madrid Stock Market (SAB) and forms
part of the IBEX 35 index.
BT
BT Group plc, trading as BT, is a British multinational telecommunications services
company with head offices in London, Great Britain. It is one of the largest
telecommunications services companies in the world and has operations in over 170
countries. Through its BT Global Services division it is a major supplier of telecoms services
to corporate and government customers worldwide. Its BT Retail division is one of the
largest suppliers of telephony, broadband and subscription television services in GB, with
over 18 million customers.
BT has a primary listing on the London Stock Exchange and is a constituent of the FTSE
100 Index. It had a market capitalisation of approximately £29 billion as of 11th November
2013 the 19th-largest of any company with a primary listing on the London Stock
Exchange. It has a secondary listing on the New York Stock Exchange.
SCOR
Scor SE is a French-based group of financial services companies, primarily focused on
reinsurance. The main companies of the group include Scor Global PC, which provides
property and casualty reinsurance, Scor Global Life, which provides life reinsurance, and
Scor Global Investments, an asset management company. –


More about HP Discover
hp.com/discover

The firm became the world's fifth-largest reinsurer with the CHF 3.4 billion acquisition of
Swiss peer Converium in 2007. The firm's shares are listed on Euronext Paris and form part
of the CAC Next 20 index. In 2007, Scor de-listed itself from the New York Stock Exchange.
On 1 October 2013, SCOR finalised the acquisition of Generali U.S. and became U.S. Life
reinsurance market leader.

About the author
Ade McCormack is an author, market commentator and advisor on digital leadership. He is
an opinion columnist at the Financial Times, advising business leaders on IT issues.
According to former Harvard Business Review editor, Nick Carr, “Ade McCormack sounds a
much-needed clarion call for IT to grow up and become a mature business function.”
Ade has lectured on digital leadership at MIT Sloan School of Management on their MBA
programme. As well as his column in the Financial Times he has a column in CIO Magazine
advising IT leaders on their changing roles. He is also a judge on the CIO 100 awards. Ade’s
perspectives can also be found on the Business Value Exchange and The Digital Strategist
blog. –

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© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only
warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein
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Trademark acknowledgements if needed.
January 2014

This is an HP Indigo digital print.

HP CIO Summit Barcelona 2013

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