The New Voice of the CIO: Travel and Transportation Executive Summary

1. The
New Voice
of the
CIO
Insights from the
Global Chief Information
Officer Study
Travel and Transportation Executive Summary

3. Travel and Transportation Executive Summary 1
Introduction
In a fast-moving business environment, how can today’s Chief Information
Officer (CIO) make the biggest impact on behalf of the entire organization?
To answer that question, we listened to over 2,500 CIOs worldwide,
including 149 Travel and Transportation CIOs representing six industry
sub-segments in 35 countries. The sub-segments include Airlines; Airports
and Terminals; Freight and Logistics; Railroad (passenger and freight);
Shipping; and Travel and Hospitality. These interviews, along with our
statistical and financial analyses, made clearer the changing demands on
CIOs. Not satisfied to be known only as consummate IT experts or
perpetual seekers of savings, CIOs are redefining their role.
The voice of the CIO is being heard in new ways as CIOs are increasingly
recognized as full-fledged members of the senior executive team.
Successful CIOs are much more actively engaged in setting strategy,
enabling flexibility and change, and solving business problems – not just IT
problems.
Within the Travel and Transportation industry, significant pressures have
affected both the top and bottom lines for every segment. These factors,
including significant economic downturns in many markets, the rising
costs of fuel, and fewer travelers for business and leisure, are just some of
the changes that have dramatically impacted all segments of the industry.
These issues in turn have influenced how the Travel and Transportation
industry as a whole innovates and interacts with customers. Overall, 65
percent of Travel and Transportation CIOs anticipate the need for
substantial change within their organization – change that will drive
smarter operations and growth within their organization. However, only 55
percent of these CIOs indicate that they have been successful in these
endeavors in the past. On top of the industry issues, differences in
opinions between the CEO and CIO as to what are the most important
actions to address further contribute to the challenges faced by today’s
Travel and Transportation CIO. To address these issues and accelerate
improvements to their business, CIOs are allocating their time much
differently than before.

4. 2 The New Voice of the CIO
Today’s Travel and Transportation CIOs spend an impressive 56 percent of
their time on activities that spur innovation. These efforts include
generating buy-in for innovative plans, implementing new technologies
and managing non-technology business issues. The remaining 44
percent is spent on essential, more traditional CIO tasks related to
managing the ongoing technology environment: reducing IT costs,
mitigating enterprise risks and leveraging automation to reduce costs
elsewhere in the business.
CIOs universally acknowledge that some of their most important objectives
too often seem to clash: How can we support the introduction of new
services while avoiding the disruption of existing services? How can I
reduce costs while improving services? How will I balance the need to
influence business strategy with the need to provide top-notch IT support?
The study demonstrates that successful CIOs manage and excel at the
extremes of three seemingly contradictory pairs of roles. They go beyond
cost-cutting and day-to-day IT management – become strong
collaborators within the business, driving innovation, creating value and
executing pragmatically. Interestingly, there is a lot of variability across the
T&T segments in terms of the actions taken by CIOs to drive impact.
Complementary, yet sometimes conflicting roles
One CIO summed it up well: “In IT, we are not magicians, but we are
certainly jugglers.” On any given day, CIOs are poised for the unexpected
– leading an organization that solves myriad problems for both internal and
external customers. Without question, IT functions represent the lifeblood
of most businesses. CIOs told us that they can only turn more attention to
new technology ideas after addressing current IT needs.
After thousands of interviews, we found that successful CIOs actually
blend three pairs of roles. These dual roles may seem contradictory, but
they are actually complementary. To characterize each role, we have
coined a term that describes its dominant quality. At any given time, a
CIO is:
• An Insightful Visionary and an Able Pragmatist
• A Savvy Value Creator and a Relentless Cost Cutter
• A Collaborative Business Leader and an Inspiring IT Manager.

5. Travel and Transportation Executive Summary 3
By integrating these three pairs of roles, the CIO:
Makes innovation real
It’s not enough to just plan for innovation; it requires a robust foundation.
As an Insightful Visionary, a CIO is perceptive – promoting a broad
technology agenda to help the business profit from leading-edge
initiatives. The flip side of the Visionary is the Able Pragmatist role. As a
Pragmatist, a CIO must deal with the realities of the business. The
Pragmatist also facilitates the productivity of current IT solutions to allow
more time and more budget dollars for innovation.
Raises the ROI of IT
Using IT to produce greater business value is vital, accompanied by an
ongoing focus on lowering costs and heightening efficiencies. A Savvy
Value Creator finds new ways to help customers and the organization
profit from how data is used. The Relentless Cost Cutter, its counterpart,
is focused on managing budgets and processes to eliminate or reduce
costs.
Expands business impact
To contribute the most to the organization, proven expertise in both
business and technical matters is vital. Part of the time, CIOs will engage
with the enterprise as Collaborative Business Leaders to drive new
business initiatives and cultural shifts jointly with fellow chief executives
(CxOs). At other times, the Inspiring IT Manager role occupies center stage
to motivate the IT organization and deliver superior IT performance.

6. 4 The New Voice of the CIO
Adjusting the mix, one pair at a time
It’s no surprise that CIOs must reconcile seemingly opposing mindsets.
But our findings revealed ways in which they can be more effective in this
everyday balancing act. Even some experienced CIOs acknowledged that
they are sufficiently strong in just one or two of the six CIO roles. Still,
every role requires at least some attention.
The realities facing each individual influence how a CIO can and should
manage change at any given time. Within Travel and Transportation, we
not only looked at the group as a whole, but also analyzed data at the
segment levels that make up this industry: Airlines; Airports and Terminals;
Freight and Logistics; Railroad (passenger and freight); Shipping; and
Travel and Hospitality. To simplify the terminology in this report, we
primarily refer to CIOs who work in organizations with high PBT (profit
before tax) growth as “High-growth CIOs” and to those working in
organizations with low PBT growth as “Low-growth CIOs.” (see page 16,
“How our research was conducted.”)
Many factors impact the decisions about how much emphasis a CIO
places on any single role, including macroeconomic and regional
conditions, industry-specific forces and various organizational
characteristics, as well as the CIO’s own skills and aspirations.
Despite the multiple forces at play, our findings show that successful CIOs
discover ways to focus on high-value projects in support of their
organizations.
In the following pages, we share with you the voices of many Travel and
Transportation CIOs, including what they are doing to achieve three
primary goals: to make innovation real, to raise the ROI of IT and to
expand business impact.

7. Travel and Transportation Executive Summary 5
Making
innovation
real
Insightful Visionary and
Able Pragmatist
The Insightful Visionary is active in setting strategy, and helps the business
explore how technology can drive innovation. The Able Pragmatist sets “I am driving for IT to be viewed
the stage for enacting innovation. Key Visionary actions are to push as a partner to the business, and
business/technology integration, champion innovation and expand CIO not an internal supplier. This is
influence. Key Pragmatist actions are to enable the corporate vision, make integral to driving additional
working together easy and concentrate on core competencies. value as the relationship develops.”
CIO, European Railroad
High-growth CIOs in the Travel and Transportation area are very involved
in the senior levels of the organization, in contrast to Low-growth CIOs.
More than 58 percent are part of the senior management team, and
approximately 90 percent report either to the CEO or to a direct report of
the CEO. In doing so, they spend a lot of time on enabling and supporting
the business vision, often by linking business and technology. Although
Travel and Transportation CIOs are allocating large portions of their time
and effort to the integration of business and technology, they have a way
to go in positioning IT as an enabler of the business vision. They report
that the rest of the organization still sees IT more as a core service
provider than a driver of innovation.

8. 6 The New Voice of the CIO
Figure 1 IT in T&T businesses centers mostly around core services.
Despite their influence and exposure to senior management, they fail to position IT as an
enabler of the business vision.
Provider of core services 28%
Provider of industry-specific solutions 26%
Facilitator of process efficiency 23%
Enabler of business and corporate vision 22% Perception
gap
On the flip side of this role, High-growth CIOs who are Able Pragmatists
are using collaboration and partnering technologies to spur innovation and
better position IT as an innovator.
Figure 2 Collaboration and partnering are key.
High-growth CIOs are Able Pragmatists, who use collaboration and leverage third-party
services more often to enable the business vision.
Low growth 33%
+109%
High-growth T&T CIOs actively use
collaboration and partnering
technology for innovation within High growth
the IT organization more
69%
Low growth 22%
+68%
High-growth T&T CIOs actively use
collaboration and partnering
technology for innovation across High growth
the entire orgnzation more
37%
Are you well-versed in how emerging technologies and innova-
tive processes can address uncovered business needs in your
industry?
In what ways will you partner with third parties to increase the
time you devote to driving innovation within the business?
How can you expand the use of collaborative and communica-
tion tools to widen the knowledge networks of employees and
partners?
Do you measure implementation results so that business
colleagues not only understand the results, but are convinced
and inspired as well?

9. Travel and Transportation Executive Summary 7
Raising the
ROI of IT
Savvy Value Creator and
Relentless Cost Cutter
The Savvy Value Creator devises better solutions by understanding
customers’ needs, while the Relentless Cost Cutter is vigilant about “The business expects the ‘hygiene’
trimming expenses wherever possible. Key Value Creator actions are to of running IT to be done. If you
make the data “sing,” reach customers in new ways, and enhance don’t do that properly, then there
integration and transparency. Key Cost Cutter actions are to standardize is no point in talking about
to economize, centralize the infrastructure and keep cost reduction a top innovation.”
priority. CIO, Middle East Airline
It comes as no surprise that Travel and Transportation CIOs are focusing
on turning data into actionable information; in an industry where data is
critical to running the business, it is not optional to ignore this need.
High-growth CIOs are Savvy Value Creators. They are not only working on
turning data into actionable information, they also realize that customers
will expect world-class integration and transparency within a short period
of time. Although there is a gap between the CIOs’ stated focus areas and
the criteria by which they expect to be measured, they are pushing ahead
with data analytics and optimization in order to position their organizations
for the future.

10. 8 The New Voice of the CIO
Figure 3 Data analytics and optimization are top of mind.
A potential issue for the Savvy Value Creator is the gap between stated focus areas and the
criteria by which CIOs are measured.
Business intelligence and analytics 80%
Mobility solutions 75%
Top innovation plans Virtualization 69%
SOA/Web services 69%
Self-service portals 68%
Cost effectiveness 52%
Project execution 48%
Performance assessment criteria New system implementation 32%
Aligning business and IT 30%
Business Intelligence initiatives 1%
With the significant economic impact to all Travel and Transportation
segments in the last few years, cost cutting continues to be a high priority
for all CIOs in T&T segments – even higher than in other industry segments.
Figure 4 Cost Cutters standardize and economize.
Cost cutting ranks higher as a performance criteria for T&T CIOs than for CIOs from
other industries.
Overall 43%
Cost management
T&T +21%
more
52%
In what ways can you work with the business to extract the
maximum financial return from the current IT portfolio?
Do you actively reach out to the business to jointly capture
relevant information and do you suggest new ways it can provide
value?
How can you leverage competitors’ experiences to further
optimize business and IT processes?
If you were your own successor, what are the top three things
you would do to generate a 20 percent increase in performance
from your IT investments?

11. Travel and Transportation Executive Summary 9
Expanding
business
impact
Collaborative Business Leader and
Inspiring IT Manager
The Business Leader thoroughly understands the organization’s core
business and builds strong partnerships, internally and externally. The “Shortage of IT personnel is
Inspiring IT Manager demonstrates personal IT expertise and advocates chronic. . . talent that
for stronger skills across the IT organization. Key Business Leader actions understands both IT and business
are to know the business, get involved with business peers in non-IT is required urgently.”
projects, and present and measure IT in business terms. Key IT Manager CIO, Asia Pacific Freight and Logistics
actions are to cultivate truly extraordinary IT talent, lead the IT forces and company
enhance the data.
Travel and Transportation CIOs are well regarded by their management
teams, more so than in other industries. Among High-growth CIOs, not
only are they considered more collaborative, they also receive high scores
and credit for technology’s contribution to the business:

12. 10 The New Voice of the CIO
Figure 5 CIOs in the T&T industry are highly regarded.
T&T CIOs are well received by their management teams, more than at other industries
and particularly high-growth T&T companies.
Low growth 53%
Full sample High growth +47%
more
78%
Low growth 67%
T&T
High growth +37%
more
92%
Travel and Transportation CIOs are equally well regarded by their own
teams, particularly in the area of fostering expertise and managing
technology within the organization.
Figure 6 Safeguarding and optimizing data is paramount.
T&T CIOs are Inspiring IT Managers who foster IT expertise to extract and preserve
critical business data.
Low growth
18% 18% 15% 17% 17% 15%
Allocation of time High growth
27% 21% 14% 14% 14% 10%
Implementing Creating Managing Ongoing Managing Ongoing
new technology innovative plans non-technology technology ongoing technology
and business and getting business issues cost technology problem solving
initiatives buy-in reduction activities
Do you leverage business relationships throughout the enterprise
to expand your scope of responsibilities beyond the IT
organization?
How can you start an ongoing dialogue between the business
and IT that also drives shared objectives and measurements?
Are you a role model with state-of-the-art expertise in at least
one IT domain?
Do you have a flexible, comprehensive plan to enhance business
and technology skills throughout the IT organization?
Is your IT organization passionate about protecting and improv-
ing the quality of enterprise data?

13. Travel and Transportation Executive Summary 11
Managing dual roles in the future
Despite the multiple forces at play, our findings show that CIOs have
discovered ways to focus on what matters most to them and their “We cannot continue our current
organizations. (way) by extension of our past way
of doing business. Alongside. we
CIOs in Travel and Transportation have faced significant issues during the need to be able to not just respond
last several years – not only the obvious economic challenges, but also to the users’ demands, but also be
disconnects between senior executive priorities, which exacerbate the able to proactively give ideas to the
challenges CIOs face in making innovation real, raising the ROI of IT and
business.”
expanding business impact. CIO, Asia Pacific Travel & Hospitality
Company
CEOs and CIOs are aligned in terms of the need for significant business
model innovation over the next few years. More than 50 percent of CEOs
report they are planning significant changes to their business in order to
capitalize on global integration opportunities. Both CEOs and CIOs also
recognize the need to collaborate both internally and with external
partners.
Figure 7 Differences exist between CEOs and CIOs.
Differences between CEOs and CIOs on the importance of environment, budgets and
technology exacerbate the challenges.
50%
Percent of CEOs Reporting Factor as Change Driver
People
skills
40% Globalization
Environmental factors
issues
Regulatory
30%
concerns
Macroeconomic
factors
20% Technological
factors
More important to CEOs
10% Other More important to CIOs
Budgets
0%
0% 10% 20% 30% 40% 50%
Percent of CIOs Reporting Factor as Change Driver

14. 12 The New Voice of the CIO
However, disconnects remain in several key areas. While CIOs rank
concerns around macroeconomic, technological and budgetary issues as
very high on their priority list, CEOs are focused on people skills,
globalization, regulatory concerns and environmental issues as the most
important factors impacting Travel and Transportation organizations.
Reconciling these differences in order to drive successful change for the
business remains a key challenge for the CIO.
In analyzing the data from all of the interviews and discussions we
conducted, we’ve developed profile analyses in the form of a spider
diagram to provide a visual for each of the six dimensions. As shown in
Figure 8, High-growth Travel and Transportation CIOs stretch to perform in
five of the six dimensions. High-growth CIOs focus more on being an
Insightful Visionary, Savvy Value Creator and a Collaborative Business
Leader. Low-growth CIOs focus more on the Inspiring IT manager role, but
both groups place equal importance on the Relentless Cost Cutter role.
Figure 8 Disconnects remain in several key areas.
There is a large variability across sub-industries as it relates to actions taken by CIOs to a
“Very Large Extent.”
Percentage of T&T CIOs taking the action to a very large extent.
0% 50% 100%
Insightful Proactively push IT as an • Shipping • Freight and Logistics;
Visionary innovation element Railroads
• Shipping • Airlines; Airports
Collect innovation ideas
and Terminals
Pragmatist Utilize third-party business • Freight and Logistics; • Airlines
or IT services Airports and Terminals
Use collaboration and • Airports and • All others
communication tools Terminals
Value Creator Have strong data • Airports and • Shipping
goverrnance model Terminals
Sell into to outside parties • All segments
Cost Cutter Is infrastructure completely • Shipping • Railroads; Freight and Logistics;
owned/operated? Airports and Terminals
• Airports and • Shipping
Will processes be stand/
Terminals
low cost
Collaborative What score would the • All segments
Leader entire senior team give
tech for its contribution to
the business?
Data available for relevant • Airlines • Shipping
Inspiring IT
Manager end-users?
Proactively craft data into • Shipping • Freight and
actionable information? Logistics

15. Travel and Transportation Executive Summary 13
While High-growth Travel and Transportation CIOs do a good job in
stretching across all six roles, CIOs in the segments are taking varied
approaches in support of their roles and goals, and have different opinions
on the best approach to achieve their objectives. Some examples of these
differences include:
• Shipping is the only segment of T&T that does not see IT in the role of
innovator. The rest of the T&T sub-industry CIOs report upward of 70
percent that they push IT as an Innovation Element.
• Freight & Logistics, Airport & Terminals and Railroad CIOs strongly
believe in a centralized infrastructure, in contrast to Airline CIOs, who
strongly favor outsourcing their IT infrastructure.
• More than 75 percent of Shipping, Airline, and Travel & Hospitality CIOs
utilize third-party services, but more than 40 percent of Railroad CIOs
use no such services at all.
• More than 75 percent of Travel & Hospitality, Freight & Logistics, and
Airline CIOs use collaboration and communication tools, but 50 percent
of Airport & Terminal and Shipping CIOs report no use of these tools.
• Shipping CIOs report that strong Data Governance Models are in place.
A large number (between 21 percent and 45 percent) of CIOs from the
rest of the sub-industries indicate a complete lack of such models.
All segments agree that technology makes a strong contribution to the
business, and on the importance of converting data into actionable
information. The challenge for Travel and Transportation CIOs is how to
become a driver of change and innovation within their organization.

16. 14 The New Voice of the CIO
Figure 9 Obvious gaps exist between High-growth and Low-growth CIOs.
High-Growth T&T CIOs stretch more to perform in five of the six dimensions, when
compared to Low-Growth CIOs
Insightful
Visionary
8
7
6
Inspiring IT 5 Savvy Value
Manager Creator
4
3
2
1
Relentless Collaborative
Cost Cutter Business Leader
High-growth
Low-growth
Able
Pragmatist Low-growth
What Travel and Transportation
CIOs are doing
CIOs within each segment are focusing on the activities most important to
them, and in parallel report that substantive change to the IT organization
– and the enterprise – is needed. In order to successfully make these
changes, Travel and Transportation CIOs will need to partner more closely
with the business in order to drive transformation that can truly make a
difference
Over time, we expect CIOs to regularly assess how much emphasis is
appropriate on each of the three pairs of roles. Our profiles offer CIOs a
more structured approach to identify where they want to increase their
focus and how to do it. Whichever role you choose to emphasize, we look
forward to working with you.

17. Travel and Transportation Executive Summary 15
Figure 10 Innovation has various aspects.
T&T CIOs have developed ambitious plans to enable their companies’ innovation
agendas.
Business intelligence and analytics 80%
Mobility solutions 75%
SOA/Web services 69%
Virtualization 69%
Self-service portals 68%
Customer and partner collaboration 66%
Risk management and compliance 65%
Technology-driven innovation 60%
Unified communications 57%
Business process management 57%
Application harmonization 57%
Flexible sourcing 53%
Collaboration and social networking 50%
Service management frameworks 49%
Green IT 46%
Enterprisewide human capital development 43%
Web 2.0 and mash ups 39%
Cloud computing/software as service 36%
Other 11%
For further information, please send an e-mail to the IBM Institute for
Business Value at iibv@us.ibm.com. To download the complete IBM
Global Chief Information Officer Study, visit our Web site: ibm.com/
voiceofthecio
ibm.com/voiceofthecio

18. 16 The New Voice of the CIO
How our research was conducted
This report is the inaugural edition of our IBM Chief Information Officer
(CIO) study – the latest in the ongoing C-Suite Study Series developed by
the IBM Institute for Business Value. To better understand the challenges
and goals of today’s CIOs, we met face-to-face with 2,598 of them, in
what is the largest known sample of these executives. Between January
and April 2009, we interviewed these CIOs, who represent different sizes
of organizations in 78 countries and 19 industries.1
Our analysis used 2004-2007 profit before tax (PBT) growth, relative to
peers in their industries, to associate organizations with one of three
growth levels: High, Medium or Low. For organizations where this
information was not available, we used statistical correlation to assign
levels, based on closest overall similarity of answers.
About the IBM Institute for
Business Value
The IBM Institute for Business Value, part of IBM Global Business
Services, develops fact-based strategic insights for senior business
executives around critical industry-specific and cross-industry issues.
Browse through our research library at ibm.com/iibv.
Acknowledgements
Charles Vincent, Vice President & Partner, Distribution & Industrial Sector
Leader and Travel & Transportation Industry Leader, Growth Markets
Eric Conrad, Vice President & Partner, Travel & Transportation Global
Industry Leader
Salima Lin, Associate Partner, Global Strategy and Market Development
Special thanks to Yuri Karadjov for his contributions and support.

19. Travel and Transportation Executive Summary 17
Notes and Sources
1 CIOs we interviewed in the following countries were counted in the Growth Markets category:
Argentina, Australia, Bahrain, Brazil, Cameroon, Chile, China, Colombia, Croatia, Czech
Republic, Ecuador, Egypt, Gabon, Georgia, Ghana, Guinea, Hong Kong, Hungary, India,
Indonesia, Malaysia, Mexico, Morocco, New Zealand, Nigeria, Pakistan, Peru, Philippines,
Poland, Qatar, Romania, Russia, Saudi Arabia, Singapore, Slovenia, Slovakia, South Africa,
Taiwan, Thailand, Tunisia, Turkey, Uruguay, Venezuela and Vietnam. The Western Europe
category includes CIOs from: Austria, Belgium, Denmark, Finland, France, Germany,
Ireland, Israel, Italy, Luxembourg, Monaco, Netherlands, Norway, Portugal, Spain, Sweden,
Switzerland, and United Kingdom. The North America category consists of CIOs from:
Bahamas, Canada, Cayman Islands, Jamaica, Trinidad/Tobago and the United States.
Our CIO respondents represented 19 industries. The Communications sector includes: media
and entertainment; telecommunications; and energy and utilities. The Distribution sector
includes: agriculture; airlines; consumer products and wholesale; food, beverages and tobacco;
life sciences and pharmaceuticals; mail, package and freight delivery; professional services;
railroads; real estate; retail; transportation and logistics; and travel and tourism. The Industrial
sector includes: aerospace and defense; automotive; chemicals and petroleum; computers
and office equipment; electronics; energy (production and refining); engineering and machinery;
forest and paper products; industrial products; and network and other communications
equipment. The Financial Services sector includes: banking; financial markets; and insurance.
The Public sector includes: education; government and public service; and healthcare payers
and providers.

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