CIO Straight Talk - Issue 2 - 25

his should not come as a surprise to someone in our line of work, but amid the relentless day-to-day demands made on a CIO, it
is easy to forget:
Information technology is the heart of most
businesses these days.
Almost everything a business does to serve customers,
create new offerings and manage costs of products and
processes is now hugely dependent on how intelligently
we use IT.
This means that IT executives can – and should – be
thought leaders within their organizations, helping to
define and deliver new ways in which to compete, satisfy
customers and, ultimately, build profit and shareholder
value. Once CIOs have embraced that role, you might as
well drop “thought” from the title and realize that they
need to be strategic and organizational leaders.
Many Web 2.0 companies would probably say that this is
obvious. Their executives – whether in business or IT
roles – are already “tri-lingual,” moving fluidly between
business strategy, operations and IT. But if you look at
large, established companies, I do not think you will find
many CIOs who would say they are there yet. For many
traditional companies, the role of a CIO continues to be
primarily – or even exclusively – focused on reliable, cost
effective IT services and the management of the IT
requirements for business-defined change.
At Xerox, we are very ambitious about making IT both a
thought leader and an execution leader. This is also one of
our criteria for working with partners, including HCL and
HCL Axon. We want partners that share that ambition
with us and help make IT a highly valued partner in
organizational leadership and strategy development.
Perhaps I feel so strongly about this because of my
unusual career path. I became the CIO at Xerox after five
years as the company’s Chief Strategy Officer. At the
same time, whatever your career path has been as a CIO,
this should be perceived as a time of great opportunity:
The future depends critically on the ability to integrate
strategy, operations and IT.
The Business Transformation at Xerox
Xerox had a near-death experience 10 years ago. The
company had lost focus on effective and efficient operations. To get out of this situation, decisions were made to
dramatically reduce debt, improve cash flow and prune
the business in order to get back to the core things that
Xerox does for customers much better than our competition. In focusing our operations, we were able to significantly improve some of the underlying processes and
business operations. As a result, the company returned
very quickly to profitability, almost quadrupling its share
price over a period of three years.

We did not stop there. During my tenure as Chief Strategy
Officer, we developed two key ideas that guide us in our
efforts to build out from our core to the new Xerox. One
was moving from heavy reliance on direct sales to a
mixed model of direct and indirect channels of distribution. The other was migrating from a hardware technology
company to a company selling both technology hardware
and related service offerings – particularly in the area of
document-intensive business process services, including
managed print services. (With last year’s acquisition of
Affiliated Computer Services, or ACS, Xerox derives 55
percent of its revenue from services.)
From Developing Strategy to Leading IT
Articulating important ideas such as these two strategic
shifts is only a part of the journey. If ideas cannot be
brought to execution, their value is wasted. We found that
many of the things that we wanted to do strategically
required us to go through an awful lot of business process
change and it became obvious that this would require a
transformation of the IT function.
We evaluated a number of different ways to strengthen the
role of IT at Xerox. Anne Mulcahy, the CEO at the time,
finally decided that because of my general familiarity with
these topics and my specific familiarity with our strategy,
I might be the best person to lead the IT organization. I
have to say, it came as a bit of a surprise to me.
Having been in the role for five years, it has been a
privilege and a pleasure to be part of the team that put
some wood behind the arrow on how we create the new
Xerox. That does not mean IT can abandon its traditional
responsibility of ensuring reliable and efficient operations. It does mean that IT needs to take the lead in coming
up with new and profitable ideas for the business.
Increasing Productivity: Multi-vendor Management
The ongoing work of IT must be perceived as affordable
and ever-improving, a means to boost the productivity of
the business. The key initiative we took on to satisfy this
objective was the development of what is now described
as a best practice in outsourcing and outsourcing management. We have struck what I think is a very good balance
between insourcing and outsourcing, distinguishing
between those tasks for which we need to have the skills
in-house – usually higher value-added roles in architecture, program management, project management and
senior operations delivery roles – and tasks where we can
use the marketplace to source a variety of other skills.
Regarding insourcing, a lot of energy went into creating a
much deeper competence at Xerox, both in tools and
techniques, as well as in personnel for projects and
program management. In terms of outsourcing, we have
decided that it is in our interest to procure services from
best-of-breed providers. Managing multiple vendors,

CIO Straight Talk //

25



CIO Straight Talk - Issue 2

Table of Contents for the Digital Edition of CIO Straight Talk - Issue 2

CIO Straight Talk - Issue 2
Contents
So What Do CIOs Want
Innovation at the Periphery
The CIO as Thought Leader
Career Move: From Managing Technology to Managing Change
Every CIO is in the Information Business
Analytics and Decision Making
Putting IT at the Center of the Customer Experience
Pick n Pay Focuses on Delivering Value to Customers
Bringing "Lean" to IT
Whither the Cloud in a Stormy IT Enviroment?
Management by Driving a Stake in the Ground
From Data Processing to Orchestrating Knowledge
Extreme Collaboration
Enterprise Mobility: Delivering the Connected Customer Experience
CIO Straight Talk - Issue 2 - CIO Straight Talk - Issue 2
CIO Straight Talk - Issue 2 - Cover2
CIO Straight Talk - Issue 2 - 3
CIO Straight Talk - Issue 2 - Contents
CIO Straight Talk - Issue 2 - 5
CIO Straight Talk - Issue 2 - So What Do CIOs Want
CIO Straight Talk - Issue 2 - 7
CIO Straight Talk - Issue 2 - 8
CIO Straight Talk - Issue 2 - 9
CIO Straight Talk - Issue 2 - 10
CIO Straight Talk - Issue 2 - 11
CIO Straight Talk - Issue 2 - 12
CIO Straight Talk - Issue 2 - 13
CIO Straight Talk - Issue 2 - 14
CIO Straight Talk - Issue 2 - 15
CIO Straight Talk - Issue 2 - 16
CIO Straight Talk - Issue 2 - 17
CIO Straight Talk - Issue 2 - Innovation at the Periphery
CIO Straight Talk - Issue 2 - 19
CIO Straight Talk - Issue 2 - 20
CIO Straight Talk - Issue 2 - 21
CIO Straight Talk - Issue 2 - The CIO as Thought Leader
CIO Straight Talk - Issue 2 - 23
CIO Straight Talk - Issue 2 - 24
CIO Straight Talk - Issue 2 - 25
CIO Straight Talk - Issue 2 - Career Move: From Managing Technology to Managing Change
CIO Straight Talk - Issue 2 - 27
CIO Straight Talk - Issue 2 - 28
CIO Straight Talk - Issue 2 - 29
CIO Straight Talk - Issue 2 - Every CIO is in the Information Business
CIO Straight Talk - Issue 2 - 31
CIO Straight Talk - Issue 2 - 32
CIO Straight Talk - Issue 2 - 33
CIO Straight Talk - Issue 2 - Analytics and Decision Making
CIO Straight Talk - Issue 2 - 35
CIO Straight Talk - Issue 2 - 36
CIO Straight Talk - Issue 2 - 37
CIO Straight Talk - Issue 2 - 38
CIO Straight Talk - Issue 2 - 39
CIO Straight Talk - Issue 2 - Putting IT at the Center of the Customer Experience
CIO Straight Talk - Issue 2 - 41
CIO Straight Talk - Issue 2 - 42
CIO Straight Talk - Issue 2 - Pick n Pay Focuses on Delivering Value to Customers
CIO Straight Talk - Issue 2 - 44
CIO Straight Talk - Issue 2 - 45
CIO Straight Talk - Issue 2 - 46
CIO Straight Talk - Issue 2 - Bringing "Lean" to IT
CIO Straight Talk - Issue 2 - 48
CIO Straight Talk - Issue 2 - 49
CIO Straight Talk - Issue 2 - 50
CIO Straight Talk - Issue 2 - Whither the Cloud in a Stormy IT Enviroment?
CIO Straight Talk - Issue 2 - 52
CIO Straight Talk - Issue 2 - 53
CIO Straight Talk - Issue 2 - 54
CIO Straight Talk - Issue 2 - 55
CIO Straight Talk - Issue 2 - Management by Driving a Stake in the Ground
CIO Straight Talk - Issue 2 - 57
CIO Straight Talk - Issue 2 - 58
CIO Straight Talk - Issue 2 - From Data Processing to Orchestrating Knowledge
CIO Straight Talk - Issue 2 - 60
CIO Straight Talk - Issue 2 - 61
CIO Straight Talk - Issue 2 - Extreme Collaboration
CIO Straight Talk - Issue 2 - 63
CIO Straight Talk - Issue 2 - 64
CIO Straight Talk - Issue 2 - 65
CIO Straight Talk - Issue 2 - Enterprise Mobility: Delivering the Connected Customer Experience
CIO Straight Talk - Issue 2 - 67
CIO Straight Talk - Issue 2 - 68
CIO Straight Talk - Issue 2 - 69
CIO Straight Talk - Issue 2 - 70
CIO Straight Talk - Issue 2 - 71
CIO Straight Talk - Issue 2 - 72
CIO Straight Talk - Issue 2 - 73
CIO Straight Talk - Issue 2 - 74
CIO Straight Talk - Issue 2 - Cover3
CIO Straight Talk - Issue 2 - Cover4
http://magazine.straighttalkonline.com/assetheavy2020
http://magazine.straighttalkonline.com/issue11
http://magazine.straighttalkonline.com/womenintech2
http://magazine.straighttalkonline.com/issue11
http://magazine.straighttalkonline.com/issue10
http://magazine.straighttalkonline.com/issue9
http://magazine.straighttalkonline.com/issue8
http://magazine.straighttalkonline.com/issue7
http://magazine.straighttalkonline.com/issue6
http://magazine.straighttalkonline.com/issue5
http://magazine.straighttalkonline.com/issue4
http://magazine.straighttalkonline.com/issue3
http://magazine.straighttalkonline.com/issue2
http://magazine.straighttalkonline.com/issue1
https://www.nxtbookmedia.com