The Buzz behind the Buzzwords

1
Todays IT Leaders Shaping The Information
Agenda for 2000 and Beyond
Maryfran Johnson, Editor in Chief
2
A View from the CIOs 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
• Tomorrows IT Leaders will be business-people
  with an IT specialty

3


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.

Francis Dramis, Exec VP/CIO, BellSouth Corp.
4
The Business

• Greater enduser responsibility for IT work
• IT working more seamlessly with business units
• Centralized management of infrastructure

5
Say to yourself My business over the next five
years will change.
GartnerGroup CEO Manny Fernandez
6
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

7
Most companies have now faced the inevitable
Customers rule.
Jim Champy, Computerworld columnist and
chairman/consulting, Perot Systems Corp.
8
(No Transcript)
9
and eyes on the IT customers within your
companies, as well
10
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)

11
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)

12
Fully 50 of 340 CIOs in a Korn/Ferry study saw
Y2K as a blessing in disguise -- drawing
attention to ITs importance to the company
13
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
14
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

15
The Technology

• Smaller, simpler, smarter devices
• Net-enabled applications tied to business
  success
• Computing becomes increasingly mobile and
  pervasive

16
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!

17
Focus your strategy on customer retention
Michelle Banaugh, senior VP of E-commerce, Wells
Fargo
18
Trend Watch/The Web

• Personalization, customization
• Intelligent networks (Java/Jini)
• Open source providing real business value (Linux)
• Technology standards matter again

19
The Internet changes everything... You may not
like the direction its taking your company or
industry, but denial wont stop it
Don Tapscott, CW columnist, 3/29/99
20
Trend Watch/The Network

• Enterprise-wide network connections become as
  vital as the network itself
• Application-aware networking and smart
  networks will prioritize data

21
Trend Watch/Applications

• Critical tools Middleware, collaboration, object
  development
• The virtual corporation struggles to support
  mobile users and telecommuters

22
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

23
100 Million PCs Today
600 Million Smart Devices and Info Appliances
by 2003?
24
The PC era is overit has been supplanted by the
network
IBM CEO Lou Gerstner, letter to investors, 3/99
25
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

26
The People

• IT leaders becoming business technologists
• Acting as systems integrators, project managers,
  profit-enablers
• Consultants crossing the IT fence in both
  directions

27
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

28
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
29

• Information Security Specialists (70-110k)
• Database Administrators (other than Oracle)
  (45-90k)
• Client/Server Developers Architects (38-85k)
• Project Managers (80-140k)

30
Good IT professionals can always find more money
elsewhere.
Robert Reeg, VP, systems development, MasterCard
Internatioal, Inc.
31
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

32
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

Computerworlds 13th Annual Salary Survey, 9/6/99
33
Trend Watch/Outsourcing

• 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
Gartner Group
34
Some of the best IT professionals in the future
may not come from technology at all.
Fred Matteson, EVP/ IT Services, Charles
Schwab
35
Trend Watch/CIO Status

• CIOs role changes
• from implementation to strategic development
• CIOs resume changes
• to include finance, marketing and planning
• CIOs involvement changes
• to greater involvement with external customer
  support

36
We want to be the people who know how everything
works, everywhere in the company.
Peter Dupre
CIO, W.B. Mason
37
Women in ITRounding Up The Usual Suspect
Statistics
38
Enrollments are dramatically increasing for
computer science degrees awarded to womenBut
the percentage of women seeking such degrees is
dropping
Computerworld, 1/18/99
39
In 1984, women earned 40 of bachelors degrees
in computer science.By 1996, that number was
27.5.
National Science Foundation, and U.S. Dept. of
Education
40
The percentage of women in IT has shrunk from 35
in the early 1990s to 29 today
U.S. Dept. of Labor statistics
41
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
42
But does all that matter anymore?
43
It used to be that if you wanted to advance as a
woman in technology, you needed to be a
scientist. You dont today.
Judy Estrin, CTO/Senior VP, Cisco Systems, July
1999
44
Female computer engineers are actually faring
better than men. They earn an average of 79,000
annually while men average 75,000
Institute of Electrical and Electronics Engineers
report, 6/99
45
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
46
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
47
What makes them stay?

• Programs that focus on individual career
  development
• Availability of training programs
• Greater flexibility in project schedules

48
Finally, a few inspiring words from former Vice
President Dan Quayle
49
I am not part of the problem. I am a
Republican.
50
If we dont succeed, we run the risk of failure
51
The future will be better tomorrow
52
Public speaking is very easy.