Enterprise CIO Decisions

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ENTERPRISE CIO DECISIONS OCTOBER 2012 1

Enterprise

CIODecisions

OCTOBER 2012 VOLUME 16

Guiding technology decision makers in the enterprise

INSIDE:

Walking theGreen Walk

WardingOff Rogue IT

Balancing

CorporateRisk andConsumerization

How Do YouSolve a ProblemLike Big Data?

Agile Practices

Wooing theBusiness

PuttingCustomersNeeds First

SecurityPoliciesor Next-GenerationITIT security threatsare evolving faster thanmanagement practicescan keep up. Hereshow to stay ahead.

x


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ENTERPRI SE CIO DECISIONS OCTOBER 2012 2

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LETTER

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WARDING OFF

ROGUE IT

BALANCING

CORPORATE

RISK AND

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HOW DO YOU

SOLVE A PROBLEM

LIKE BIG DATA?

AGILE PRACTICES

WOOING THE

BUSINESS

PUTTING

CUSTOMERSNEEDS FIRST

CONSIDER THIS SCENARIO: The IT depart-

ment, worried that certain websites

or applications will expose the com-

pany to security risks or rob the

network o bandwidth, has switched

o administrator rights on user desk-

tops, banned applications like instant

messaging and blocked websites like

Facebook, only to restore rights andaccess when users rebelled.

Its happening. When you consider

the impact o the loss o productivity

on the part o the users and IT sta in

this untenable situation, you see how

security and productivity are opportu-

nity costs, and that a balance must be

struck between the two.

This balance, the subject o this

months Enterprise CIO Decisionscover

story by Executive Editor Christina

Torode, can be described terms o

evolution. The process o how we

got to where we are today looks a

lot like the NFL reeree lockout this

all. When smartphones became de

acto corporate email clients, liber-

ated users elt like the NFL players

without the real res: They would tryto get away with whatever they could.

Dropbox, YouTube, anything goes

until someone uploading video to the

Internet causes the network to crash,

and IT has to start throwing penalty

ags all over the place.

Users are too ar down the road o

newound productivity gains to be

able to exist in the world o limited

access, so IT has to create policies

that work with the users, enable

device and application reedom, and

still cover their risk management and

compliance bases.

Terri Tyler, IS ofcer or the Los An-

geles Metro Transportation Authority,gets it. I always tell users to come to

me beore they decide to use a new

device or service so I can explain the

risks and educate them on acceptable

use policies, she told Torode. Talk-

ing to people, not making a big deal i

they do make a mistake, saying, I can

do that or we have that service will

encourage them to come to you be-

ore they start using something new.

When planning your consumeriza-

tion productivity vs. security strategy,

recall the upheaval that the shit to

PCs and client/server caused every-

one. We are in the middle o a similar

transition. New ways o doing things

must be discovered, and its going

to come down to people listening to

each other in order to fnd the waythrough.

Scot Petersen

Editorial Director,

CIO/IT Strategy Media

spetersen@techtarget.

com

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1 NEWS, VIEWS AND REVIEWS FORSENIOR TECHNOLOGY MANAGERS

ON THE JOB

walking the

green walk

YOU KNOW THAT song, I Was Country

When Country Wasnt Cool? Well,

I was green beore green was cool,

laughs Janet Claggett, CIO or Rich-

land County, S.C. For those o us who

have green running through our veins,

none o this is new. What is new is

there are newer and better technolo-

gies that make it easier.

Claggett not only talks the talk but

walks the walk. In act, she was pur-

suing environmental sustainability so-

lutions even beore Earth Day became

a mainstream event and well beore2008, when the National Association

o State Chie Inormation Ofcers,

or NASCIO, called or its members

to lead the charge or green technol-

ogy solutions.

By applying her personal philoso-

phy on environmental sustainability

and efciency to her work as a CIO,

Claggett has helped save Richland

County money and reduce its carbon

ootprint signifcantly.

Claggetts IT organization promotes

two rules when approaching a proj-

ect: First, do no harm; then, look or

the green technology solution.

I with every project, you think

about that on the ront endwhich I

ask my team to do, then youre al-

ways on the lookout or that oppor-

tunity to fnd a sustainable solution,

Claggett said. I do believe the CIOs

role should include such a commit-

ment. I we embrace a strategy that

strives to make things better or u-

ture generations, we will make better

decisions.Its that mode o thinking that put

Claggetts department in perect posi-

tion to share in a U.S. Department o

Energy Energy Efciency and Com-

munity Block Grant (EECBG) in 2010.

With the grant money, she hired two

contractors to round out her project

UF

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team as it ocused on creating a Web-

based e-recording system or the

countys Register o Deeds.

The sotware system allowed

citizens, attorneys and abstractors

to fle documents and record deeds

from their homes or ofces 24/7. This

reduced trips to the Register o Deeds

ofce, saving uel and paper, as well

as time. The county estimates the

system is saving residents $174,000

per year, based on 75,000 transac-

tions annually, average mileage, and

the cost o gas and parkingbeneftsthat now reach beyond Richland.

Its really providing this type o

beneft to attorneys across the coun-

try who want to do land transactions

and recording o deeds in our state,

Claggett said.

Around the same time, the or-

ganization was awarded additional

community block grant unds rom

the EECBG to put toward a server

virtualization project that was in

progress already. The grant letClaggett get more aggressive with

implementation. While virtualization

projects arent always seen this way,

they are one o a ew quantifable

sustainability solutions. For every

one server that replaces fve servers,

UF

WHATS THIS?

enterprise mashup: An enterprise mashup is the

integration o heterogeneous digital data and applications

rom multiple sources or business purposes. An enter-

prise mashup is also sometimes known as a business mash-

up or, less precisely, as a data mashup. A mashup is created

rom modular components that the end user can assembleand reassemble as desired to serve current needs. In an

enterprise mashup, the product is typically a combination

o internal corporate data and applications with externally

sourced data, SaaS and Web content.SOURCE: WHATIS.COM

The county esti-mates the systemis saving residents$174,000 per year.


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ON THE AGENDA

morphing the cio roleWhat technology has the most potential to fundamentally change the role of the CIO?

Cloud computing

On-demand computing

Mobile technology

Business intelligence

Shared services

Social media/collaboration

Virtualization

Web services

Other

SOURCE: TECHTARGETS 2012 ROLE OF THE CIO SURVEY, WITH 629 RESPONSES TO THIS QUESTION; PERCENTAGES DO NOT TOTAL 100.

0 10% 20% 30% 40% 50%

UF

we computed an 80% energy savings

and reduction o our tons o carbon

emissions, she said.

Green projects extend outside the

IT department as well. When the

county acilities department received

its own grant to replace all o the

countys lighting fxtures and add tim-

ers and movement controls, Claggett

was eager to help. The project, poised

to reduce energy use in county build-

ings by 30%, involved a great deal

o inrastructure work. Its the sort o

outside-the-data-center project withwhich her organization loves to get

involved, she said.

We were running all the network

cables to connect the lighting control-

lers rom oor to oor and back to

the main network switching inra-

structure; we installed the virtual

servers; we did a lot o technical inra-

structure to help roll out that project,

Claggett said. It may sound boring to

some, but its all part o being green,

doing the right thing and saving

money. KAREN GOULART

Its all part obeing green, doingthe right thing andsaving money.

JANET CLAGGETT

CIO, Richland County, S.C.


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ONE ON ONE

warding off

rogue IT

NAME:Rick Roy

TITLE: Senior vice president and CIO

TIME IN THIS ROLE: Four years

ORGANIZATION: CUNA Mutual Group

HEADQUARTERS: Madison, Wisc.

EMPLOYEES: 4,000

Rogue IT? Not a problem at CUNAMutual Group in Madison, Wisc., where

the focus is on aligning IT with business

strategy and building strong, tacti-

cal partnerships between

departments. In this inter-

view, Rick Roy, senior vice

president and CIO at CUNA,

describes how technology

serves business, why the

company continues to develop apps

in-house and how he avoids IT surprises

through a solid governance program.

How are you using technology

to serve your business strategy?

Were really using technology to en-

able the business strategies we have

in our various business lines and

product areas. We do that two ways:One is to use technology to enable

employees to work better, aster,

smarter, more collaboratively. Thats

more o an internal view. The external

view, the outside-in view, is how can

we use technology, like some o the

mobile technology today, to actually

serve up our products on the mobile

devices or the actual consumer? We

have examples o both. One is more

o an internal productivity play, and

the other is [to] serve up an app,

available via your Droid or iPhone, to

consumers that helps them through

a transactionand, by the way, helps

them buy one o our insurance prod-

ucts in a more seamless way.

Are you developing that app

in-house, or are you shopping that

out to an outsourced developer?Our approach, to this point, with

regards to apps has been to develop

them in-house. I think the big ques-

tion outstanding is i the number o

apps explodes, that will not be practi-

cal. So we are actually in conversa-

tions with our labor partners, our

strategic partners, people we use or

doing labor work on our behal, ask-

ing what their capability is to adjust

if that demand does go up. Given our

business, it is not clear to us whether

that will actually explode in the num-

bers, or i it will have relatively low

numbers. I it stays pretty small, we

will continue to develop apps in-

house.

What technology are you mostinterested in exploring in the

next 18 to 24 months?

I think that the technology that most

o us are watching really closely is

how the very cloud-based solutions

can provide an alternative to solu-

tions we are running in-house. So,

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to me, cloud is not a technology, per

se, but a delivery vehicle. And yet, it

is one o the areas that can be most

compelling in terms o us being able

to oer a dierent value proposi-

tion rom IT to our customers. While

certainly things like mobility and the

innovation curve are vertical, and we

are watching that very closely, the

reality is that its a vertical innovation

curve, so no one is really quite sure

where that is going to land.

Specifcally with cloud, especially

with the Sotware as a Service-typeoering, while there is plenty o inno-

vation there, it is something you can

attach a strategy to and think about it

as a two- or three-year timerame in-

stead o a one-year timerame. Inside

CUNA Mutual, we have deployed a

number o cloud-based solutions and

have had great success doing that.

We dont think it is a silver bullet, but

we also think it can be a very compel-

ling alternative to running all o these

applications within our own data

science environment, as many o us

have done historically.

Have you had any experience

with rogue IT?

We have only had some minor ex-

amples o what I would call rogueIT, especially related to the cloud. I

attribute that to two things. One is

we have our teams really embedded

in the customer groups they serve,

so they generally have a really strong

eel and pulse o what the customer

is thinking and what they are contem-

plating doing. So that alignment, to

use a really overused word, is really

your frst line o deense. The second

is we are pretty particular, and very

deliberate in communicating within

the company, who is authorized to

enter into technology-related con-

tactsand that is a really small list,

starting with me. And cloud-based

contracts are every bit o a technol-

ogy contract, just like a sotware

license would be. So we dont lead

with that governance hammer; we

lead with alignment and partnership.

Hopeully we wont have to pull outthe governance hammer, because

obviously that is not how you want to

work with your customers day-to-day.

The combination o these two has

worked pretty well or us.

WENDY SCHUCHART

UF

Cloud is not a tech-nology, per se, buta delivery vehicle.And yet, it is one othe areas that canbe most compellingin terms o us beingable to oer a dier-ent value proposi-tion rom IT to ourcustomers.


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1 BALANCING CORPORATE RISKAND CONSUMERIZATION

WHEN IT COMES to consumerization

whether youre reerring to social me-

dia, mobile devices, cloud services or

all of the above99.9% of employees

will use common sense in considering

data security policies and inorma-

tion sharing, believes Dave Trigo, vice

president and corporate CIO at The

Hanover Insurance Group.

But, its that .1% that can kill you,

Trigo said.

Terri Tyler, inormation security o-

fcer at the Los Angeles Metropolitan

Transportation Authority, has similar

aith in her user base. For her, educat-ing users about the risks o Facebook,

Twitter or an Android smartphone go

a long way toward not having to make

major changes to security policies in

light o consumerization.

I always tell users to come to

me beore they decide to use a new

device or service so I can explain the

risks and educate them on acceptable

use policies, she said. Talking to

people, not making a big deal i they

do make a mistake, saying, I can do

that or we have that service will en-

courage them to come to you beore

they start using something new.

Talk to an inormation security o-

fcer in charge o a heavily regulated

company like deense and aerospace

systems maker Raytheon Co. about

the use o cloud services or mobile

devices, however, and that .1% that

can kill you skyrockets.I dont think you can go with say-

ing [to auditors] that we educated

our users about our security poli-

cies. Legally its not deensible, said

Michael Daly, corporate director o

inormation technology security at

Raytheon. We need to do more due

BalancingCorporate Riskand ConsumerizationIT executives are walking a tightrope to balance the

productivity gains of social, mobile and cloud services againsttheir quite-real security risks. BY Christina Torode


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1 BALANCING CORPORATE RISKAND CONSUMERIZATIONdiligence, to the extent o being able

to explain what we do to enorce [a

security policy], how we measure

compliance andwhen we discover

that someone is out o compliance

how we handle that.

SPEAK SOFTLY BUT CARRY

A BIG SECURITY STICK

Trigo does have aith that users will

do the right thing, but that doesnt

mean he doesnt have a data security

arsenal on the back end. His multi-pronged security strategy is ar-

reaching, but it doesnt put the onus

on the user, but on the vendor.

Trigo and his chie architect worked

with Sotware as a Service vendors to

develop single sign-on or the many

SaaS applications used by Hanovers

5,000 employees. And when a user

does attempt to buy a cloud service

directly rom a vendor, Trigo has the

network set to block the use o that

service.

We have excellent relationships

with the business, so they usually

come to us to review a vendor and

the contract beore they buy some-

thing, but we also have a frewall and

a central contract group that reviews

all technology contracts beore a ser-viceinside or outside o our walls

can be bought, he said.

Trigo is pretty comortable keeping

large amounts o inormation in the

cloud, whether with Microsots host-

ed Exchange service or Salesorce.

com, based on the due diligence that

goes on behind the scenes, he said.

One breach could ruin us, so beore

we engage in a contract, we ask how

[the vendor] does backups, what they

have for DR (disaster recovery), what

their security posture and capabilities

are, who is responsible should some-

thing happen. Contractually, we make

sure we are covered very well.

When signing with a new service

provider, Tyler writes into the contract

the right to audit the vendors sys-

tems and examine their logs to see

how they are coding; on the ront end,she has workstations set up or timed

lockdowns i a user is careless.

But she also puts some of the se-

curity burden on business managers,

in some cases asking them to sign

a disclaimer i they want a service

despite warnings rom IT not to use it.

Humor is the best weapon and thats

how I approach it i they still want to

use something ater I explain the pos-

sible ramifcations and tell them its

not a good idea, she said.

FOUR WAYS TO MANAGE

MOBILE DEVICES

Because employees want to be able

to use their iPads or Android devices

to get their job done, theyre verywilling to sign acceptable-use agree-

ments, which oten give IT the right

to wipe their device clean, said John

Pescatore, vice president and distin-

guished analyst at Stamord, Conn.-

based consultancy Gartner Inc.

Ive had CIOs and CISOs say,


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1 BALANCING CORPORATE RISKAND CONSUMERIZATIONThere is no way that Ill get employ-

ees to download a sotware agent

on their mobile device or sign an

agreement giving us the ability to

wipe their device, but that is untrue,

Pescatore said. I you give employees

the opportunity to use their avorite

toy, they are willing to compromise.

Even the largest enterprises, including

a $1 billion low-tech manufacturer,

have had no problem getting thou-

sands o employees to abide by such

bring-your-own-device (BYOD) rules,

he said.

Hanover Insurance Groups BYOD

program supports Blackberrys, iPads

and iPhones or business use and has

very straightorward rules o engage-

ment or its program. Employees

must download a mobile device man-

agement (MDM) agent on the deviceto access emails and calendars. I

they leave the company, corporate

data is wiped clean rom that device.

All they have to do is go to a website

to request the [MDM agent] down-

load, and security policies are pushed

down to the device, Trigo said.

Pescatore said enterprises have

our main approaches to consider or

securing employee-owned devices:

nA heavy-handed approach that is

server-based. To gain access to com-

pany inormation, the device user

must use a Citrix Receiver on his or

her device. Its very secure, and

users hate it, he said.

nA little less Draconian approach is

virtual desktop infrastructure (VDI),

wherein users have to run VMwareView on their iPads when connecting

to work programs, or example. They

have to use a locked-down image that

IT controls, but they can at least work

oine, he said.

nThen, there is what Pescatore calls

the middle-o-the-road approach,

where an MDM agent is loaded onto

the device. Enterprises take on some

risk, and employees have to do some-

thing, but or the average enterprise

this is a workable approach, he said.

nThe fnal approach is a bit o a ree-

or-all, where the thinking is, OK,

these devices are secure enough

because the mobile device maker

has made them secure enough, butI dont think theres much hope or

that model in the enterprise. It didnt

work with Microsot and Windows,

he said. [Mobile device makers] are

driven by consumernot business

demands, so they arent ocusing

on security.

A little less Draco-nian approach isVDI, wherein usershave to run VMware

View on their iPadswhen connectingto work programs.


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1 BALANCING CORPORATE RISKAND CONSUMERIZATIONThe best approach, Pescatore said,

is a mix o an MDM agent or access

to less-sensitive data and a Citrix

Receiver or access to more-sensitive

data.

THE SOCIAL MEDIA

SECURITY CONUNDRUM

From a security perspective, its a bit

easier to control employee-owned

mobile devices than it is to constantly

monitor social media access and

usage. Questions abound, rom whois liable should an employee tweet

sensitive company inormation to

what is the business case or allowing

employees to use Facebook during

work hours.

I think you have to build a whole

new set o security policies and test

them in a legal ramework or [social

media, cloud services and mobile de-

vices], said Raytheons Daly. Then,

there is the whole liability issue.

[In one case], the government sub-

poenaed Twitter or deleted tweets

[produced by an Occupy Wall Street

protester]. That is a perect example

o how data in the cloud is outside

your control. Ater all, the subpoe-

nas, and Twitters response to some

o them, make it clear that you dontown your tweets.

Trigo is more interested in how

social media platorms like Facebook

can be used than in how access to

them can be blocked; as such, Ha-

nover employees are allowed to use

Facebook at work.

I heard about a 15-year-old girl

who set up a Facebook page ater a

tornado to use as a communication

vehicle with the Red Cross and fnd

amily members, Trigo said. Should

we do that? Could we run a busi-

ness rom [Facebook]? How to use it

and what to use it orthose are the

things that really need to be thought

through.Three years ago, the U.S. Depart-

ment o Deense said it was consider-

ing blocking all social media access,

stating that military members were

giving away too much inormation

including their locationwhen com-

municating with their social networks.

The next day, the Marines put out

a [press] release saying that they

had exceeded their recruiting goals

because o the use o social media,

Pescatore said. So, you had one

side blocking it or security reasons,

and another promoting it because it

helped their business. Guess which

side won?

The Department o Deense now

operates its own Social Media

Hub.

Christina Torode is executive editor

for SearchCIO.com. Write to her at

[email protected].


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2 HOW DO YOU SOLVE A PROBLEMLIKE BIG DATA?

BIG DATA IS oten defned as data that

is too large to process by traditional

means. The volume o big data, its

velocity and the varietyall o that

unstructured data pouring inmake

it a bad ft or traditional database

technologies. The issue o value adds

a ourth vto the attributes that make

big data problematic or traditional IT

shops.

Finding patterns and correlations

in big data that could yield business

insights requires new kinds o IT ex-

perts, rom statisticians to so-called

data scientists. Big data is difcult tocorral and difcult to capitalize on.

Yet, i the growing consensus among

business gurus is correct, extract-

ing business value rom big data will

mean the dierence between industry

superstars and mere survivors.

We are going to see companies

that start on this learning curve

sooner accelerate their gains, said

Michael Chui, a principal at the

McKinsey Global Institute and au-

thor o a massive McKinsey report

on the value o big data. Collecting

and analyzing large data sets is al-

ready driving changes in health care:

The McKinsey research predicts that

health care could reap up to $300

billion in value rom the eective use

of big data, including $200 billion in

reduced spending.

James Noga, CIO at Partners

HealthCare System, a Boston-basedhealth care nonproft, said he is al-

ready seeing how the voluminous

data now being collected by emer-

gency rooms will be aggregated and

analyzed or patterns that could lead

to huge breakthroughs, including

the ability to better predict adverse

How Do You Solve

a Problem Like

Big Data?Theres a growing consensus

among business experts that extracting value from

big data will be a deciding factor in which businessesstay on top and which just get by. BY linda tucci


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2 HOW DO YOU SOLVE A PROBLEMLIKE BIG DATA?drug reactions. Pointing to the drug

Vioxx, whose users were shown to

experience a higher rate o heart

attacks and strokes than those tak-

ing a placebo, Noga said, We know

that even with our small data set, we

could have detected the problems

with Vioxx a year before it came to

light i we had been doing the right

analytics.

The gains rom mining big data

are hardly limited to felds like the

health care industry, where research

scientists are used to dealing with

large data sets, or the retail sector,

which has been collecting and buy-

ing customer data or decades, said

Tom Davenport, a visiting proessor

at Harvard Business School and the

author o many books on analytics.

Based on his recent work with

industrial frms, Davenport is con-vinced that big data and analytics will

help turn around U.S manuacturing.

Machines and devices o all kinds

throw o tons o data just waiting

to be mined, he said. You can use

analysis to show when things need to

be fxed, and when parts get created

in an optimum way, he said.

Logistics companies are also hot on

the trail o big data. The voluminous

exhaust data collected on supply

chains is being analyzed or economic

predictions, rom retailer optimism

about the Christmas season to the

impact o political uprisings on oil-

rich countries.

FALLING BEHIND ON BIG DATA

For all o its promise, however, big

data presents a big challenge ormost companies and their CIOs. In a

recent report rom the nonproft in-

dustry association CompTIA, 63% of

IT and business executives said they

dont have a frm grasp o the concept

o big data.

The 44-page Big Data Insights and

Opportunities report, based on two

online surveys of some 500 IT and

business executives in July, makes it

clear that companies are hyperaware

o the importance o being able to

manage and analyze big data. Two-

thirds o respondents, or example,

strongly agreed with the statement

I we could harness all o our data,

we would be a much a stronger busi-

ness. Participants in the CompTIA

study cited lower productivity, lacko business agility, internal conusion

over priorities and reduced margins

due to operation inefciencies as the

top negative consequences o being

unable to manage and analyze big

data.

Few companies are where they

For all o its

promise, big datapresents a bigchallenge or mostcompanies andtheir CIOs.


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2 HOW DO YOU SOLVE A PROBLEMLIKE BIG DATA?want to be in managing and using big

data, the study ound. Respondents

said they all short on analyzing Web

patterns (80%), measuring email

campaigns (85%) and monitoring

social media (88%). Unstructured

datathe audio and video fles and

social streams o data that dont eas-

ily ft into the traditional databases

is passing them by.

Shvetank Shah, executive direc-

tor of The CEB, a Washington, D.C.,

technology consulting frm, said that

workorces, by and large, lack therequisite mental habits to use big

data and analytics to drive busi-

ness decisions. In its recent study o

roughly 500 companies, CEB found

that one-fth o employees go by gut

instinct when making business deci-

sions; about hal o all employees

over-trust data; and about one-third

are what CEB calls informed skep-

tics, or people who can blend judg-

ment with data to drive the business

orward.

The good news? Companies are

making a concerted eort to get their

arms around big data, according to

the CompTIA study. Over the next

two years, 41% of large companies

plan on hiring new employees to meet

the data analysis and business intel-

ligence requirements to leverage big

data, while 39% plan to use outside

consultants or vendors.

Linda Tucci is news director for SearchCIO.com.

Write to her at [email protected].

Over the next twoyears, 41% o largecompanies plan onhiring new employ-ees to meet the dataanalysis and busi-

ness intelligencerequirements toleverage big data.


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3 AGILE PRACTICES WOOING THE BUSINESS

LONG-TIME AGILE project-manager-

turned-project-trainer Joseph Flahi,

president and CEO at Whitewater

Projects Inc., has noticed a new crop

o students trickling into his classes.

One client is in marketing and sales

and wants to fgure out how to use

Agile methodologies to solve prob-

lems with the way projects are being

run in his organization. Another client

works in a logistics environment ship-

ping goods, and is trying to fgure out

how to use Agile to do that.

People are looking at Agile andsaying, Hey, theres a lot o success

around it and a lot o buzz around it,

so how can we apply it? Flahi said.

But, at the same time, they need to

ask, Where are the problems that

were experiencing and how can we

resolve them?

Before employing any methodol-

ogy, the people in charge must fgure

out their departments and companys

value propositions and how theyre

measured, and then look at what is

slowing the delivery o that value,

Flahi said.

For British Airways PLC (BA), eco-

nomic necessity spurred the London-

based airline to adopt Agile practices,

believing they would speed up and

deliver new business value.

During the economic slowdown

in 2008, a focus on generating newrevenue led us to using Agile to both

drive the business proposition and

develop IT, said Mike Croucher, head

of IT architecture and delivery at BA.

Agile practices allowed BA to develop

new services, as well as make chang-

es to existing programs. Oten, the

AgilePracticesWooing the BusinessEnterprises are relying on Agile practices to create

new services and improve project managementacross business lines. By christina torode


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payback period or these investments

was less than a month.

The airline recently launched an

iPad application or its cabin service

directors to give them up-to-the-min-

ute inormation on the preerences o

executive club members. The applica-

tion went rom idea to production in

90 days using Agile practices.

Early demos o the application were

given to the service directors, and

their eedback played a key role in

the ultimate design. These directors

in turn gave direct feedback to BAsbusiness leadership team, which in

turn reinorced the positive view o

the project and IT delivery, Croucher

said.

The concept behind BAs Agile

practices is to go live with a minimal

set o unctions to derive an early

ROI, Croucher said. The process also

prioritizes requirements by value.

Projects are stopped once the major-

ity o the agreed-upon benefts are

achieved. Then the Agile team moves

on to the next idea.

AGILE PRACTICES AND

BUSINESS ALIGNMENT

Agile and lean are the frst practices

Ive seen in 20-plus years that aretruly helping to solve the business-

IT alignment issue, said Alex Ad-

amopoulos, CEO at New York-based

Emergn, an Agile and lean consulting

rm whose customers include BA,

Standard Life PLC and British Tele-

com. For the past two years, hes

seen Agile practices move beyond

sotware development into corporate

project and portolio management,

he said.

This movement, in turn, has led

CIOs to become more involved in

project management discussions.

The CIO is spending more time with

business heads and portolio heads,

becoming a true partner to them, ver-

sus [IT being] a cost center, Adamo-

poulos said.

The benefts o combining Agile

practices with lean methodologies

are becoming so pronounced that one

day a new term that encompasses

both will emerge, according to For-

rester Research Inc. It makes sense,

said Dave West, vice president andresearch director at the Cambridge,

Mass.-based consultancy. I youre

doing [an Agile] sprint o only three

weeks, you bet you have to reduce

waste, and you bet you have to econ-

omize the amount o unctionality, the

delivery and the code writing. Its a

Agile and lean arethe frst practicesIve seen in 20-plusyears that are trulyhelping to solve thebusiness-IT align-

ment issue.ALEX ADAMOPOULOS

CEO, Emergn


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natural segue rom Agile to lean.

General Electric Co.s Software

Solutions Group (SSG), which is

replacing a mix o sotware develop-

ment methods, including waterall,

with Agile practices, appreciates the

connection. Its next step is interject-

ing lean into the process, not only or

sotware development but also across

such other GE business lines as the

engineering division, said Paul Rogers,

executive manager of SSG. Weve

gotten a lot out o Agile, but it is lean

that makes you hyperproductive.Lean optimizes the whole liecy-

cle o work, Adamopoulos said, and

its goal is to remove as much waste

as possible. Combined, Agile and lean

will ocus a project on three things:

nValue, to ensure that the team is

working on the right projects.

nFlow, so the team is working on the

right projects, in the right order.

nQuality, to make sure that quality is

built in early enough in the process.

Value, ow and quality [together

are] a means o defning Agile and

lean, and many o the practices are

synonymous, even i the terms dier,Adamopoulos said. In the lean world,

they use the term kanban board. In

the Agile world, its called a story

board, but theyre identical. Its a big

wall with our columns and Post-its.

Whether applied to the sotware

development liecycle or to the proj-

ect development liecycle, Agile prac-

tices, combined with lean, allow or

midcourse project corrections, which

are difcult to achieve with traditional

project management approaches.

They also simpliy release cycles

through iterations, and reduce waste

and complexity.

Companies should be prepared,

however, or a rough ride initially. The

other side o the Agile-lean coin is

culture shock. Business and IT groups

might have a hard time adjusting to

monthly or even weekly releases o

new eatures. Lean practices will rein

in Agile release cycles, but gover-

nance is needed too. Accordingly, BA

and GE both have a governance planin place, in some orm or another.

Christina Torode is executive editor for

SearchCIO.com. Write to her at ctorode@

techtarget.com.

Agile practices,combined with lean,allow or midcourseproject corrections,which are difcult

to achieve with tra-ditional project man-agement approaches.
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4 PUTTING CUSTOMERS NEEDS FIRST

TO SEE ONES customers clearly, organi-

zational leaders must develop a clear

vision o whom they serve. At Aetna

Inc., a 160-year-old Hartford, Conn.-

based company, that required a radi-

cal shit in how the business viewed

its bread and butter: health insurance.

Previously, company leaders elt

the health insurance industry was

based on business-to-business trans-

actions. Recently, they realized the

advantagesreally, the necessityo

making sure customers has access

to as much inormation as possible,

leading to better decisions aroundhealth care.

Aetnas actions are part o a larger

trend o enterprises ostering a com-

bined technology and marketing

strategy. Rather than leaving custom-

ers shouting into the void, IT and

marketing are increasingly working

together to bring customers closer to

the business.

Aetna oresaw that shit our years

ago, when discussions with the CEO

led to the ormation o a technology

and marketing strategy at the core

o which was a commitment to put-

ting technology into the hands o

customers.

The challenge o bringing usable

inormation directly to consumers

meant tackling a 10-year-old infra-

structure that Aetna CIO Michael

Mathias called redundant, complex

and inexible. While the process isongoing, the inrastructure now is

integrate-able, extendable and scal-

able built-in, not built on, he said.

At the heart o this, SOA was the

buzzword; we made it work in a big

way.

As a result, Aetna continues to add

PuttingCustomersNeeds

FirstIT must work with marketing to develop Web services

that bring customers into the fold. BY karen goulart


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eatures to its interactive member

website and mobile app. Users can

access insurance cards and mobile

records; fnd the costs o plans and

surgical procedures; and even query

David, a virtual benefts adviser,

about health plans.

David is the direct result o a work-

ing technology and marketing strat-

egy at Aetna. Marketing identifed a

disconnecthuman resources sad-

dling employees with a bulky packet

o health insurance inormationthat

oten caused members to avoid pick-ing a plan. What i employees could

just hop online, answer a ew ques-

tions and get quick answers?

Its about understanding the prob-

lem and putting the technology be-

hind it, Matthias said.

ENGAGING CUSTOMERS

THROUGH TECHNOLOGY

Technology is contributing to a un-

damental shit in the way customers

engage with businesses and consume

their products and services, according

to Glenn Schneider, CIO at Discover

Financial Services in Riverwoods, Ill.

He aims to address this head-on by

orming an alliance with marketing,

e-business and other groups withinDiscover, he said.

We need to start building an

ecosystem, a marketplace. We need

to look at how we can converge

solutions so that we unction much

more as an aggregator o services,

Schneider said. People dont want to

have to go elsewhere, and we need

to make Web services available to

create that convenience or the cus-

tomer.

Version 1.0 of the technology and

marketing strategy alliance began

when Discovers IT department was

renamed the business technolo-

gy [BT] department, said Harit Tal-

war, president o the companys U.S.

Cards division.

Its not IT, its BT, and that seems

very trivial but it isnt, Talwar said.

It was a crucial frst step that curbedantagonism between the business

and IT in the name o enlightened

sel-interest, he said. That simple

change opened the door to partner-

ships between departments and lead-

ers like Talwar, Schneider and Vice

President for E-Business Mike Boush.

Those have allowed Discover to be-

come customer-obsessed, Talwar

added.

I think people are underestimat-

ing what it takes to succeed in this

marketplace, Talwar said. Theres

not going to be high ground in this

economy or long. There are market

pressures or [technology and mar-

keting] to work togetherotherwise,

we cant deliver more choices and

better services to customers.Its as simple and complex as look-

ing at what a customer does in real

life and making it virtual, Boush said.

Think about a customer paying a bill,

and the inormation he needs to carry

out the taskthe amount due, the

balance. Then imagine the customer


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gathering up the paperwork, the

checkbook, the envelope, the stamp.

O course, online bill paying is so

commonplace now as to be pass. Its

here where marketing provides the

next need or technology to ulfll. In

Discovers case, its the recent sot

launch o Money Messenger, an app

that lets customers use their cards to

do typical cash transactionspaying

the babysitter or reimbursing a riend

the $20 you owe himthrough Dis-

covers partnership with PayPal.

CLOSING THE GAP BETWEEN

TECHNOLOGY AND MARKETING

No enterprise with a successul

IT-marketing partnership got there

without someone taking the frst step.

It sounds obvious enough, but the

institutionalized discord between the

two departments is enough to make

that step eel like a giant leap. For-

rester Principal Analyst Je Ernst, a

ormer chie marketing ofcer, said

he understands the hesitation.

What makes it hard is where

theyre coming rom. History is their

biggest obstacle, Ernst said. Expec-

tations are super-high; theyre shaped

by the digital experience customers

are having with other companies, andit raises the bar. I youre not doing

the disrupting, youre going to be

disrupted.

Karen Goulart is features writer for SearchCIO.

com. Write to her at [email protected].

Enterprise CIO Decisionsis a

SearchCIO.com e-publicaton.

Rachel Lebeaux

Managing Editor

Linda Koury

Director o Online Design

Scot Petersen

Editorial Director

Christina Torode

Executive Editor

Linda Tucci

News Director

Wendy Schuchart

Site Editor

Karen Goulart

Features Writer

Corey StraderDirector o Product Management

[email protected]

TechTarget USA

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