SectIon overvIew
Implement Initiatives to Improve
Margin (Sales/Cost)
4. Leverage Technologies
Strategically to Innovate
3. Implement Initiatives to
Improve Margin
2. Understand the Business, Focus
on User Experience, and Improve
It Personnel Business Skills
1. Deliver Commodity
and Business Services
Exceptionally Well
Strategic IT Organization
Transformational Phases
With a solid foundation of delivering services exceptionally well and
personnel that understand, communicate, and demonstrate business
competencies and skills, the information technology (IT) organiza-
tion is positioned to collaborate in business teams that focus on ini-
tiatives to drive margin in the form of increased revenues or reduced
costs. ere is a reason a prot and loss statement and balance sheet
are recognized measures of a companys potential worth. is is a
the strategiC Cio
basic principle of business. e logical path then is to focus on initia-
tives that improve the company’s revenue, reduce cost, or improve the
balance sheet.
If you as a Chief Information Ocer (CIO) want to be recog-
nized as a strategic contributor to the business, you need to work with
C-Suite executives to evaluate market opportunities that will improve
the competitive position of their company. To do so requires the trust
from the business that is established by delivering services excep-
tionally well and showing that your IT personnel can demonstrate
business competencies and skills, the rst two phases of Strategic
IT Organization Transformation Phases. How do CIOs successfully
focus on initiatives to drive margin? is section of the book demon-
strates how ve (5) CIOs focused on initiatives to drive margin for
their respective company.
With an improved delivery of basic services (Phase 1) coupled
with a business-focused IT team (Phase 2), IT organizations are
poised to focus on Phase 3 and collaborate with business teams to
focus on initiatives that drive margin, both in improved revenue
and reduced costs. Included in Chapter 13—How Strategic CIOs
Focus on Initiatives to Improve Margin are success stories from ve
strategic CIOs. Following are the key questions this chapter will
1. Why is it important to focus on initiatives that improve margin
(increase revenue/reduce costs)?
2. What are the success stories of CIOs who focus on initiatives that
improve margin?
a. How did Tom Grooms, CIO at Valspar, successfully work with
business units to improve processes, reduce IT support
costs, and drive initiatives that enabled Valspar to move
forward with an aggressive growth strategy?
b. How did Randy Spratt, Chief Technology Ocer (CTO) and
CIO at McKesson, the multinational health-care services
and IT company, successfully harness a company-wide
team to develop a unied architecture, which improved
customer service and improved sales?
c. How did Clif Triplett, while CIO at Baker Hughes, drive the
development of a product life cycle management system
seCtion overview
that reduced development time for products and services
resulting in improved customer service and reduced IT costs?
d. How did Anne Wilms, while CIO at Rohm and Hass, drive
a number of strategic initiatives that increased revenue
through an improved pricing system, reduced IT costs,
optimized inventory investment savings millions of
dollars, as well as a host of other initiatives?
e. How did Steve Heilenman, CIO at CAI Inc., implement
a visibility, control, and optimization strategy to reduce IT
spend by 50% through reduced legacy support costs and
improved project management governance, while at the
same time develop a testing solution the company sells to exter-
nal customers?

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