Role of the CIO

1. Alexandra Bleitz Matthew Clabaugh Mingjie Li Choong Kwan Kang Role of the CIO

2. General information about CIOs • Issues facing CIOs • Demographics of CIOs • Turnover rate among CIOs • Business and people skills needed for CIOs • CIO Interviews (4) • CIO Panel Discussion Overview

3. Current Issues facing CIOS

4. Top challenges facing Cios N=568 Source: 5

5. Demographics of IT

6. Gender in IT • Men outnumber women in all IT 4-to-1 • Men represent 85% of IT Leaders, while women represent 15% • The number of female IT leaders are on the decline. N=568 Source: 5, 11, 18

7. Job Qualifications • Many have had degrees in computer science, software engineering, or information systems. • There is a growing demand for leaderships skills, business knowledge, interpersonal skills and strategic foresight which has taken precedence over technical skills. • Critical skills cited by current CIO’s include communicating effectively, Strategic thinking/planning, the ability to lead and motivate staff. Over half of respondents cited management/leadership skills as their primary strength. N=568 Source: 5, 17

8. The Federal CIO council developed a list of “high-level competencies” that CIO’s need. Which are to be put to use in selected institutions that train up-and-coming CIO’s. The final list came to 549 learning objectives in 12 categories. Concepts included behavioral principles, theories of motivation, visionary leadership, building expertise, performance assessment and retention. New Education for IT Leaders Source:17

9. Turnover Among CIOs

10. 2006 5 years • 2005 4 years and 11 months • 2004 4 years and 7 months Average State CIO tenure length 26 months Average UK CIO tenure length 3 years Average Tenure length of CIOs N=568 N=50 + N=350 companies Source: 5, 14, 15

11. Acquisitions and mergers • Not fitting into company culture • Groomed techie not used to management • State CIOs not the right party for the job after election (Steve Kolodney, Washington State) • Can’t overcome challenges • Poor performance • Developing role (unstable) • Don’t always know what is required Reasons for CIO Turnover Source: 1, 15, 16, 19

12. Resume building • Jump from job to job • Fix it uppers • Habitual resource fighting • Fight for money to acquire programs • Constantly justify budget • CIO Jeff Loyett at a top law firm Reasons for CIO Turnover Continued Source: 1, 9, 16

13. Business and people skills required for a CIO

14. The primary strength as a CIO N=568 Source: 5

15. The most pivotal personal skill required for success in the CIO role N=568 Source: 5

16. Spartan Light Metal Products • CIO Chris Franks • Build-A-Bear • CIO Dave Finnegan • Marvell Asia Pte Ltd • IT Director Vincent Chee • Samsung Heavy Industries • IT Director Boohyung Kim Companies

17. Privately held company founded in 1967. • Vision for the future: “The Global Value Leader in Light Metal Technologies- Through Engineered Solutions and Competitive Costs.” • Working with a wide range of manufacturers, from automobiles and trucks to power tools, electronic components and many more. Spartan Light Metal Products Inc.

18. 1100 Employees • 4 business locations: Plants in: Mexico, Missouri; Sparta, Illinois; and Hannibal, Missouri Corporate Office: At Geyer Road in St. Louis, Missouri • Revenues greater than $200 Million • Doubled in size in the past 7 years Spartan Light Metal Products Inc.

19. The leading, and only international, company providing a “make your own stuffed animal” interactive retail-entertainment experience Source: 7

20. Major products are the bears but make over 30 different styles of animals with variety of clothing, shoes, and accessories Source: 7

21. Founded in 1997 by Maxine Clark • IPO in 2004 • Stores: • Retail (company owned): 293 • Franchised (international): 41 • Employees: • Full time: 1200 • Part time: 5700 Source: 7

22. Families with children ages 3-12 Grandparents Aunts and Uncles Teen girls with boyfriends Build-A-Bear’s Target Market Source: 7

23. Build-A-Bear Sales Source: 7

24. Founded -- 1997 • Size of MAPL-- 253 employees • Locations of MAPL-- Singapore, one sales representative office in China • Products of MAPL --Chips • Chips for Datacom and Storage. • Datacom includes Wireless, Printer, Video and etc. Marvell Asia Pte LTD

25. MAPL’s Revenues • Year of 2003 (Feb 02~Jan 03): US $278 million • Year of 2004 (Feb 03~Jan 04): US $605 million • Year of 2005 (Feb 04~Jan 05): US $934 million • Year of 2006 (Feb 05~Jan 06): US $1,303 million • Year of 2007 (Feb 06~Jan 07): US $1,785 million

26. Founded August 5, 1974 10,565 employees Located in Seoul, Korea 8 overseas branch offices 1 manufacturing subsidiary

27. By providing ships and facilities that are safe, environment-friendly, economical and convenient, the company is able to satisfy any and all customer demands for quality. Samsung’s mission and Core values

28. Major products: • Commercial, Industrial ships, Cruise and Ferries • Offshore platforms • Digital business • Construction and Engineering

29. Sales: $635,169,072 Total Assets: $898,918,471 Capital Stock: $115,493,703 Profit: $212,500,000 Samsung’s Worth (2006)

30. CIO Background

31. Hierarchy of Spartan LMP

32. Build-A-Bear Hierarchy • Weekly meetings with • CFB • CEB • CEB and CFB • All C-level officers

33. Hierarchy of Mapl

34. Reports to the CEO and Executive Director of Management Support • Meet formally twice a month • Usually only sees him during formal meetings Hierarchy of Samsung

35. CIOs Quality Time

36. CIOs Quality Time

37. Started in 2000 as the first director of IT. • 10 people on staff that maintains operations at four facilities across the state. • Tech support at each facility • Server and Network Administrators (Manager) • Software development and Programmers • Department handles email, ERP, purchased programs (integration), all hardware resources (servers, laptops, telecommunications, etc), and Special resources for the engineers who develop designs. IT Department at Spartan LMP

38. Reports to CFO whom is seen frequently • Meetings are scheduled quarterly with CEO • Yearly IT budget in the range of $2 million • Project costs vary from $5k-$15k • Responsibility of IT decisions: • < 100K: IT monarchy • > 100K: IT Steering Committee (Business Monarchy) Control and Decision Making

39. CIB (Chief InBearmation Bear) is the head • 40 employees • Handles: • Service desk (24/7 support) • Contracts with suppliers • Computers, mainframes, routers, servers, etc Build-A-Bear’s IT department

40. Dave determines the budget each year and then gets approval from the CFB • There is no predetermined range for the budget such as 5% of Revenues • Dave determines what IT projects to invest in then takes it to other C level officers to look at/approve Build-A-Bear’s IT Budget

41. Employees: 16 in MAPL and around 50 for Marvell WorldWide • Budget: 1% of revenue of Marvell • Year of 2007(Marvell): US $2,238 million • IT project cost: determined by whether it is a software upgrade/enhancement done internally or by consultants or an equipment upgrade. • Average length of IT projects: 3 to 6 months • IT Projects investment decisions made by CEO and Senior IT Director together IT Department-Mapl

42. Employs 31 people and an additional 65 through partnerships • Budget: $20 million • General Expenses: $14.7 million • Investment: $5.3 million • Budget planned every August by the IT department • Reviewed within the department and discussed with financial department IT Department-Samsung

43. IT Projects: • Average cost: $200,000~300,000 • Average length: Less than 1 year • CIO mainly decides on what projects to invest in but also depends on the size of the investment IT department-Samsung Continued

44. Summary of IT Department Differences

45. Most important skills for a CIO

46. Getting people to understand the value of IT • Getting adequate resources for IT projects. Getting projects done in reasonable amount of time. • User Security. Security for processes within the company. Solutions: • Greater involvement with top business managers to demonstrate value added and provide results. • Stay vigilant. Staff has to understand new risks. Top 3 Challenges and How to Tackle Them:

47. Bandwidth: wants to quicken implementation timelines and overall speed • Security: privacy, identity theft, worms, viruses, etc. • # of projects: Build-A-Bear is a growing company so have many concurrent projects Solutions: • Bandwidth: Automate as much as possible, add staff where needed, prioritize projects • Security: quarterly reviews, best practice sign off, and external audits • Number of projects: try to increase completion speed, but mainly learn to deal with it Top 3 challenges and Solutions for Dave

48. System Outages, • Application performances, • Stability of rollout projects Solutions: • System and Application early warning monitoring tools. • Stringent application testing process • Load simulation Three Biggest Challenges-Mapl

49. PI: President Identity • ERP: Enterprise Resource Planning • KMS: Knowledge Management System Solutions: • BPM: Business Process Management Three Biggest Challenges-Samsung

50. Top 3 challenges for CIO Which challenges fall under which category: IT management, technology, or personal effectiveness?