The document discusses the challenges facing CIOs based on surveys of CIOs and industry trends. Key points include: 1) CIOs are facing economic uncertainty and shifting business models which is driving a shift to cost cutting and contingency planning. 2) There is a move from focusing on return on investment to total cost of ownership for IT investments over the next year. 3) Emerging trends around digital natives, the consumerization of IT, and enterprise adoption of web 2.0 will require changes to IT infrastructure and strategies to engage employees and customers.

1. Abbie Lundberg, Editor in Chief, CIO advice.cio.com/blogs/difference_engine CIO Pulse September 2008

4. economic uncertainty photo by Fadzly Mubin

7. shift to cost cutting CIO Budget & Staffing Survey, June 2008 19% 22% 37% 21% Next 12 months 26% 16% 39% 20% Past 12 months Manage IT Infrastructure More efficiently Lower the Operating cost of IT Enable Business Process Innovation Create Topline Revenue growth What is the primary Focus of your Investments?

8. from ROI to TCO CIO Budget & Staffing Survey, June 2008 48% 41% Total cost of ownership (TCO) 52% 59% Return on investment (ROI) June 2008 Jan. 2008 Most important factor driving your IT Investments the next 12 months

9. contingency plans 68% CIO Budget & Staffing Survey, June 2008 32% No plans for contingency plan 20% Not yet but planning to implement 48% Yes, contingency plan currently in place Do you have a contingency plan in place in the event you need to make cuts to your IT budget?

10. riding the recession If a recession is to occur, how confident are you in your organization’s ability to manage through it? Source: CIO Strategic IT Research Study, IDG Research, April 2008

11. some examples

12. extreme measures: TCO = 0?

13. shifting business models

14. digital natives web 2.0 consumerization of IT

17. enterprise web 2.0 spending Source: Forrester Research

20. innovation risk