IT Transformation & "IT Leadership - The Road Less Travelled"

1. IT Innovation & Transformation Poised to strike deeper in a Changing Economy Ian Cook – CIO & Senior Vice President Chubb Insurance Group of Companies

2. Poised to Strike Deeper in a Changing Economy Chubb vs S&P 500 Economic data with permission Roman Scott, Managing Director Calamander Group and economic spokesperson for British Chamber of Commerce, Singapore

3. Certain Change

4. Uncertain Results

5. Certain Change

6. Uncertain Results

7. Certain Change

8. Uncertain Results

9. Certain change, uncertain results

10. But is there

11. Light

12. at the end of

13. The Tunnel?

14. …and then

15. Stock markets

16. Stock markets

17. Green shoots?

18. CDO Premier League Total $ USD 815 bn CDO Losses Source Bloomberg Feb 09

19. It Shrank

20. OECD Leading Indicators Source IMF & Calamander Group

21. Optimism & Denial Source IMF & Calamander Group

22. Exports as % GDP 185 % 94% 62 % 62 % 38 % 37 % 35 % 26 % Asia is more – not less – dependent on exports today than it was a decade ago

23. However

24. Growth depends on people

25. This is your time BRIC G7 USD Trillion “ The world has arrived at a rare strategic inflection point where nearly half its populations – living in China, India and Russia – have been integrated into the global market economy, many of them highly educated. We’re talking about three billion people” Craig Barrett, Intel 2004

26. This is your time BRIC G7 USD Trillion “ The world has arrived at a rare strategic inflection point where nearly half its populations – living in China, India and Russia – have been integrated into the global market economy, many of them highly educated. We’re talking about three billion people” Craig Barrett, Intel 2004

28. Hypothesis The Insurance value chain is composed of information and a series of information exchanges. An insurance business entity makes informed decisions based upon quality information arising from reliable data. USA 19 OECDs incl. USA Percentage of non-residential gross fixed capital formation for ICT as % of total economy Source OECD.org

29. Drivers of Change Products Distribution Your traditional value Proposition may be based a product set through a single distribution channel

30. Drivers of Change Products Channels x 2

31. Drivers of Change Products x n… Channels x n… Prepare for adaptability in response to growing complexity

33. Operational excellence IS a strategy Brand Poor SERVICE Good Low COST High Low COST High

34. Operational excellence IS a strategy Growth Cumbersome - Adaptability - Agile High Productivity Low High Productivity Low

35. Operational excellence IS a strategy Expense High - Cost/Transaction - Low High Transactions/Staff Low High Transactions/Staff Low

36. Becoming Informed Profitability Poorly - Informed - Highly High - Data Quality - Low High - Data Quality - Low

37. IT Leadership The Road Less Traveled

38. Learning & Adaptive culture Credibility is a valuable currency in this cycle Conduct Situational analysis Define Strategic Choices & Vision Measure, Reward & Refine Execution Learn Focus Execute Adapt

39. 2008 ASEAN CIO Leadership Survey Operational performance Financial performance Sustainability performance Technology Architecture Technology performance ICT Skills Strategic Capability Employee Capability Governance Capability Leadership Quotient Technology Quotient Performance Quotient Permission 2008 ASEAN CIO Leadership Study The changing role of CIO: From Technology excellence To Business impact

40. ASEAN quotients of CIO excellence PQ Performance Quotient TQ Technology Quotient LQ Leadership Quotient

42. Leadership challenge Ray Kurzweil – on the pace of progress “ In the 19 th century, we saw more progress (in technology) than in the nine centuries preceding it. In the first 20 years of the 20 th century we saw more advancement than in all of the 19 th century. And we won’t experience 100 years of progress in the 21 st century – it will be more like 20,000 years of progress at the current rate” .

44. Step 1 Keep the shop front open and ready to do business Drive sustainable profitable growth Be clear on our Job Definition :-

46. Step 2 No business person – worth his or her job – is going to want to talk to you until you can unequivocally prove the value that has been achieved from an investment in technology Demonstrate credibility :-

47. Language barriers For example :- Rather than talking about “Architecture” let us discuss how technology can support “An adaptive and learning organisation” Every CIO, IT department manager, analyst, programmer, tester, help desk, IT operations staff, etc. etc. must adopt the language of business in order to describe and understand the true context of their endeavors Empathy Business Domain Strategy Growth Market Distribution Capacity Product Service Productivity Expense Profitability Business Model Customers IT Organisation Infrastructure Machines Architecture Security SOA BPM Web 2 SLA’s Bandwidth BI Project delivery Processes

48. Leadership challenge If, as we suspect… Technology is not yet viewed for its strategic significance in the organisation, there is a good chance that IT is not engaged early enough in the development of business strategy and thought leadership

49. Step 3 Which Table? Have your “earned” your seat at that table? Talking the language of business Getting “A seat at the table” :-

51. Credibility Profile Trusted Advisor Budgets Escalation path Cost Perception IT “Up-Time” Automation Service Catalogue Sourcing Options ROI Solution Availability Performance Metrics Policies Scenario Planning Predictive Analysis Portfolio Management Sourcing Strategy ROA Business Agility Dashboard Compliance Impact on Business Accepted Colleague Critical Resource

52. Step 5 All decisions about the various coures of action required to support a strategy must be owned by the board – or at least in the most senior executive group that we have in our organisation This clearly includes decisions around technology investments Move Technology Investment Decisions outside of IT :-

53. “Order Taking” !! * @@ * @ # !!! *** !! @ !!!!! Bla bla bla bla bla bla Bla bla bla bla bla bla Bla bla bla bla bla bla

54. Step 6 I.T. and Business…. It’s ALL about People Destroy the order taking mentality Develop your people :– Almost everyone in your IT organisation will need some degree of leadership competency

55. “ Today and tomorrow’s CIO must lead like a CEO, analyse like a CFO and execute like a COO. It’s the hardest job in any large organisation” John Ruggero, a Vice-President of Gartner EXP Today’s CIO

56. Thank you for your attention [email_address]