What a Difference a “Downturn” Makes

Architecture: A Must Have Capability in the CIO’s Toolkit

by John Keast

Over the years CIOs implemented vendor package software without due regard for the implicit architecture defined by others and its dramatic impact on our businesses. CIOs embarked on wholesale customization when they realized that not all businesses work the same way, and they thought it was smart to shape our architecture to “the way we do things around here.” The result of this approach is that The Architecture – the unifying and coherent form of the structure -- is missing; instead, CIOs oversaw the creations of complex systems, silos of functionality, high maintenance costs and a daunting reality that most news system are obsolete before they go live.

Like tech stocks’ valuations have corrected over the last 5 years, CIOs are now more than aware that reality has arrived with a bang. Well, thank goodness. It’s back to basics, folks, and I for one am glad. CIOs no longer have the luxury of replacing existing systems with silver-bullet, package applications, spending their way to the next generation of technology, and riding the wave of the latest technology fad. The days of CIOs surviving with big egos, large corner offices and little talent are over – thank goodness. Today the CIOs charter is now to do more with less and have an unrelenting focus on tangible business benefits, technology optimization and cost savings?

This new charter demands that businesses evolve into sophisticated real-time enterprises, and only those that do will succeed. Even so, real-time enterprises will only dominate where CIOs deliver an information base that includes all forms of loose coupling among disparate applications within the enterprise and extends outside the enterprise to IT shops over which we have no control. Real-time enterprises of tomorrow will seize control of their destiny – to allow all internal and external users to tap the same system and applications available throughout the organization – which means that CIOs must employ precise approaches to architecture and planning today.

At the same time we craft this approach, CIOs are challenged with the need to move at a breakneck pace to implement complex, integrated, customer-facing business processes that touch every piece of technology we own. It’s clear that many CIOs relish the dare, and I am heartened to hear that many of you share my strongly held belief and recognize that tackling architecture is the best approach to building the real-time enterprise. Nevertheless, there are great risks that these efforts will fail if not managed correctly. Success will come down to formulating explicit strategies – it’s not about endless debates about J2Ee vs. .Net but rather being able to carefully align IT strategies to business goals – detailed planning and rock solid execution.

I offer the following suggestions for success. Keep the team small, hire only the most respected people, and focus them on the most complex and pressing of business and technology issues. Insert them early into the process of architecture, strategy and planning. They must be natural leaders, diplomats and listeners. A tall order, I know, but this is serious - your future success is on the line. At the same time, architecture must not become too precise, too confining, academic or restrictive -- there is an important balance. The role of the CIO is to sense this balance.

How do we know if we are being successful with this explicit approach to architecture? I believe it’s simple. Architecture should ensure that a CIO is “generally correct” and avoid being “specifically wrong.”

CIOs have a smaller margin for error than ever before; we continue to live in a harsh business environment, and although the recent tough economic times have undoubtedly passed, applying this new level of discipline and vision to designing business and technology architectures will certainly enhance the reputation and success of the CIO -- and that’s not bad.

About the Author

Currently John Keast is working with Taos in their “Office of the CIO” practice area which specializes in Business / IT Strategy Alignment, Enterprise Architecture, Business Technology Optimization, Interim CIO, CTO, VP, Director roles, Organization Assessments & Design, Project Management Office and Sourcing Strategies.

John has over 25 years experience in Information Technology leadership in global businesses. He is a respected leader who has demonstrated the ability to build and motivate teams and promote a business culture that delivers exceptional results.

John held the role of EVP, Operations & CIO at E2open where he was responsible for the day to day management of the Software-as-a-Service (SaaS) operations services business unit. He also held the position of COO of SEEC, a publicly traded software company that acquired Asera. As EVP, Operations and CIO at Asera, John managed Professional Services, Operations, Customer Advocacy, Technical Support and Information Technology on a worldwide basis, and responsibility for EMEA sales and business development. Asera was funded by Kleiner Perkins Caufield & Byers.

John held the position of VP and CIO at PG&E Corporation the largest investor owned energy company in the US where he drove the strategy and implementation of the information systems for both the regulated Utility business and the newly acquired unregulated businesses. After leaving PG&E Corporation John undertook several interim CIO and CTO roles for leading early stage VC backed companies in 2000 and became an Entrepreneur In Residence (EIR) at Avisent - an incubator funded by McKinsey & Company and General Atlantic Partners. He founded and then became CEO of Tasavo - a company focused on developing solutions for clearing, settlement and risk management for eBusiness. John has also held CIO and other senior management positions at Claris Corporation (a subsidiary of Apple Computer), DHL Worldwide Express, Lydiastar Telecommunications, and Logica plc.

John was selected by Information Week as 1 of the 10 finalists for the “CIO of the Year”, and by ComputerWorld as a “Premier 100 CIO” in 1999.