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A n a l y t i c s R e p o r t
2010
InformationWeek
This year’s InformationWeek 500 companies
are refocusing their IT efforts on innovation
and growth, often after deep cuts during
the downturn. By InformationWeek Staff
A n a l y t i c s R e p o r t
CO NTENT S 4
5
Research Synopsis
The Growth Imperative
14 The Vanguard Group
19 InterContinental Hotels
22 Colgate-Palmolive
26 Merck
29 University of Pittsburgh Medical Center
33 20 Great Ideas to Steal
44 Top 250 Innovators
51 Masters of Technology
53 Know Your Neighbors
57 Government Innovators
61 State & Local Government
Industries
F
68 Insurance
B
69 Information Technology
71 Logistics & Transportation
A
A n a l y t i c s R e p o r t
CO NTENT S 9
10
Figure 1: Innovation Plans
Figure 2: Technology Initiatives That Improved Company Productivity
11 Figure 3: New Web Technologies: 2010 vs. 2009
70 Figure 4: New Web Technologies
73 Figure 5: Innovation Plans: 2010 vs. 2009
74 Figure 6: Global IT Strategies
75 Figure 7: Global IT Strategies: 2010 vs.2009
76 Figure 8: Technology Initiatives That Improved Company Productivity
77 Figure 9: Technology Initiatives That Improved Company
Productivity: 2010 vs. 2009
78 Figure 10: IT-Driven Patents and Copyrights
78 Figure 11: IT-Driven Patents and Copyrights: 2010 vs. 2009
79 Figure 12: IT Adding Value Back to the Business
79 Figure 13: Reporting Structure for CIO
80 Figure 14: Reporting Structure for CIO: 2010 vs. 2009
81 Figure 15: CIO Areas of Responsibility Outside of IT
F
82 Figure 16: CIO Areas of Responsibility Outside of IT: 2010 vs. 2009
O
A n a l y t i c s R e p o r t
CO NTENT S 87
88
Figure 24: IT Spending Expectations
Figure 25: IT Spending Expectations: 2010 vs. 2009
88 Figure 26: InformationWeek 500 Spending Overview
89 Figure 27: Top 100: Innovation Plans
90 Figure 28: Top 100: New Web Technologies
91 Figure 29: Top 100: Global IT Strategies
92 Figure 30: Top 100: Technology Initiatives That Improved
Company Productivity
93 Figure 31: Top 100: IT-Driven Patents And Copyrights
93 Figure 32: Top 100: Reporting Structure For CIO
94 Figure 33: Top 100: CIO Areas Of Responsibility Outside Of IT
95 Figure 34: Top 100: It Adding Value Back To The Business
95 Figure 35: Top 100: CIO Involvement With New Product Development
96 Figure 38: Top 100: IT Budget Allocation
96 Figure 37: Top 100: IT Spending Expectations
97 Figure 38: Top 100: Spending Overview
F
O
E
L
B
A
T
A n a l y t i c s R e p o r t
Research Synopsis
Survey Name: 2010 InformationWeek 500
Methodology:
To be ranked in the InformationWeek 500, companies with revenue of
$250 million or more must complete a rigorous application on their tech-
nology strategies. The process includes quantitative and qualitative
assessments of business tech innovation. Completed applications are
reviewed by a panel of InformationWeek editors, who determine the rank-
ing. The data is aggregated for all 500 companies and by industry; indi-
vidual company data isn’t disclosed without permission.
A n a l y t i c s R e p o r t
T And the fact that it has says a whole lot about the new pressures business technol-
ogy organizations are under. It’s not the cut, cut, cut mind-set of a year ago, according
to our exhaustive InformationWeek 500 research. Budgets have loosened a bit as
companies try to thrash their way out of a moribund economy. As they do, IT organizations are
having to help employees interact in entirely new ways with the outside world, particularly with
customers, who themselves are figuring out what kind of social networking they want to do.
Which leads us back to those wikis. A year ago, just 42% of InformationWeek 500 companies
used wikis, blogs, or social networking to reach out to customers, suppliers, and partners. This
year, that figure shot up to 72%, in one of the most dramatic one-year moves we’ve ever seen
in our InformationWeek 500 data. Back in 2008, only around one-third used wikis and blogs
for external collaboration. So in just two years, this kind of collaboration outside the firewall
has gone from the early adopter realm to darn near table stakes.
A n a l y t i c s R e p o r t
The best analytics work is happening when business units and IT teams blur, so that the work
focuses on goals that move the sales or profit needle. At one hospital network, Group Health
Cooperative of South Central Wisconsin, it was just this kind of effort—headed by the CIO—
that led it to analyze its emergency room data to identify ER “frequent fliers.” It found that just
92 patients rang up $2.2 million in costs by visiting the ER more than six times a year.
Educating those patients on lower-cost options cut those costs 20%.
Mobility might seem like an obvious innovation hot spot, what with 1 billion iPhone apps
already downloaded. But only 22% of InformationWeek 500 companies cite developing mobile
applications as a way they’ve improved productivity this year (up from 15% last year). We did-
n’t ask if they’re doing mobile development for other goals—like reaching customers—but the
low level for internal use suggests that mobile development isn’t yet booming.
Drugmaker Merck’s three highly practical iPhone apps show how mobility can change what
companies do for customers. The apps, which Merck doesn’t even put its name on, let patients
track varying symptoms and vitals. IChemoDiary, for example, lets patients record side effects
as they feel them, so that when they meet with a doctor they don’t have to think “How long
N
ow in its 22nd year, the InformationWeek 500 rec- dividual company data isn’t disclosed without permission.
ognizes business technology teams that have The 2011 InformationWeek 500 application period opens
made a demonstrable impact on the way their in January.You can pre-register at informationweek.com/500/
organizations do business. preregister. For more information, visit the Resource Center at
To be ranked, companies with revenue of $250 million or informationweek.com/iw500. You can send questions to
more must complete a rigorous application on their technol- iw500@techweb.com.
ogy strategies. The process is quantitative and qualitative. The InformationWeek 500 Analytics report,which includes all
Applications are reviewed by a panel of InformationWeek edi- the aggregated data from the survey,can be downloaded free,
tors, who determine the final ranking.The data is aggregated for a limited time,at informationweek.com/analytics/2010/500.
across all InformationWeek 500 companies and by industry;in- —Heather Vallis (hvallis@techweb.com)
A n a l y t i c s R e p o r t
did the nausea last after the last treatment?” The other two apps let people track migraine and
diabetes stats.
Then there’s Vanguard Group, the mutual fund giant and this year’s No. 1 company in the
InformationWeek 500 ranking, which is easing into social networking. It’s helping people who
run company 401(k) plans interact with one another, through moderated online discussions.
Individual investors can interact on parts of the site. But because Vanguard’s mission is to get
people to resist their quick-twitch tendencies and invest for the long haul, it’s being careful
about where and how it unleashes “community.”
“It’s not like Amazon, where it’s a no-brainer that you want to see what the community is
saying about the PC before you buy it,” says Vanguard CIO Paul Heller, who ran the compa-
ny’s retail investor business before becoming CIO. “... Candidly, the community isn’t very
good at investing, as a whole. They’re buying at the height of markets, and they’re selling
when they’re panicked.”
A n a l y t i c s R e p o r t
year’s InformationWeek 500, as companies embrace new growth opportunities, don’t worry
quite as much about cost cutting, but still fret about the uncertain economy.
Some 40% of InformationWeek 500 companies expect to drive new IT-led products or services
as part of their innovation plans. Consider Mansfield Oil, an oil and gas distribution company,
whose IT organization has started selling a software-as-a-service app to the company’s cus-
tomers to help automate inventory tracking. “We could grow by grabbing market share from
Figure 1
Innovation Plans
From the list below, please select the top ways in which your
company plans to innovate with technology in 2010.
9
R1460910_IW500_chart
September 2010
1 © 2010 InformationWeek, Reproduction Prohibited
InformationWeek
Analytics.InformationWeek.com
A n a l y t i c s R e p o r t
competitors,” CIO Doug Haugh says. “But is that the business we want to be in? No. We want
to open new revenue streams.”
Twenty-five percent of InformationWeek 500 CIOs have a formal responsibility for innovation,
in addition to their IT jobs. That’s up notably from 16% a year ago. Twenty-seven percent are
officially responsible for business process improvement.
Figure 2
R1460910_IW500_chart 7
10 September 2010 © 2010 InformationWeek, Reproduction Prohibited
InformationWeek
Analytics.InformationWeek.com
A n a l y t i c s R e p o r t
More than half of InformationWeek 500 companies (57%) expect IT spending this year to
exceed last year’s budget, up from just 37% expecting an increase in 2009. And only 20%
expect their IT budget to decrease, compared with 42% in 2009.
Figure 3
R1460910_IW500_chart 4
11 September 2010 © 2010 InformationWeek, Reproduction Prohibited
InformationWeek
Analytics.InformationWeek.com
A n a l y t i c s R e p o r t
Still, this year doesn’t even return to the optimism companies had in 2008, when 62% thought
their IT budgets would increase. After the clobbering of 2009, a year marked by budget cuts,
layoffs, and pay freezes, perhaps IT teams are feeling cautious.
Asked how they’ll innovate in 2010, just 36% say by lowering costs, compared with 47% last
year. That, too, points to breathing room on budgets.
Offshore outsourcing follows the pattern it has in recent years—it’s plateaued. Fifty-eight per-
cent of InformationWeek 500 companies do some form of IT outsourcing outside the U.S. (For
more on outsourcing, see p. 83.)
There is a slight uptick in the globalization of IT, but it’s focused on employees, not out-
sourcing. Nearly half (49%) of InformationWeek 500 companies make global support and
development part of most IT staffers’ regular jobs, up from 42% a year ago. Forty-four per-
cent are integrating more IT workers into global business processes, such as purchasing and
supply chains, up from 38% last year. Yet IT’s global role looks to be mostly in support. Just
14% cite “pursue new global opportunities” among their 2010 innovation plans, nearly iden-
tical to last year’s findings.
In terms of what companies are spending on, desktop virtualization is one emerging tech-
nology that looks to be getting some pickup—22% of companies have deployed it, up from
13% a year ago.
Green IT, for starters. How else to explain the paltry 5% who cite a more “eco-friendly IT envi-
ronment” as a top 2010 innovation effort. Not that green IT’s ever been a chart topper—last
year 8% cited it. Companies aren’t opposed to green IT. In fact, companies talk a great “sustain-
ability” game. It’s just that IT teams tend to come at green IT through the cost-cutting door.
They’re consolidating data centers to avoid building a new one, to buy fewer servers, and to
use less power. Turns out, that’s all pretty eco-friendly, even if it’s not the goal.
Information security, once a hotbed of business technology innovation, has cooled off. Not that
it’s less important—not by any stretch. But in the innovation essays of IW 500 companies, very
A n a l y t i c s R e p o r t
few wrote about their security initiatives, a notable shift from a few years ago. Perhaps that’s a
sign that IT thinks it’s getting information security under control and not reacting to every vul-
nerability and bug.
Vanguard, though, doesn’t take that view—something about holding $1.4 trillion in other peo-
ple’s assets, and the associated personal information, makes the company consider security
among the two or three areas where it wants to be leading edge. One of the latest innovations
it’s piloting is voice biometrics, using a comparison to a customer’s recorded voice to replace a
signature guarantee for some transactions, such as a name change.
So have companies taken the reins off employees, trusting them to head onto Facebook and
Twitter and Google collaboration apps if that’s what they need to do their jobs? Not even
close. Only 27% of IW 500 companies encourage employees to use consumer-oriented apps
they find useful.
This tension is everyday life for InformationWeek 500 IT leaders, as they try to let employees
be more open and collaborative than ever with customers and colleagues, while staying secure
and compliant and within budget. But the best IT teams don’t let their ambitions be ham-
strung, be it by tradition, or fear, or even budgets. They’re driving for growth, and actively
making the case for new ways that IT can spur revenue and boost profits.
A n a l y t i c s R e p o r t
Like most companies, Vanguard has wrestled with how to make innovation a part of its
everyday culture, without chasing every gee-whiz idea people come up with. Under CIO
Paul Heller, volunteering has become one key piece of its innovation strategy. It’s not a
Google-like program, where engineers can set aside 20% of their time to pursue new ideas.
Vanguard volunteers keep all their day-job responsibilities and log extra hours to work on
more cutting-edge projects.
A n a l y t i c s R e p o r t
The strategy has several advantages. One is keeping the cost down to pursue prototype-stage
ideas. An example is Vanguard’s first iPhone app, which it launched last year. No single busi-
ness unit could justify building an iPhone app based on short-term ROI. While smartphones
are commonplace, the number of people using the new app in a week is less than the number
using the Web site in an hour. So a volunteer team created a first version, which the retail
investor division got without spending any of its budget. “The first release was kind of on the
house,” says Jeff Dowds, who leads IT systems for the retail group and championed the
mobile project.
For employees, the volunteer plan lets them work on something they’re passionate about, with
the blessing and support of their bosses, and get credit for it if it works. For Vanguard, it also
serves as an informal vetting mechanism—almost like a startup trying to raise venture capital.
People are betting their time and reputations on volunteer projects, something they’ll risk only
if they think those projects will pay off for the business. Vanguard has more-formal channels
for funding innovative IT projects that can pay their way. The volunteer effort tackles projects
whose benefits likely are further out.
“It’s applied R&D,” Heller says. “We can look two, three years out and say, ‘Rich Internet apps
are going to happen. We already see it on The New York Times or Amazon.com. Don’t we want
to do it?’ We want to pave the way on the technology, so the first businessperson up who wants
to do a rich Internet app doesn’t have to figure it out on their project.”
Vanguard has tried other approaches to IT innovation. For decades, it was a fast follower. Then
it created a formal innovation lab, with marching orders to spot the latest emerging tech that
A n a l y t i c s R e p o r t
could give an edge to the company. But that work was too far removed from current business
needs, Heller says.
Now Vanguard has just a five-person IT innovation group. Its job is to organize those ad hoc
volunteer teams around a project and coach them through techniques such as agile software
development sprints. But the ad hoc teams do the work.
“This isn’t innovation as in ‘Let’s be cool to show stuff off to our external clients,’ like doing
retina scans,” Heller says. “We try to be really connected to our business and clients.”
Keeping IT in touch with business needs is easier at Vanguard than at a lot of other companies,
since it regularly moves people in and out of IT. Heller held multiple business positions, then
worked a multiyear stint as an IT manager, then led key business operations, and has been CIO
since 2006. Tim Buckley started in a business unit, helped shape Vanguard’s early Web strategy,
became CIO, and now leads the company’s retail division.
But until the volunteer effort was launched, something was missing. “We had a little bit of a
lull on the innovation side,” Vanguard CEO Bill McNabb says. McNabb says he and Heller talk
about always having some IT in the works that has a “wow” factor.
Vanguard’s IT Evolution
Vanguard didn’t always think technology leadership was important. In fact, not being a tech
leader was one of its core principles, part of its philosophy of being a low-cost provider.
Then in the early 1990s, Vanguard CEO John Bogle, the company’s founder and a legend in the
mutual fund industry, gave a speech challenging employees to question the company’s sacred
cows—including its tech fast-follower principle. Bogle put the company on the path to
embrace the latest IT to power its low-cost strategy.
As Vanguard became an IT leader and innovator, Bogle’s successor as CEO, John Brennan, set
the expectation that IT was inseparable from “the business.” He made clear that business unit
leaders couldn’t fob off IT failure—they were responsible for getting the needed technology.
“Gately gets fired” became something of a catchphrase among the executive team, after Brennan
A n a l y t i c s R e p o r t
explained that if, just as an example, the institutional investor group couldn’t deliver because of
an IT shortcoming, it was the head of that unit, Jim Gately, who’d be held accountable. (Gately
had a long and successful Vanguard career. Now retired, he serves on the Vanguard Charitable
Endowment board, with Brennan.)
And then there was CIO Bob DiStefano, whom Vanguard leaders credit with bringing the com-
pany into the Internet age, providing what current CEO McNabb calls “tech enlightenment
training.” DiStefano brought in Internet pioneers and futurists to preach the Web gospel, and
he helped “shape a generation” of leaders’ thinking about IT, McNabb says. He pounded home
the idea that investors would judge Vanguard.com based on their experiences on leading Web
sites like Amazon’s, not other financial sites. (DiStefano died unexpectedly at the age of 52, in
2002.)
Vanguard doesn’t have branches, relying on the Web, phone, and mail to interact with cus-
tomers. In 2000, Vanguard had about $500 billion in assets and 12,000 employees. Today, it
manages $1.4 trillion in assets—and still has only about 12,000 employees. Thanks to the
Web, it takes only 25,000 to 35,000 phone calls a day, instead of the 100,000 it did in 2000.
But it has about 400,000 logons.
Yet neither McNabb nor Heller was convinced Vanguard was doing enough to stay ahead of
emerging tech. “Disruptive technologies often manifest themselves first in a small way—and
then they explode,” McNabb says.
The CEO’s answer is to set aside some budget for disruptive tech projects—the kind no one
business unit can fund but that might make sense for everyone in the near future. For example,
he allocated a couple of million dollars for an internal collaboration site that faced a tough bat-
tle in Vanguard’s formal technology review group. McNabb says Brennan did the same thing
back when “no one could really put an ROI on the Web that mattered.”
Heller’s answer, after some experimenting, has been the volunteering concept paired with the
small innovation team that organizes ad hoc efforts, which Vanguard calls “Dig” teams—for
Distributed Innovation Group.
Among the innovation group’s key operating practices is that each Dig team needs a sponsor—
a key manager to vouch for the project’s business value and be something of a “spiritual leader”
A n a l y t i c s R e p o r t
for the effort. Another is that every Dig project is different, depending on the goal and the peo-
ple involved, so the organizers must be flexible. Usually, about 15 to 20 people answer a call
for volunteers, and about 10 do the bulk of the work.
And this volunteer team won’t take its project to full-scale implementation. “There’s always an
end state of when the innovation team will turn it over to IT for full support,” CTO Carol Dow
says. In addition to the ad hoc work, each of the innovation team members also is assigned one
key area to research for opportunities: app dev, mobile, CRM, flexible infrastructure, security,
marketing, contact center, Web 2.0, and enterprise 2.0.
What’s Ahead
Vanguard’s IT teams have a lot of innovation in the pipeline. One area is internal collaboration.
The IT organization has been using what it calls the IT hub, SharePoint-based sites for informal
collaboration. Rob Lake, who leads the five-person innovation group, says the challenges
include meeting regulations such as record retention, but also getting the tools adopted. For
that, he isn’t wasting time trying to convince anyone they need a collaboration tool. Instead,
he’s looking around Vanguard to “find passionate communities where they’re struggling to col-
laborate,” Lake says. “Find the collaborative groups that need tools.”
Social media is another looming challenge. While its Web site is a huge success, “the one gap
we have found is the personality, the culture of Vanguard is really hard to come through on
Vanguard.com,” says Amy Dobra, who leads the social media effort. Yet Vanguard’s wrestling
with how to meet demand for quick, personable interaction within the strict regulatory envi-
ronment financial companies face.
In mobility, it has a Dig team working on a “build once” mobile strategy, so it doesn’t have to
build apps for every platform from iPhone to Android to BlackBerry. It’s building a prototype for
a rich, interactive mobile Web site. And it’s experimenting with a mobile Web site in what’s
essentially a mobile app container, with minimal programming for each specific platform. But
the retail group’s Dowds thinks they face another five years of developing for multiple platforms.
For now, Vanguard thinks it has the right formula and practices for taking on these emerging
technologies. But count on this: If this system doesn’t deliver the tech the company needs,
Vanguard will again be ready to evolve its IT innovation strategy.
A n a l y t i c s R e p o r t
INTERCONTINENTAL HOTELS
Search, Mobility, BI Keys To Hotel Chain’s Growth
All that Tom Conophy needs to do to show off the IT innovations of
InterContinental Hotels Group is to take visitors next door. Beside the company’s
U.S. headquarters in Atlanta is one of IHG’s Crowne Plaza properties, which serves as a tech-
nology test bed. The hotel’s lobby has an airline flight board similar to those in airports, as well
as touch-screen PCs that let guests do everything from check flights to search for nearby
restaurants. Business travelers can take advantage of a smart
whiteboard in the hotel’s conference area.
A n a l y t i c s R e p o r t
Souped-Up Search
A reflection of the company’s growing business, IHG’s reservation system now gets about 30
million availability requests a day. To support the workload, the company developed its own
patent-pending search technology, the Bottom-Up Optimum Search Strategy. BOSS, as it’s
called, is a Java application that runs on an Oracle RAC database. It uses complex algorithms
and business rules to optimize requests and queries, and caching technology to speed up
responses.
When processing a query, BOSS gathers a swath of information on relevant hotels, allowing for
filters to be applied to the data. For example, a rewards club member could search for a hotel
in Atlanta in May for one to three nights, and the system would do one call to the back-end
system that would return appropriate matches. The same request in another hotel operator’s
system might require multiple searches and hundreds of database calls.
The most robust BOSS usage is currently limited to IHG employees, though the system has
been integrated with Google, so the company can publish ads to the Web that show its lowest
room rate in a given market when someone searches for a hotel. “Search is the killer app for
us,” Conophy says, adding that when BOSS is made available to the public on IHG’s Web site
and on travel sites, it will include GPS support and voice
search. By the end of this year, 30% of all IHG hotel room
IHG By The Numbers searches will be moved to BOSS, and 100% by the end of
$772 million in revenue next year.
for the first half of 2010, and
$8.9 billion with all franchises
Untethered Concierge
$200 million IT budget;
800-person IT organization Mobility is another area of emphasis. The company receives
about $2.5 million a month from mobile bookings—a 400%
4,503 hotels and 656,661
rooms in operation increase over last year. IHG’s iPhone app is the most down-
loaded in the hotel industry, and the company recently added
1,302 hotels with 197,431
rooms under development an Android app. “We expect our mobile business to grow
exponentially,” Conophy says. “People want powerful com-
132 hotels in operation in
China, with another 148 hotels puting in their hands, and for it to be intuitive and rapid.”
under development
$1 billion relaunch of Holiday Experimentation is the name of the game in the mobile
Inn brand under way world, says Bryson Koehler, IHG’s senior VP of revenue and
A n a l y t i c s R e p o r t
guest technology. “I couldn’t tell you exactly what our focus is going to be because it’s changing
so rapidly,” he says, comparing mobility to the Internet of the 1990s.
In fact, mobility increasingly factors into guests’ in-hotel experiences. IHG recently began test-
ing Apple iPads at InterContinental hotels to get concierge staff out from behind their desks
and engage guests.
Going forward, guests will be able to use their smartphones to check in and even unlock their
rooms. Concierges will be able to push sightseeing itineraries to guests’ mobile devices, and
guests will be able to transmit their preferences from their devices to the hotel before they
check in, under a concept IHG calls “Virtually Me.”
Hotel In A Box
IHG’s 800-person IT organization works mostly from the Atlanta headquarters, while IT per-
sonnel in franchise locations—which account for 95% of the company’s U.S. hotels—comprise
a larger matrixed organization. IHG spends a bit more than $200 million annually on IT, or
about 1.2% of revenue, less than competitors Hilton, Starwood, and Marriott. Franchise prop-
erties aren’t required to use IHG platforms, but they typically use its reservations and property
management systems.
IHG makes it easier for franchisees to adopt corporate-recommended tech via its “hotel in a
box”—everything from hosted PBXs and servers to point-of-sale systems in one package. IHG
partnered with IBM to provide that IT as a service. “Hotels were asking us what to do, but it
was hard to do this for as many as two new hotels opening each day,” says Gustaaf Schrils,
IHG’s VP of global technology for the Americas. The hotel-in-a-box costs are 5% to 10% lower
A n a l y t i c s R e p o r t
In another effort to cut costs (and its carbon footprint), IHG last year launched Green Engage,
a Web-based pilot system developed with Harvard University. Under the program, hotel opera-
tors record monthly utilities usage, among other data, and the system tells them whether their
properties are efficient based on city, state, and occupancy norms, and then it makes recom-
mendations—for example, where to install LED lighting. As a next step, the company will
gather energy data using technology such as water flow readers. Conophy estimates Green
Engage could save IHG hotel operators as much as $400 million annually.
COLGATE-PALMOLIVE
Data Drives Colgate Investment Decisions
Consistency. It’s what consumers expect from everyday products such as tooth-
paste and soap, and it’s what consumer packaged goods company Colgate-
Palmolive strives for in everything it does, from manufacturing to financial performance.
Consistency also is the foundation of Colgate Business Planning, a business-IT initiative that
has enabled the company to shift more than $100 million toward more profitable growth areas.
CBP is about ensuring a consistent process and supporting technology for commercial invest-
ments: the funds are allocated for everything from rebates for retailers to promotional cam-
paigns, special discounts, and logistics programs.
Colgate is known for iconic brands such as Colgate toothpaste, Irish Spring soap, Ajax cleanser,
A n a l y t i c s R e p o r t
Until the CBP project got under way five years ago,
Colgate’s more than 100 global subsidiaries took different
approaches to measuring the success of commercial invest-
ment. To develop a uniform methodology, the company
Colgate gets
began by holding workshops around the globe to under-
stand the processes and characteristics of a range of sub- “a demand signal
sidiaries—some large and some small, some in mature mar- that is based on
kets and some in developing countries. A proof-of-concept approved plans,
delivered in 2006 provided a foundation for promotion-
not salespeople’s
planning procedures, as well as profit-and-loss and ROI
measures. aspirations.”
—CIO Tom Greene
The CBP process starts with top-down, 18-month brand
and retail plans from corporate. Key account managers then build detailed, bottom-up plans to
meet the overall goals for big retailers and customer groupings. As investments are made, post-
promotion evaluations measure the cost, uplift, and profitability of each campaign by customer.
Account managers can adjust their plans as they discover what’s working for particular sales-
people, brands, products, retailers, and regions. Sales forecast accuracy also is measured against
actual orders and shipments. “Plans are fed into our supply chain systems, so they get a
demand signal that is based on approved plans, not salespeople’s aspirations,” Colgate-
Palmolive CIO Tom Greene says.
Investing Wisely
The CBP process depends heavily on technology, and here, too, Colgate relies on consistency:
The company’s overall IT strategy is centered on using SAP software wherever it can. The
A n a l y t i c s R e p o r t
power of using a single application vendor is that everything is integrated, Greene says. “With
nonintegrated systems, accuracy and consistency depend on the systems in which data hap-
pens to reside,” he says. “With SAP, the product masters and the customer groupings are all
driven by the same master data.” As a result, he says, you don’t have 12 different people offer-
ing up 12 different “versions of the truth” during meetings.
SAP has been involved in all phases of the CBP project. When the process was first rolled out
in Canada and Mexico in 2006, it was built on SAP promotion planning and sales and distribu-
tion functionality. Now deployed in 17 Colgate subsidiaries worldwide, CBP has been steadily
enhanced, most recently (in 2009) with SAP BusinessObjects dashboarding and what-if plan-
ning capabilities and SAP CRM 7.0 user interface improvements. “Early on, the maturity of the
CRM product wasn’t quite what we needed it to be, but we worked with SAP to evolve it into a
robust commercial planning tool,” Greene says.
The CBP process is now used by more than 1,000 customer planning groups accounting for
about 60% of the company’s commercial investment spending. ROI analysis by customer
makes it clear which types of promotions are driving profitable growth and which aren’t, with
insight down to specific products. So, Colgate has been able to reinvest $100 million into more
profitable promotions.
Colgate has learned many lessons about the profitability and performance of various commer-
cial investments. Greene declined to give away what he called “trade secrets,” but it’s easy to
A n a l y t i c s R e p o r t
guess that changes to coupon levels and in-store displays or adjustments to discount thresh-
olds, rebates, and logistics allowances might be involved.
The long-term goal is $300 million in savings that could be reinvested or dropped to the bot-
tom line. That leaves a ways to go, but with the latest BI and CRM improvements, Colgate has
next-day analytic visibility into performance bright spots and shortfalls.
“Every morning, every senior executive can see what happened [with net sales] globally, and
they can track how we’re doing against our monthly plan,” Greene says. “We know which
subsidiaries are hitting their goals, and we can also look at market-share changes based on
Nielsen data.”
Colgate’s deployment experience and the latest BI and CRM upgrades have made it easier to
accelerate the ongoing subsidiary-level rollouts and get CBP insight into the hands of employ-
ees. A dedicated team of six marketing and supply chain executives reviews the use of the
CBP process and counsels subsidiary-level managers. Dedicated IT teams also support the
process, so any difficulties integrating required data or adapting to new interfaces can be
resolved quickly.
From the very beginning, Colgate avoided a cookie-cutter approach. The core process is
immutable, but subsidiaries can tweak 20% to 30% of the approach to match local market
characteristics. As an example, some subsidiaries might have 100 or more key customers
whereas others might have just four taking up 80% of commercial investment. Units with a few
large customers can develop deeper levels of promotional planning and analysis.
Greene says he’s gained a lot of valuable insight through his early involvement in the CBP proj-
ect. “You have to understand the technology, but the most important thing to a CIO’s success is
to understand the business so you can marry the two together,” he says.
The margin-driving, technology-supported CBP process is just the sort of pairing he’s talk-
ing about.
A n a l y t i c s R e p o r t
MERCK
“We felt technology could play a huge role in streamlining healthcare and helping educate con-
sumers around health and wellness,” says J. Chris Scalet, Merck’s CIO and executive VP of
global services. The company commissioned a group within the IT organization, called
Technology Innovation for Human Health, to take a forward-looking view of health IT.
Working with key people from various Merck business units, the group looked at the chal-
lenges in the healthcare industry around education, awareness, and behaviors, Scalet says.
A n a l y t i c s R e p o r t
“We found that in speaking to patients, they forget information, and it can be difficult to track
things in real time,” says Steve Hoelper, a project lead in the Technology Innovation for Human
Health group. Recognizing the growing popularity of smartphones and mobile devices, the
group decided to see if a mobile application could help patients better manage their own care.
The first application developed was Vree. People with type II diabetes and their caregivers can
use the application to record essential health information, such as blood glucose levels, which
patients measure anywhere from once to five times a day by drawing blood and using a glu-
cometer. Patients can enter reads into the app, compiling a record for when they next visit their
doctors. Vree also can help users keep track of their medications and provide information
around diet and exercise.
The group then moved to the iChemoDiary and iManage Migraine applications. The
iChemoDiary app helps cancer patients who are undergoing chemotherapy or radiation track
symptoms and side effects,
such as nausea, vomiting,
Merck’s Many IT Challenges and dizziness. The applica-
tion can create graphs of
D eveloping apps isn’t all Merck CIO and executive VP of global serv-
ices J. Chris Scalet is up to. In March 2009, the drugmaker an-
nounced it was acquiring rival Schering-Plough for just over $41
billion in cash and stock. Eighteen months later, integrating the two phar-
symptoms over time, pro-
viding a sort of personal
analytics system. “When
maceutical giants remains a huge challenge. Integrating the two com-
pany’s R&D, manufacturing, supply chain, sales, and marketing organiza- you speak with a physician
tions without disrupting customer service is high on Scalet’s agenda. or nurse, you can discuss
Merck is also rolling out a global ERP system from SAP. The goal is to how you feel, and have data
have a common set of data that serves as the “single version of the truth”
for the entire organization, something Scalet expects will yield results in
to back it up,” Hoelper says.
the realm of business analytics.
The company already has virtualized a significant portion of its server The iManage Migraine app
and storage infrastructure, which has cut the time it takes to provision ca- was requested by Merck’s
pacity from weeks to days. Now it’s aggressively moving toward the pri-
customer advisers.
vate cloud—and cautiously evaluating public services.
Scalet is cautious about the public cloud— as a highly regulated indus- According to Merck,
try, Merck has to move carefully when turning over applications and data migraine sufferers are gener-
to a provider. But that hasn’t stopped the company from embracing the ally female between the ages
cloud for applications it believes are appropriate to move outside the fire-
of 18 and 49 years—also an
wall, namely SaaS-based CRM and some specialized HR apps that run as a
service. —Andrew Conry-Murray ideal demographic of smart-
phone users. As with the
A n a l y t i c s R e p o r t
other apps, iManage Migraine helps patients track symptoms so that they can provide more-
detailed information to their physicians.
The company is looking at providing these applications in languages other than English.
“Diabetes is worldwide,” says Jim Swanson, Merck’s VP of IT and a project leader for the
mobile applications. “Take China—unless you’re in a city with a high level of healthcare, it’s
difficult for patients to get educated. But you can give someone a cell phone, and content can
be easily distributed.”
A mobile application takes about three months to develop, according to Merck. The effort
involves multiple groups within the company, including a usability lab, the marketing depart-
ment, business analysts, software developers, and of course the legal department. Privacy of
patient data is paramount, so the apps encrypt data stored on the mobile device using 128-bit
asymmetric encryption. “The consumer retains control,” Swanson says. “It’s their information,
and they decide how to share it.”
At present, the mobile apps don’t have the ability to connect to other applications, such as a
physician’s or hospital’s electronic medical records system. Over the long term, however, Merck
expects such capabilities could be introduced. “That’s where the industry is going and where
value is going to be generated,” Hoelper says. At present, however, the regulatory and techno-
logical framework simply doesn’t exist. “Until health information exchanges emerge, we can’t
connect to data stores in a cost-effective way,” he says. “The plumbing needs to be laid first.”
Meantime, the company is moving forward with other mobile apps. It’s providing real-time
access to medical reference materials like MerckMedicus and the Merck Manual Home and
Professional editions, making them available to physicians via mobile devices, such as iPhones
A n a l y t i c s R e p o r t
and BlackBerrys. The company says the MerckMedicus app was downloaded 4,500 times in
the first two months it was available.
While the disease-related apps are unbranded, the company also is experimenting with mobile
apps that blend health information with not-so-subtle pitches for Merck products. Case in
point is the Coppertone MyUV Alert, a mobile application released this summer that lets users
check the local UV index and offers sun care tips, including reminders to apply sun block. The
application can also send Coppertone coupons to customers. According to Merck, the MyUV
Alert was downloaded more than 20,000 times in the first two weeks of its release.
—Andrew Conry-Murray
A n a l y t i c s R e p o r t
The medical center operates 20 hospitals, 400 doctor groups, outpatient care facilities, and a
healthcare plan in western Pennsylvania. It has a decade-long history of developing tech innova-
tions to improve processes, reduce costs, and boost the quality of care, both on its own and in
partnership with vendors and other companies.
Just in the last year, UPMC has commercialized several IT-based innovations, including Via
Oncology, a subsidiary whose Web decision-support tools help oncologists choose cancer treat-
ments that are likely to produce the best outcomes and least complications for patients. Those
tools were developed originally for UPMC’s doctors to treat cancer patients at any of its 38 thera-
py centers.
Another recent UPMC innovation is SingleView, a standards-based platform that pulls together
the multiple picture archiving and communications systems, or PACS, used across the medical
center’s facilities. With 20 hospitals and 30 outpatient imag-
UPMC Innovation ing centers, UPMC has multiple imaging systems and
SmartRoom An ultrasound- archives, each creating a silo of patient information.
based location system that
feeds information to staff and SingleView, developed by a small team of UPMC clinicians
patients
and IT staff two years ago, lets the medical center’s 20,000
Via Oncology A wholly owned radiologists, doctors, and other clinicians access reports and
subsidiary that sells evidence-
based,Web clinical decision-
imaging studies in any of the PACS and other imaging sys-
support tools to cancer doctors tems across the enterprise. That way, they know which tests
nationwide have already been done on a patient before scheduling new
SingleView Enterprise, feder- ones. The system also makes previous images available to
ated picture archiving and com- doctors for comparison.
munications system that pro-
vides a unified view of patients’
Having this information available has reduced considerably
medical imaging tests regard-
less of where they’re stored the number of unnecessary and redundant tests ordered for
patients and kept patients from being exposed to unnecessary
Center for Connected Medicine
UPMC and 14 partners, includ- radiation, says Dr. Rasu Shrestha, medical director of digital
ing IBM, Google, and Verizon imaging informatics and a leader of SingleView. It’s also
Wireless, develop healthcare reducing the number of disputes with payers over unneeded
applications and technologies
or redundant testing, he says.
A n a l y t i c s R e p o r t
Other large integrated healthcare providers, including Kaiser Permanente and the U.S.
Department of Veterans Affairs, are keeping an eye on SingleView, Shrestha says, though UPMC
has yet to decide whether to take it commercial. Besides being a useful image management tool,
SingleView also has “the makings of a health information exchange with a keen focus on radiol-
ogy,” he says.
That effort has saved UPMC at least $80 million over three years in capital and operating costs,
according to an IDC evaluation. Included in that savings is $17 million to $20 million by reduc-
ing the number of Wintel servers from 1,300 to 22 and Unix servers from 74 to 14; those Unix
boxes are now logically partitioned into 500 servers, Sikora says.
UPMC’s Windows system engineers can now handle 159 servers each, up from 102 before the
transformation. On the Unix side, they deal with 49 servers apiece, up from 35.
The data center went from 48 cabinets to two, with plenty of space to grow in the next five
years. Before the transformation, UPMC expected to be out of space in two years, Sikora says.
UPMC did this consolidation while growing: Its Windows environment grew 229% in terms of
apps added and expanded, its Unix environment grew 238%, storage increased 685%, and the
number of desktop users rose from 22,000 to 49,000, Sikora says.
The virtualization and consolidation have CIO Dan Drawbaugh and CEO Jeffrey Romoff toying
with new opportunities. “We’re talking about public and private cloud computing, how UPMC
could position our private cloud for virtualization that we have in place and establish relation-
ships with key partners on the public cloud,” Drawbaugh says.
UPMC has already started bringing to market new products and services related to its partner-
A n a l y t i c s R e p o r t
ship with IBM. In late July, the two companies announced a joint multimillion-dollar investment
in SmartRoom, a UPMC subsidiary that will market a location-based system developed by
UPMC. SmartRoom embeds ultrasound technology in badges worn by UPMC staffers, so that
when they walk into a patient’s room they’re identified on a bedside monitor. The system auto-
matically provides doctors and nurses with pertinent patient information and workflow tools so
that important data is more easily accessed and entered into digital patient records.
While UPMC and IBM won’t say exactly how much they’ve invested in SmartRoom, the compa-
nies describe it as the largest investment to date from the $50 million joint development fund
they created as part of the IT transformation partnership.
Drawbaugh won’t say exactly how much of UPMC’s $7.7 billion annual revenue is generated by
spun-out businesses like Via Oncology and SmartRoom; those two together have generated
“multimillion dollars” and are profitable, he says.
UPMC is involved in other collaborative efforts, including a health information exchange being
launched that will let healthcare providers and other institutions in western Pennsylvania and
parts of Ohio and West Virginia easily share patient records and other data.
UPMC also recently launched the Center for Connected Medicine, collaborating with more than
a dozen tech companies, including Google, IBM, and Verizon Wireless, on new healthcare appli-
cations. It also has created a technology development center, for which it’s recruiting 25 high-
level engineers to work on mobile healthcare and other applications.
These projects and partnerships all reflect UPMC’s relentless focus on technology innovation and
entrepreneurship. “It’s part of the DNA of UPMC that whatever you’re doing today you’re plan-
ning for improvement tomorrow,” Sikora says. It’s what makes UPMC a healthcare industry
standout.
A n a l y t i c s R e p o r t
Last year, Southern centralized all the worker information with a Web application that provides
a central repository of worker data. Now, workers can easily move from plant to plant, using
technology like hand scanners to gain entry. The system will save the company $5.8 million
over 4.5 years in labor and drug-testing costs. It’s also being sold to other utilities.
A n a l y t i c s R e p o r t
streamline the workflow in the East Florida division’s emergency services department. The divi-
sion developed software that extracts ER wait times and averages them over a rolling four-hour
window. This gave staff a way to easily monitor workflow and wait times.
Once that was accomplished, the division decided to make wait-time data available to the com-
munities it served. Using RSS feeds, it posted wait times on its hospital Web sites, created an
iPhone app, and provided text messages, along with the billboard messages.
“This type of transparency is not common in the hospital industry and required great confi-
dence in our emergency services operations,” says HCA, which runs 163 hospitals and 105
surgery centers in 20 states.
Generally, 65% of a hospital’s inpatient activity is derived from ER admissions. The ER wait-
time service is credited with helping increase emergency room admissions at HCA’s East Florida
division by nearly 7%.
The results have been dramatic: Replenishment planning that used to take days and reams of
paper is now done several times a day. And more important, in-stock levels are running at
above 98% to 99% during key promotional periods.
A n a l y t i c s R e p o r t
A n a l y t i c s R e p o r t
MuSE created an interactive environment that makes it possible to extract and visualize model-
derived information in real time. This information makes it easier to pick drug compounds and
doses, as well as to optimize study designs.
Executing simulations and compiling results, which previously required days or weeks of mod-
eling experts’ time, can now be done in minutes. And Lilly clinical trial designs are benefiting
from improved dose/response relationships, better trial dose starting points, and the ability to
simulate multiple trial endpoints. All of these contribute to more efficient clinical trials with
fewer failed designs.
McCoy’s Helps
Contractors Sell
Themselves
Building supplies and farm equip-
ment retailer McCoy’s provides its
best contractor customers with cus-
tomized Web pages where they can
advertise services they offer, their
qualifications, licensing, warranties,
and pricing, as well as photographs
of their work.
A n a l y t i c s R e p o r t
The telematic data along with laboratory analysis of machine fluids is automatically fed into an
expert system. Other inputs into the system include preventative maintenance schedules and
visual inspections of machines. The data is processed through a flexible rules engine that codi-
fies Deere engineers’ vast experience and understanding of how to interpret complex machine
data. The system translates this data into plain language and suggests how to proactively main-
tain machine health.
The site also lets Vans pre-configure shoes to give customers a starting point. The project resulted
in a significant increase in Van’s custom shoe sales and Web site traffic.
A n a l y t i c s R e p o r t
GPS-Equipped Garbage
Trucks Cut Waste
Waste Management has put GPS tracking and on-board
touch-screen computers in its Seattle garbage trucks to cap-
ture real-time route status information and provide wireless
communications between drivers and dispatchers. The sys-
tem includes custom mobile software running on ruggedi-
zed touch-screen tablet PCs with a Web-accessible custom
dispatch application.
Mobile software provides a map of collection service points, replacing a paper address list. The
system reroutes drivers when dispatchers add stops midroute. It gives dispatchers real-time
updates on a vehicle’s progress. And it lets dispatchers reassign work and automatically notify
drivers of changes through instant messages.
Under the new system, missed pickups are down 60%. And Waste Management has exceeded
tightly defined service levels in its contract with the city of Seattle. Waste Management also has
cut paper consumption by more than 1 million sheets per year..
A small group of developers now build library images that are used by all testers, resulting in
faster testing cycles. Developers no longer spend weeks staging and preparing servers for testing.
SAS already is provisioning more than 4,000 environments a week. At any time there may be
1,200 environments running, and that’s expected to double by year’s end.
A n a l y t i c s R e p o r t
The cooperative’s Care Management and Community Services departments contacted each of
the frequent fliers and discovered that many didn’t understand the importance of having a pri-
mary healthcare provider. They also didn’t know about the company’s urgent care facility, a
lower-cost alternative to the emergency room. In the program’s first six months, costs associat-
ed with ER frequent fliers decreased by $481,000.
The system has an information portal that contains engineering part specifications, process and
quality mandates, and local process specifications. The portal ties in social media, including
blog-like information sharing. The system also provides mashups of some previously unavail-
able data streams.
GM credits the system with assembly time reductions of 15% annually, resulting in savings of
several million dollars per plant. The company plans to sell the system commercially next year
to other manufacturers.
A n a l y t i c s R e p o r t
United Stationers’
E-Commerce Breadth
United Stationers, a wholesale distributor of office
products, is transforming itself into a provider of
broader, revenue-generating services, such as online
marketing and technology, to resellers.
Increasingly, United Stationers also is selling technology. It offers resellers a wholesale distribu-
tion software suite that they can customize. And it recently acquired MBS Dev, a software and
services provider to resellers, so it can provide more services, including integration of e-com-
merce and other business functions, such as customer service, purchasing, finance, credit and
collections, and analytics.
Next, United Stationers plans to create a development laboratory for online marketing and
merchandising techniques for office products. It’s also planning a private cloud that will pro-
vide a revenue-generating ERP and e-commerce offering to resellers.
It consists of a network of more than 300 46-inch monitors strategically placed to provide
information to passengers. The displays vary from passive screens with safety demos and infor-
mation on activities to fully integrated and interactive touch panels that provide real-time infor-
mation regarding activities on the ship. For example, the monitors can display which restau-
rants have open tables and which have a waiting list, based on data captured using shape-
recognition cameras. They support multiple languages, including English, Spanish, French,
Italian, German, and Portuguese.
A n a l y t i c s R e p o r t
SHOPP’s interface provides a simple and intuitive view of everything sales reps need to complete
an order, including a real-time credit module, pricing and discounting modules, and a payment
and signature module that makes sure a device is ready to use when the customer leaves the
store. SHOPP can be used on a mobile tablet PC, letting sales reps move through the store while
completing the entire sales transaction.
SHOPP has cut order processing time by at least 40%, saving about 500,000 hours of order pro-
cessing time across the company. And within IT, it has replaced four separate order processing
applications, resulting in a single code base. This has driven operational efficiencies across the
technology group, while reducing maintenance, development, and training costs.
A n a l y t i c s R e p o r t
When content management systems didn’t solve the problem, CenterPoint looked closer and
discovered that employees preferred Outlook folders for storage because of the proximity to e-
mail. It was easier to drag and drop a message to a folder.
A n a l y t i c s R e p o r t
Performance Catches
On At First Horizon
First Horizon National, a Tennessee financial services
provider, implemented a company-wide performance
management system called Bonefish—so named because
its financial metric diagram resembles a fish skeleton.
One part of that effort, MyPlan, makes Bonefish goals transparent across the company. It lets First
Horizon cascade those goals from the CEO down to the bank branch tellers. All employees partici-
pate in goal creation and alignment, and as a result are more focused on the bank’s profitability.
Customers put the SenseAware device in a FedEx package, and it provides near real-time data
on the vital statistics of the
contents, including location,
temperature, and when it
was opened or exposed to
light.
A n a l y t i c s R e p o r t
I N F O R M AT I O N W E E K ’ S 2 2 N D A N N UA L R A N K I N G
OF THE LEADING U.S. USERS OF B USINESS TECHNOLOGY
A n a l y t i c s R e p o r t
Financial data is from public sources and company supplied. Revenue is for latest fiscal year.
Dashes indicate companies requesting financial data not be disclosed.
A n a l y t i c s R e p o r t
A n a l y t i c s R e p o r t
A n a l y t i c s R e p o r t
A n a l y t i c s R e p o r t
A n a l y t i c s R e p o r t
A n a l y t i c s R e p o r t
MASTERS
OF TECHNOLOGY
The full alphabetized list of this year’s INFORMATIONWEEK 500
with new insight into regional trends
Region
Region
COMPANY HIGHEST-RANKING IT EXECUTIVE COMPANY HIGHEST-RANKING IT EXECUTIVE
ABF Freight System Inc. Dave Cogswell Applied Materials Inc. Jay Kerley/Ron Kifer
www.abf.com Fort Smith, Ark. President, Data-Tronics www.appliedmaterials.com Santa Clara, Calif. Corp.VP & Deputy CIO/Group VP & CIO
ABM Industries Inc. Doug Gilbert Apptis Inc. Phil Horvitz
www.abm.com New York, N.Y. VP & CIO www.apptis.com Chantilly,Va. CTO
Accenture Frank B.Modruson Aramark Corp. David Kaufman
www.accenture.com New York, N.Y. CIO www.aramark.com Philadelphia, Pa. CIO
Access Insurance Co. Andrew Dunn Arch Coal Inc. David Hartley
www.accessgeneral.com Atlanta, Ga. CIO www.archcoal.com St. Louis, Mo. VP & CIO
Accretive Health Inc. Paul T.Cottey Arkansas Blue Cross & Blue Shield Joseph S.Smith
www.accretivehealth.com Chicago, Ill. CIO www.arkbluecross.com Little Rock, Ark. Sr.VP & CIO
Activant Solutions Inc. John Breeden/Stuart Maxel Armada Supply Chain Solutions Joseph Brado
www.activant.com Livermore, Calif. VP of IT/Continuous Improvement Mgr. www.armada-scs.com Pittsburgh, Pa. VP & CIO
Actuant Corp. Dennis B.Biederman Arrow Electronics Inc. Vincent Melvin
www.actuant.com Butler,Wis. IT Director www.arrow.com Melville, N.Y. VP & CIO
Acuity,A Mutual Insurance Co. Neal Ruffalo Associated Press Lorraine Cichowski
www.acuity.com Sheboygan,Wis. VP & CIO www.ap.org New York, N.Y. Sr.VP & CIO
Acxiom Corp. David Guzmán AstraZeneca plc Richard Williams
www.acxiom.com Little Rock, Ark. Sr.VP & CIO www.astrazeneca.com Wilmington, Del. Global CIO
ADC Telecommunications Inc. Chris Jurasek Asurion Insurance Services Chris Corrado
www.adc.com Eden Prairie, Minn. Pres., ADC Professional Services,VP & CIO www.asurion.com Nashville,Tenn. Sr.VP & CIO
Advanced Health Media LLC Greg Miller AT&T Inc. Thaddeus Arroyo
www.ahmdirect.com Bridgewater, N.J. Exec.VP & CIO www.att.com Dallas,Texas CIO
Advocate Health Care Bruce D.Smith A.T.Kearney Inc. John Laughhunn
www.advocatehealth.com Oak Brook, Ill. Sr.VP & CIO www.atkearney.com Chicago, Ill. CTO
Aerojet-General Corp. Craig Halterman Atlantic Health Linda Reed
www.aerojet.com Rancho Cordova, Calif. VP & CIO www.atlantichealth.org Morristown, N.J. VP of IS & CIO
AES Corp. Elizabeth Hackenson Atlas World Group Inc. Mike Neeley
www.aes.com Arlington,Va. Sr.VP & CIO www.atlasworldgroup.com Evansville, Ind. VP & CIO
Aetna Inc. Meg McCarthy Atmos Energy Corp. Rich Gius
www.aetna.com Hartford, Conn. Sr.VP of Inno.,Tech., & Serv.Operations & CIO www.atmosenergy.com Dallas,Texas VP & CIO
Aflac Gerald Shields Atos Origin Inc. Paul Stewart
www.aflac.com Columbus, Ga. Sr.VP & CIO www.atosorigin.com Houston,Texas Exec.VP & CEO, North America
AG Interactive Joseph Yanoska Austin Energy Karl Popham
www.aginteractive.com Cleveland, Ohio VP of Technology www.austinenergy.com Austin,Texas CIO (Interim)
Air Wisconsin Airlines Corp. Jeff Main Automatic Data Processing Inc. Michael L.Capone
www.airwis.com Appleton,Wis. Managing Dir. of IT www.adp.com Roseland, N.J. Corp.VP & CIO
Alaska Airlines Inc. Kris Kutchera AutoTrader.com Inc. Bob Hadley
www.alaskaair.com Seattle,Wash. VP of IT www.autotrader.com Atlanta, Ga. CIO
Alberto-Culver Co. Tony Bender Avanade Inc. Chris Miller
www.alberto.com Melrose Park, Ill. VP & CIO www.avanade.com Seattle,Wash. CIO
Alliance One International Inc. William D.Pappas Aviat Networks Inc. Richard Plane
www.aointl.com Morrisville, N.C. Sr.VP & CIO www.aviatnetworks.com Morrisville, N.C. VP & CIO
Allianz Life Insurance Co.of North America Tom Bauer Aviva Plc Toby Redshaw
www.allianzlife.com Minneapolis, Minn. Sr.VP & CIO www.aviva.com Chicago, Ill. Global CIO
The Allstate Corp. Catherine S.Brune Avnet Inc. Steve Phillips
www.allstate.com Northbrook, Ill. Sr.VP & CIO www.avnet.com Phoenix, Ariz. Sr.VP & CIO
Ameren Corp. Mary Heger Avon Products Inc. Donagh Herlihy
www.ameren.com St. Louis, Mo. VP of Ameren Services Center & IT www.avoncompany.com New York, N.Y. Sr.VP of IT & CIO
American Airlines Inc. Monte Ford AXA Equitable Life Insurance Co. Kevin E.Murray
www.aa.com Fort Worth,Texas Sr.VP of IT & CIO www.axa-equitable.com New York, N.Y. Exec.VP & CIO
AmeriGas Partners LP Rick Fabrizio Baker Hughes Inc. Clif Triplett
www.amerigas.com King of Prussia, Pa. VP & CIO www.bakerhughes.com Houston,Texas VP & CIO
AmerisourceBergen Thomas H.Murphy Baldor Electric Co. Mark Shackelford
www.amerisourcebergen.com Chesterbrook, Pa. Sr.VP & CIO www.baldor.com Fort Smith, Ark. VP of IS
Amgen Inc. Thomas J.Flanagan Banner Health Michael S.Warden
www.amgen.com Thousand Oaks, Calif. Sr.VP & CIO www.bannerhealth.com Phoenix, Ariz. Sr.VP of IT & CIO
Ansell Limited Shawn W.Knox Baptist Health Roland Garcia/Dave Dully
www.ansell.com Red Bank, N.J. Sr.VP & CIO www.e-baptisthealth.com Jacksonville, Fla. Sr.VP & CIO/CTO
Antares Management Solutions Ken Sidon/Paul Apostle Bartlett & Co. Matt Whalen
www.antaressolutions.com Strongsville, Ohio Exec.VP & CIO/VP, Enterprise Development www.bartlett1898.com Cincinnati, Ohio IT Manager
Appleton Papers Inc. Satish Dave Barton Malow Co. Phil Go
www.appletonideas.com Appleton,Wis. Exec. Dir. & CIO www.bartonmalow.com Southfield, Mich. CIO
Applied Industrial Technologies Inc. Lonny Lawrence Batesville Casket Co. Darryl M.Maslar
www.applied.com Cleveland, Ohio VP of IT www.batesville.com Batesville, Ind. VP of Business Information Systems
A n a l y t i c s R e p o r t
Region
Region
A n a l y t i c s R e p o r t
Midwest Northeast
• Spend 2.5% of revenue on IT, on average • Spend 3.1% of revenue on IT, on average
• 52% expect 2010 IT spending to exceed 2009 • 58% expect 2010 IT spending to exceed 2009
• 44% are making global support and develop- • 56% are making global support and develop-
ment part of most IT workers’regular jobs ment part of most IT workers’regular jobs
West
• Spend 3.1% of revenue on IT, on average
• 61% expect 2010 IT spending to exceed 2009
• 53% are making global support and development South
part of most IT workers’regular jobs • Spend 2.3% of revenue on IT, on average
• 59% expect 2010 IT spending to exceed 2009
• 46% are making global support and development
part of most IT workers’regular jobs
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A n a l y t i c s R e p o r t
Region
Region
Region A n a l y t i c s R e p o r t
Region
COMPANY HIGHEST-RANKING IT EXECUTIVE COMPANY HIGHEST-RANKING IT EXECUTIVE
Kellwood Co. Linda Kinder NetApp Inc. Marina Levinson
www.kellwood.com Chesterfield, Mo. VP & CIO www.netapp.com Sunnyvale, Calif. Sr.VP & CIO
Ketchum Inc. Andy Roach NetScout Systems Inc. Ken Boyd
www.ketchum.com New York, N.Y. Partner & CIO www.netscout.com Westford, Mass. Sr.VP Services & CIO
Kimpton Hotels & Restaurants Kris Singleton Newell Rubbermaid Inc. Gordon Steele
www.kimptonhotels.com San Francisco, Calif. CIO & VP of Technology www.newellrubbermaid.com Atlanta, Ga. Sr.VP Program Management Office & CIO
Kindred Healthcare Inc. Rick Chapman Newmark Knight Frank Deepak Lakhani
www.kindredhealthcare.com Louisville, Ky. Exec.VP, CIO & CAO www.newmarkkf.com New York, N.Y. Dir. of Applications Development
Knight Capital Group Inc. Steven J.Sadoff Newport Corp. Greg Reischlein
www.knight.com Jersey City, N.J. Exec.VP & CIO www.newport.com Irvine, Calif. CIO
Knight Transportation Inc. Cory Staheli The New York Times Co. Joseph Seibert
www.knighttrans.com Phoenix, Ariz. VP of IS www.nytco.com New York, N.Y. Sr.VP & CIO
Krueger International Inc. Vicki Petit North Shore-Long Island Jewish Health System John Bosco
www.ki.com Green Bay,Wis. VP of IS www.northshorelij.com Great Neck, N.Y. VP & CIO
Lamar Advertising Co. Ed Nettles Northern Trust Corp. Peter Magrini/Jim Scholefield
www.lamar.com Baton Rouge, La. VP & Dir. of IT www.northerntrust.com Chicago,Ill. Exec.VP,Tech.Apps./Sr.VP,Tech.Infra.& Ops.
Landstar System Inc. Larry S.Thomas Northrop Grumman Corp. Bernard P.McVey
www.landstar.com Jacksonville, Fla. VP & CIO www.northropgrumman.com Los Angeles, Calif. VP & CIO
Leggett & Platt Inc. Michael Blinzler Norton Healthcare Inc. Joseph DeVenuto
www.leggett.com Carthage, Mo. VP of IT www.nortonhealthcare.com Louisville, Ky. VP of IS & CIO
Lehigh Valley Health Network Harry F.Lukens Nygard International Partnership Len Nicolas
www.lvhn.org Allentown, Pa. Sr.VP & CIO www.nygard.com New York, N.Y. COO
Lifespan Corp. Carole Cotter Occidental Petroleum Corp. Donald L.Moore
www.lifespan.org Providence, R.I. Sr.VP & CIO www.oxy.com Los Angeles, Calif. VP & CIO
Littelfuse Inc. Ed Earl Odyssey HealthCare Inc. James Zoccoli
www.littelfuse.com Chicago, Ill. CIO www.odsyhealth.com Dallas,Texas VP of IT
Lockheed Martin Corp. Sondra Barbour Ogilvy & Mather Worldwide Yuri Aguiar
www.lockheedmartin.com Bethesda, Md. VP of Enterprise Business Services & CIO www.ogilvy.com New York, N.Y. Sr. Partner & CTO
Lockton Inc. David Robinson OhioHealth Michael Krouse
www.lockton.com Kansas City, Mo. CIO www.ohiohealth.com Columbus, Ohio System VP & CIO
Lowe’s Companies Inc. Steven M.Stone Old Dominion Freight Line Inc. Ken Erdner
www.lowes.com Mooresville, N.C. Sr.VP & CIO www.odfl.com Thomasville, N.C. VP of IT
Lubrizol Corp. Patrick H.Saunier OneAmerica Financial Partners Inc. Gene Berry
www.lubrizol.com Wickliffe, Ohio VP of IS & Business Processes www.oneamerica.com Indianapolis, Ind. VP of IT & CIO
Mansfield Oil Co. Doug Haugh Orbital Sciences Corp. Ken Bell
www.mansfieldoil.com Gainsville, Ga. Exec.VP & CIO www.orbital.com Dulles,Va. Sr.VP & CIO
Marcus & Millichap Real Estate Services Inc. Rick Peltz Owens & Minor Inc. Rick Mears
www.marcusmillichap.com Encino, Calif. Sr.VP & CIO www.owens-minor.com Mechanicsville,Va. Sr.VP & CIO
Maritz Gil Hoffman Owens Corning David Johns
www.maritz.com Fenton, Mo. Sr.VP & CIO www.owenscorning.com Toledo, Ohio Sr.VP, CIO, & Chief Shared Services Officer
Marriott International Inc. Carl Wilson Paccar Inc Kyle Quinn
www.marriott.com Bethesda, Md. Exec.VP & CIO www.paccar.com Bellevue,Wash. VP & CIO
Marsh Inc. Jim P.Lee Pacific Gas & Electric Co. Patricia Lawicki
www.mmc.com New York, N.Y. CIO www.pge.com San Francisco, Calif. Sr.VP & CIO
Martin Marietta Materials Inc. Chuck Musciano Pacific Northwest National Laboratory Jerry Johnson
www.martinmarietta.com Raleigh, N.C. VP & CIO www.pnl.gov Richland,Wash. CIO
Mayer Brown LLP Howard Niden Parker Hannifin Corp. William G.Eline
www.mayerbrown.com Chicago, Ill. CIO www.parker.com Cleveland, Ohio VP & CIO
McAfee Inc. Mark Tonnesen Parkland Health & Hospital System Jack Kowitt
www.mcafee.com Santa Clara, Calif. Sr.VP & CIO www.parklandhospital.com Dallas,Texas Sr.VP & CIO
McCann Worldgroup Gregory M.Smith Parsons Scott Carl
www.mccann.com New York, N.Y. CIO www.parsons.com Pasadena, Calif. CIO
McCormick & Co.Inc. Jerry Wolfe Partners HealthCare System Inc. Gary Gottleib,MD
www.mccormick.com Sparks, Md. VP of Supply Chain Strategy & CIO www.partners.org Boston, Mass. President & CEO
McCoy Corp. Dennis Strong The Pasha Group David Beckerman
www.mccoys.com San Marcos,Texas Sr.VP & CIO www.pashagroup.com Corte Madera, Calif. VP of IT Services
McGraw-Hill Cos.Inc. Bruce Marcus Paychex Inc. Michael Gioja
www.mcgraw-hill.com New York, N.Y. Exec.VP & CIO www.paychex.com Rochester, N.Y. VP of Product Mgmt. & Development
McKesson Corp. Randall N.Spratt PC Connection Inc. John Polizzi
www.mckesson.com San Francisco, Calif. Exec.VP, CTO & CIO www.pcconnection.com Merrimack, N.H. Sr.VP & CIO
Medline Industries Inc. Mike Penny Pegasus Solutions Inc. Mike Kistner
www.medline.com Mundelein, Ill. CIO www.pegs.com Dallas,Texas CEO
Medtronic Inc. Michael Hedges Pegasystems Inc. Craig Dynes
www.medtronic.com Minneapolis, Minn. CIO www.pega.com Cambridge, Mass. Sr.VP & CFO
Merck J.Chris Scalet Pennsylvania Real Estate Investment Trust Helane Stein
www.merck.com Whitehouse Station, N.J. Exec.VP Global Services & CIO www.preit.com Philadelphia, Pa. Dir. of IT
Mercury Insurance Group Allan Lubitz Penske Truck Leasing Co.LP William L.Stobbart
www.mercuryinsurance.com Los Angeles, Calif. Sr.VP & CIO www.gopenske.com Reading, Pa. Sr.VP of IT
Microsoft Corp. Tony Scott Pfizer Inc. Jeffrey Keisling
www.microsoft.com Redmond,Wash. Corp.VP & CIO www.pfizer.com New York, N.Y. Sr.VP & CIO
Mirant Corp. Bob McClure Pharmaceutical Product Development Inc. Mike Wilkinson
www.mirant.com Atlanta, Ga. VP & CIO www.ppdi.com Wilmington, N.C. Exec.VP & CIO
Mitsubishi Motors North America Inc. Keizo Fuchita PHH Arval Kim Hearn
www.mitsubishicars.com Cypress, Calif. Sr. Exec.VP & CIO www.phharval.com Sparks, Md. VP & CIO
Mohawk Industries Inc. Don Riley Pioneer Investment Management Peter Noll
www.mohawkind.com Calhoun, Ga. CIO & Sr.VP Logistics www.pioneerinvestments.com Boston, Mass. Global CTO
Monsanto Co. Shirley Cunningham Pitt Ohio Express LLC Scott Sullivan
www.monsanto.com St. Louis, Mo. CIO www.pittohio.com Pittsburgh, Pa. CIO & CFO
Monster Worldwide Darko Dejanovic PLS Logistics Services Mark Ohlund
www.monster.com New York, NY Exec.VP & Global CIO & Head of Product www.plslogistics.com Cranberry, Pa. VP,Technology Strategy
Motor Coach Industries International Inc. Gina Papworth PNC Financial Services Group Inc. Anuj Dhanda
www.mcicoach.com Schaumburg, Ill. Exec. Director of IT www.pnc.com Pittsburgh, Pa. Exec.VP & CIO
Movado Group Inc. Frank A.Morelli Polycom Inc. Glenn Noga
www.movadogroup.com Paramus, N.J. Sr.VP Global Business Processes & CIO www.polycom.com Pleasanton, Calif. CIO
Nalco Co. Stewart McCutcheon Poudre Valley Health System Russell Branzell
www.nalco.com Naperville, Ill. CIO www.pvhs.org Fort Collins, Colo. VP & CIO
National Government Services Inc. Tim Masheck PPG Industries Werner Baer
www.ngsmedicare.com Indianapolis, Ind. CIO www.ppg.com Pittsburgh, Pa. VP of IT
National Oilwell Varco Distribution Services Noel Connolly PRC LLC Sean Minter
www.nov.com Houston,Texas Sr.VP of Supply Chain Management www.prcnet.com Plantation, Fla. CIO & COO
Nationwide Children’s Hospital Denise Zabawski Preferred Care Partners Inc. Doug Cormany
www.nationwidechildrens.org Columbus, Ohio CIO & VP IS www.mypreferredcare.com Miami, Fla. Sr.VP & CIO
Nationwide Mutual Insurance Co. Srinivas Koushik Premier Inc. Joseph M.Pleasant/Keith J.Figlioli
www.nationwide.com Columbus, Ohio Sr.VP & CTO www.premierinc.com Charlotte, N.C. Sr.VP & CIO/Sr.VP of Healthcare Informatics
Navy Federal Credit Union Jerry Hermes Premiere Global Services Inc. David M.Guthrie
www.navyfcu.org Vienna,Va. CIO www.pgi.com Atlanta, Ga. CTO
NCR Corp. William VanCuren Presidio Networked Solutions Inc. Dave Hart
www.ncr.com Duluth, Ga. VP & CIO www.presidio.com Greenbelt, Md. Exec.VP & CTO
Nebraska Furniture Mart Inc. David C.Bash PricewaterhouseCoopers LLP Stuart Fulton
www.nfm.com Omaha, Neb. Dir. of IT & CIO www.pwc.com New York, N.Y. U.S. CIO
Region Key Northeast South Midwest West
55 September 2010 © 2010 InformationWeek, Reproduction Prohibited
Analytics.InformationWeek.com InformationWeek
Region A n a l y t i c s R e p o r t
Region
COMPANY HIGHEST-RANKING IT EXECUTIVE COMPANY HIGHEST-RANKING IT EXECUTIVE
Principal Financial Group Inc. Gary Scholten Sony Electronics Inc. Drew Martin
www.principal.com Des Moines, Iowa Sr.VP & CIO www.sony.com San Diego, Calif. Sr.VP & CIO
Procter & Gamble Co. Filippo Passerini South Shore Hospital Inc. E.Delroy Dixon II
www.pg.com Cincinnati, Ohio President, Global Business Services & CIO www.southshorehospital.org South Weymouth,Mass. VP & CIO
Procurestaff Technologies Robert Brooks Southern California Edison Mahvash Yazdi
www.procurestaff.com New York, N.Y. VP of Technology www.sce.com Rosemead, Calif. Sr.VP Business Integration & CIO
Product Partners LLC Steven Winshel Southern Co. Becky Blalock
www.beachbody.com Santa Monica, Calif. CIO www.southerncompany.com Atlanta, Ga. Sr.VP & CIO
The Progressive Group of Insurance Cos. Raymond Voelker Southern Union Co. Steve Hotte
www.progressive.com Mayfield Village, Ohio CIO www.sug.com Houston,Texas Sr.VP of IT
Progressive Medical Inc. Angelo Mazzocco Southwire Co. Sheryl Fikse
www.progressive-medical.com Westerville, Ohio CIO www.southwire.com Carrollton, Ga. Sr.VP & CIO of IT
ProQuest LLC Bipin Patel Sparrow Health System Thomas Bres
www.proquest.com Ann Arbor, Mich. CIO www.sparrow.org Lansing, Mich. VP & CIO
Provena Health John Lynch/John Romeo Split Cooperative LLC Greg Smith
www.provena.org Mokena, Ill. CIO/System Mgr., Networking Services www.splitcoop.com New York, N.Y. Exec.VP & CIO
Prudential Financial Inc. Barbara Koster Sprint Nextel Corp. Peter Campbell
www.prudential.com Newark, N.J. CIO www.sprint.com Overland Park, Kan. Sr.VP of IT
PSC LLC Pamela Rucker SPX Corp. Kevin Eamigh
www.pscnow.com Houston,Texas VP of IT www.spx.com Charlotte, N.C. CIO
Pulte Group Inc. Jerry Batt The Standard Register Co. Joanne Cummins
www.pultegroup.com Bloomfield Hills, Mich. VP & CIO www.standardregister.com Dayton, Ohio CIO
Quintiles Bill Deam Staples Inc. Brian Light
www.quintiles.com Durham, N.C. Exec.VP & CIO, Global IT www.staples.com Framingham, Mass. Exec.VP & CIO
R.L.Polk & Co. Kevin Vasconi Starz Entertainment LLC Ray Milius
www.polk.com Southfield, Mich. Sr.VP & CIO www.starz.com Englewood, Colo. Sr.VP of Programming Operations & IT
R.R.Donnelley & Sons Co. Kenneth E.O’Brien State Street Corp. Christopher Perretta
www.rrdonnelley.com Chicago, Ill. Exec.VP & CIO www.statestreet.com Boston, Mass. Exec.VP & CIO
Rabobank N.A. Erwin Martinez Stein Mart Inc. Andrew Black
www.rabobankamerica.com El Centro, Calif. CIO www.steinmart.com Jacksonville, Fla. CIO & VP of IT
Rackspace Hosting Inc. Steve Mills Steris Corp. Mario Shahidian
www.rackspace.com San Antonio,Texas CIO www.steris.com Mentor, Ohio VP & CIO
Raven Industries Inc. Cal Fickbohm Stewart Information Services Corp. Murshid Khan
www.ravenind.com Sioux Falls, S.D. Dir. of IT www.stewart.com Houston,Texas Sr.VP & CIO
Raytheon Co. Rebecca R.Rhoads SunGard Availability Services LP Donald H.Hopkins
www.raytheon.com Waltham, Mass. VP & CIO www.sungardas.com Wayne, Pa. VP & CIO
Recreational Equipment Inc. Bill Baumann SunGard Higher Education Inc. Darren Wesemann
www.rei.com Kent,Wash. VP of IT www.sungardhe.com Malvern, Pa. CTO & Chief Product Officer
Red Hat Inc. Lee Congdon Sutherland Global Services Inc. Deepak Batheja
www.redhat.com Raleigh, N.C. CIO www.sutherlandglobal.com Pittsford, N.Y. CTO
RedPrairie Corp. Greg Marr Swinerton Inc. Charlene Atkinson
www.redprairie.com Waukesha,Wis. VP, IT & Facility Operations www.swinerton.com San Francisco, Calif. Dir. of Information Management & VP
Regions Financial Corp. Cindy Rogers Sybase Inc. Jim Swartz
www.regions.com Birmingham, Ala. Sr.Exec.VP,Operations & Technology Division www.sybase.com Dublin, Calif. VP & CIO
Rent-A-Center Inc. Tony Fuller Synopsys Inc. Debra Martucci
www.rentacenter.com Plano,Texas Sr.VP of IT & CIO www.synopsys.com Mountain View, Calif. CIO & VP of IT
Republic Services Inc. William G.Halnon Synovus Financial Corp. Lee Lee James
www.republicservices.com Phoenix, Ariz. Sr.VP & CIO www.synovus.com Columbus, Ga. Vice-Chairman, CIO & Chief People Officer
ResMed Michael Zill Taco Bell Corp. Douglas Wines
www.resmed.com San Diego, Calif. CIO www.tacobell.com Irvine, Calif. Director, IT Services
Roche Diagnostics Corp. Kurt Seiler Tech Data Corp. John Tonnison
www.roche-diagnostics.us Indianapolis, Ind. VP, North America Informatics www.techdata.com Clearwater, Fla. Exec.VP & CIO
Ross Stores Inc. Michael K.Kobayashi TECO Energy Inc. Karen M.Mincey
www.rossstores.com Pleasanton, Calif. Exec.VP Supply Chain, Allocation & CIO www.tecoenergy.com Tampa, Fla. VP of IT & CIO
Royal Caribbean Cruises Ltd. Bill Martin Tenet Healthcare Corp. Stephen F.Brown
www.royalcaribbean.com Miami, Fla. VP & CIO www.tenethealth.com Dallas,Texas Exec.VP & CIO
Ryder System Inc. Kevin Bott Teradata Corp. Diana Bolden
www.ryder.com Miami, Fla. Sr.VP & CIO www.teradata.com Miamisburg, Ohio CIO
Sabre Holdings Corp. Barry Vandevier Terremark Worldwide Inc. Leoncio Casusol
www.sabre-holdings.com Southlake,Texas CIO www.terremark.com Miami, Fla. Sr.VP of Planning & IS
Safe Auto Insurance Co. Jeffery L.Fields Tessco Technologies Inc. Doug Rein
www.safeauto.com Columbus, Ohio Sr.VP & CIO www.tessco.com Hunt Valley, Md. Sr.VP, Performance Systems & Operations
Saia Inc. Mark Robinson Teva Pharmaceuticals U.S.A.Inc. Jimmy Z.Wang
www.saia.com Johns Creek, Ga. VP & CIO www.tevausa.com North Wales, Pa. VP & CIO
Saks Inc. Michael Rodgers Texas Health Resources Inc. Edward Marx
www.saksincorporated.com New York, N.Y. Exec.VP of Service Operations & CIO www.texashealth.org Arlington,Texas Sr.VP & CIO
Salesforce.com Inc. Kirsten Wolberg Thermo Fisher Scientific Inc. Ina Kamenz
www.salesforce.com San Francisco, Calif. CIO www.thermofisher.com Waltham, Mass. VP & CIO
Salvation Army U.S.A.Western Territory Clarence White TIAA-CREF Marvin Adams
www.salvationarmy.usawest.org Long Beach, Calif. CIO & IT Secretary www.tiaa-cref.org New York, N.Y. Exec.VP,Technology and Operations
Sanford Health Arlyn Broekhuis T-Mobile USA Inc. Cole Brodman
www.sanfordhealth.org Sioux Falls, S.D. VP & CIO www.t-mobile.com Bellevue,Wash. Chief Technology & Innovation Officer
Sanofi-aventis U.S.LLC Ruth Thorpe/Dina Di Maria Tower Automotive LLC Orrie Jones
www.sanofi-aventis.us Bridgewater, N.J. VP & CIO/AVP IS www.towerautomotive.com Livonia, Mich. VP & CIO
SAS Suzanne Gordon Transatlantic Holdings Inc. George Di Martino
www.sas.com Cary, N.C. VP of IT & CIO www.transre.com New York, N.Y. Sr.VP & CIO
Savvis Inc. Bryan Doerr Transitions Optical Inc. Maria Zabetakis
www.savvis.net St. Louis, Mo. CTO www.transitions.com Pinellas Park, Fla. Americas IT Director
Schneider National Inc. Judith Lemke Transplace Vincent Biddlecombe
www.schneider.com Green Bay,Wis. Exec.VP & CIO www.transplace.com Dallas,Texas CTO
Schuff International Inc. Ron Huisinga TransUnion LLC Ian Drury/Paul Fritz
www.schuff.com Phoenix, Ariz. CIO www.transunion.com Chicago, Ill. CIO U.S.Info.Svcs./Exec.VP U.S.Tech.Ops.
Scottrade Inc. Ian Patterson Travelport Ltd. Sue Powers
www.scottrade.com St. Louis, Mo. CIO www.travelport.com Parsippany, N.J. CEO IT Services & Software
Sealed Air Corp. Warren Kudman The TriZetto Group Inc. Alan Cullop
www.sealedair.com Elmwood Park, N.J. VP & CIO www.trizetto.com Newport Beach, Calif. Sr.VP & CIO
Securian Financial Group Inc. Jean Delaney Nelson T-Systems David Andrews
www.securian.com St. Paul, Minn. Sr.VP & CIO www.t-systemsus.com Phoenix, Ariz. VP of ICT Operations
Sharp HealthCare William Spooner TTX Co. Bruce G.Schinelli
www.sharp.com San Diego, Calif. Sr.VP & CIO www.ttx.com Chicago, Ill. CIO & VP of IT
Shaw Industries Group Inc. Roddy McKaig Tuthill Corp. Chad Gabriel
www.shawfloors.com Dalton, Ga. VP & CIO www.tuthill.com Burr Ridge, Ill. Director, Applications Development
The Sherwin-Williams Co. Thomas Lucas TXU Energy Retail Co.LLC Kevin Chase
www.sherwin.com Cleveland, Ohio CIO www.txu.com Dallas,Texas CIO
Siemens Healthcare John Glaser Tyson Foods Inc. Gary D.Cooper
www.medical.siemens.com/us Malvern, Pa. CEO www.tyson.com Springdale, Ark. Sr.VP & CIO
Sirva Inc. Erik Keller UMC Health System Bill Eubanks
www.sirva.com Westmont, Ill. CIO www.umchealthsystem.com Lubbock,Texas Sr.VP & CIO
Solutia Inc. Rahul Goturi Unifi Inc. Mark Sidden
www.solutia.com St. Louis, Mo. VP & CIO www.unifi.com Greensboro, N.C. CIO
Region Key Northeast South Midwest West
Region A n a l y t i c s R e p o r t
Region
COMPANY HIGHEST-RANKING IT EXECUTIVE COMPANY HIGHEST-RANKING IT EXECUTIVE
UniGroup Inc. Randall C.Poppell Wal-Mart Stores Inc. Rollin Ford
www.unigroupinc.com Fenton, Mo. Sr.VP of Strategic Planning & CIO www.walmart.com Bentonville, Ark. Exec.VP & CIO
United Stationers Supply Co. S.David Bent Waste Management Inc. Puneet Bhasin
www.unitedstationers.com Deerfield, Ill. Sr.VP of eBusiness Services & Corp. CIO www.wm.com Houston,Texas Sr.VP & CIO
University of Arkansas for Medical Sciences Rhonda Jorden Webcor Builders LP Gregg Davis
www.uams.edu Little Rock, Ark. Interim CIO www.webcor.com San Mateo, Calif. Sr.VP & CIO
University of Pennsylvania Health System Michael Restuccia Websense Inc. John McCormack
www.pennmedicine.org Philadelphia, Pa. VP & CIO www.websense.com San Diego, Calif. President
University of Pittsburgh Medical Center (UPMC) Daniel S.Drawbaugh WellPoint Inc. Lori Beer
www.upmc.com Pittsburgh, Pa. Sr.VP & CIO www.wellpoint.com Indianapolis, Ind. Exec.VP & CIO
University of Wisconsin Hospitals and Clinics Michael J.Sauk Wells Fargo & Co. Avid Modjtabai
www.uwhealth.org Madison,Wis. VP & CIO www.wellsfargo.com San Francisco, Calif. Exec.VP,Technology and Operations
Unum Group Kathy Owen Werner Enterprises Inc. Anthony M.DeCanti
www.unum.com Chattanooga,Tenn. Sr.VP & CIO www.werner.com Omaha, Neb. VP of Analysis & Information Systems
UPS Inc. David Barnes West Bend Mutual Insurance Co. Tracey Berg
www.ups.com Atlanta, Ga. Sr.VP & CIO www.thesilverlining.com West Bend,Wis. IT Business Applications & CIO
USAA Greg Schwartz West Interactive Corp. Greg Bishop
www.usaa.com San Antonio,Texas Sr.VP of IT & CIO www.westinteractive.com Omaha, Neb. Sr.VP of Business Solutions
USANA Health Sciences Roy Truett Western Corporate Federal Credit Union (WesCorp) Gene Berger
www.usana.com Salt Lake City, Utah CIO www.wescorp.org San Dimas, Calif. VP of IT
UST Global Inc. Robert Dutile Wet Seal Inc. Jon Kubo
www.ust-global.com Aliso Viejo, Calif. CIO www.wetsealinc.com Foothill Ranch, Calif. VP & CIO
Valassis Communications Inc. Steve Carrington Wheels Inc. Steven Loos
www.valassis.com Livonia, Mich. VP & CIO www.wheels.com Des Plaines, Ill. VP of IT & CIO
Valmont Industries Inc. Steve Branscombe Whirlpool Corp. Kevin Summers
www.valmont.com Omaha, Neb. VP of IT www.whirlpoolcorp.com Benton Harbor, Mich. Corp.VP & Global CIO
The Vanguard Group Inc. Paul Heller WinWholesale Inc. Steve Hangen
www.vanguard.com Malvern, Pa. Managing Dir. & CIO www.winwholesale.com Dayton, Ohio CIO
Verizon Communications Inc. Shaygan Kheradpir Wipro Technologies Laxman K.Badiga
www.verizon.com New York, N.Y. Exec.VP & CIO www.wipro.com Mountain View, Calif. CIO
Verizon Wireless Ajay Waghray Wuesthoff Health System Inc. David L.Barnhart
www.verizonwireless.com Basking Ridge, N.J. VP of IS & CIO www.wuesthoff.org Rockledge, Fla. CIO
Veyance Technologies Inc. Nathaniel Leonard W.W.Grainger Inc. Timothy M.Ferrarell
www.veyance.com Fairlawn, Ohio VP & GM of IT, Logistics, Procure. & Seawing www.grainger.com Lake Forest, Ill. Sr.VP & CIO
VF Corp. Martin Schneider Xcel Energy Inc. David C.Harkness
www.vfc.com Greensboro, N.C. VP & CIO www.xcelenergy.com Minneapolis, Minn. VP, Business Systems & CIO
Vision-Ease Lens Flo Kinzel Xerox Corp. John McDermott
www.vision-ease.com Ramsey, Minn. CIO www.xerox.com Norwalk, Conn. Corp.VP & CIO
VMware Inc. Mark Egan XO Communications Robert Geller
www.vmware.com Palo Alto, Calif. CIO www.xo.com Herndon,Va. CIO
VWR International LLC Charles R.Patel YRC Worldwide Inc. Michael Naatz
www.vwr.com West Chester, Pa. Sr.VP & CIO www.yrcw.com Overland Park, Kan. Pres., Cust. Care Div. & Chief Cust. Officer
Walgreen Co. Tim Theriault ZSL Inc. Shivakumar Kandaswamy
www.walgreens.com Deerfield, Ill. CIO www.zslinc.com Edison, N.J. Exec.VP of IT & R&D
Region Key Northeast South Midwest West
Government Innovators
Government agencies get criticized regularly for their all-too-common IT security lapses, gross inefficiencies, and
billion-dollar boondoggles. Yet the public sector also can be surprisingly innovative in its technology initiatives,
with projects that lay the groundwork for new services, improved computer and national security, and more
effective government.
Intelligent Mail is one of 15 projects—10 [ FBI’s new Next Generation Workstations enable ad hoc collaboration
A n a l y t i c s R e p o r t
by federal agencies, five by state and local governments—selected by the editors of InformationWeek
Government for recognition in our 2010 Government IT Innovators contest. The winners range from a
lightweight technology developed by the Air Force for more secure Web browsing to the Federal
Aviation Administration’s Automatic Dependent Surveillance-Broadcast system, a foundational technol-
ogy for the agency’s “NextGen” air traffic control system. Four of our chosen projects are healthcare-
related, a reflection of the central role that healthcare IT now occupies at all levels of government.
The agency first overhauled its network infrastructure, replacing ATM/frame relay gear with IP/
Multiprotocol Label Switching. Its new Next Generation Network increases bandwidth and reduces
latency in 800 locations. As that project wound down, the FBI began replacing outdated PCs with
sleek new systems featuring 24-inch monitors, integrated IP phones, and collaboration tools such as
presence awareness, instant messaging, and videoconferencing. FBI personnel can now quickly estab-
lish multiparty videoconferences for unscheduled meetings and information sharing.
A n a l y t i c s R e p o r t
LPS-Remote Access was created in mid-2009 in response to the H1N1 pandemic threat. The H1N1
threat never materialized to the extent feared, but the software has proved to have a range of potential
uses, such as telecommuting during weather-related office closings. It has been approved for emer-
gency telecommuting by the Department of Defense.
A cornerstone of GSA’s cloud computing program is the Apps.gov portal, where government employ-
ees can subscribe to pre-approved productivity and business apps offered as a service. The pending
introduction of infrastructure as a service on Apps.gov—including storage, servers, and Web host-
ing—will make it possible for government agencies to sign up for on-demand, virtualized IT
resources with the same ease that businesses now tap into Amazon’s Elastic Compute Cloud. That
should make federal IT operations more flexible and adaptable.
Department of Transportation
Given its authority over highways and railways, it seems appropriate that the Department of
Transportation is charting a course into open government. The department’s Regulation Room initia-
tive, done in conjunction with the Cornell e-Rulemaking Initiative, employs social networking to
encourage public input into DOT policy-making, and the department hosted an open government
workshop in January that drew attendees from three dozen agencies. DOT’s efforts have received a
thumbs-up in all 10 categories of the White House’s open government dashboard. In August, the
agency was recognized by federal CTO Aneesh Chopra for its Regulation Room, as well as for the
“leadership, governance, and culture change” embodied in its approach.
A n a l y t i c s R e p o r t
A n a l y t i c s R e p o r t
In one example of how that API works, more than 100 pages of H1N1-related content were shared
with Flu.gov. This type of syndicated information sharing, while good business practice during the
best of times, becomes critically important during public health emergencies.
The initiative’s goals include increasing accountability and public trust by providing better
A n a l y t i c s R e p o r t
access to government data. There’s also an internal version for city officials that has reduced the
labor associated with developing reports and given city managers a window into operational
effectiveness.
The system has been used to create an evacuation plan in the event of a major forest fire and to
plan security around school events. It took three IT staffers four months to develop i-Map. The
county pegs its annual savings at $750,000, based on the cost to acquire the same capabilities
on a commercial platform.
The state plans to use the system in other ways. For example, it will
connect clients with staffers who have expertise in a particular
area—say, veterans claims—but who are located in another office.
The state also plans to hold unemployment claim hearings and
advisory board meetings over video, and it will potentially let
clients who can’t get into an office use PC-based videoconferencing
to meet with staff. [ Videoconferences get closed captions
A n a l y t i c s R e p o r t
The project required development of a Web-based health record system, MSI Connect, to cap-
ture data such as emergency room admissions and discharges, diagnosis and procedure codes,
prescriptions, and specialty referrals. Since deploying the system last year, the county has stud-
ied its effects and has found improved quality of care for patients. The ability to refer patients
electronically from the emergency department to their primary care physicians led to a 52%
decrease in the likelihood of a related return visit to the ER, resulting in estimated annual sav-
ings of $636,000.
For example, when furloughs created long lines at Department of Motor Vehicles offices, eServices
turned to Twitter to answer questions. Elsewhere, a widget was created for the state’s Employment
Development Department that combines the department’s news, Twitter, and YouTube services for
the public. Within two months, the widget had received 2 million impressions.
California’s eServices Office also worked with six other state organizations to develop and
launch a Web site, at business.ca.gov, in support of the Office of Economic Development, after
that office was created through the consolidation of other departments. As the eServices Office
has demonstrated, it’s necessary to do more with less when less is all you’ve got.
A n a l y t i c s R e p o r t
One priority: Enable firms to adjust their business models and operations in response to the
recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act. “Banks have got
to figure out a different way to make money than fee income,” says Jim Eckenrode, research exec-
utive for banking at TowerGroup, a financial service research and advisory firm. “You have to
work a lot harder, while giving the customer confidence that your processes are consistent, fair,
and easily understood.”
As an industry driven by data, financial CIOs enjoy the biggest IT budgets in the InformationWeek
500. They reported an average IT budget of
$448 million compared with an all-industry Tech Innovation Inside Banking
average of $243 million, and the financial A snapshot of how banking and financial & Financial Services
IT budget represents 8.2% of company rev- services companies are innovating
enue compared with 2.9% across all indus-
tries. With these big budgets, financial serv-
ices firms engage in higher levels of out-
Introduce new IT-led products or services
of companies expect
sourcing than companies in other indus- 2010 IT spending
Make business processes more efficient to exceed 2009
tries. Fully 70% of the industry’s CIOs 39%
report doing offshore IT outsourcing vs.
58% for all industries, while 46% send
business processes offshore vs. 32%.
Lower IT or business costs
34%
Get better business intelligence to more
employees, faster
32%
32% of companies’ CIOs
are responsible
for innovation
A n a l y t i c s R e p o r t
IT spending in 2010 is expected to increase for just over half of the companies surveyed; only 17% foresee a
decline in spending. This is a welcome reversal from the downturn of the past two years. “If you go back 12
to 24 months, there was a significant halt to any new capital expenditures,” says Steve Martin, a partner at
Pace Harmon, an advisory and management consulting firm that specializes in helping companies manage
outsourcing relationships. “This year, companies are starting to recognize that they have to catch up and rein-
vest in infrastructure and applications.”
Online job site Monster.com has rebuilt its infrastructure in the last three years, opening two new data cen-
ters, says global CIO Darko Dejanovic. Monster also has launched new products recently including 6Sense,
a semantic search technology that ranks and
scores job candidates. It’s technology no one
Tech Innovation Inside Consulting
else has, Dejanovic says. “We look for prod- A snapshot of how consulting and business & Business Services
20 40 ucts
60 that
80 set
100 us apart from the competition. I services companies are innovating
think this clearly does that,” he adds.
Rank
ment in your home, or wherever you want to Create a new business model or revenue stream Monster Worldwide 10
work, that effectively emulates an office envi- 21% ProQuest LLC 17
ronment.” Acxiom Corp. 18
0 40 60 80 100
Improve interaction with partners and suppliers
12% iQor Inc. 27
Move organization toward an eco-friendly Dunham & Smith Agencies 30
—Ivan Schneider and Marianne Kolbasuk IT environment
8%
20 40
McGee (mmcgee@techweb.com)
60 80 100
Data: InformationWeek 500 survey of 66 consulting and business services companies
A n a l y t i c s R e p o r t
They were “going flat out” when oil prices were $125 to $140 per barrel in 2008, says Curt Mortenson, a
principal at Deloitte Consulting. “When everyone’s making that kind of money ... cost is less of a consid-
eration.” Now, with oil hovering around $75 per barrel and natural gas prices down 60% from two years
ago, companies are focusing on process efficiency and maximizing margins.
Business process innovation was cited as a focus of 75% of the industry’s CIOs. An example would be
deploying monitoring equipment to oil rigs to track the maintenance levels of components, to maximize rig
uptime. “It’s about replacing particular items based on wear indicators versus ‘hot-shotting’ materials out to
these rigs when they go down,” Mortenson
says. Location data matters for those type of
uses, as well as for logistics that are a key part Tech Innovation Inside Energy
of the business; 58% of the sector’s CIOs are A snapshot of how energy and utilities & Utilities
adopting GPS-enabled or location-aware Web companies are innovating
0 20 40 60 80 100
of companies expect
Mansfield Oil, sees the combination of 2010 IT spending
Lower IT or business costs to exceed 2009
mobile data collection and widespread 38%
machine-to-machine connectivity as the next
big force in the industry. “We’re seeing every
piece of physical hardware across the supply
Improve customer service
29%
0 40 60 80 100
66 September 2010 © 2010 InformationWeek, Reproduction Prohibited
InformationWeek
Analytics.InformationWeek.com
A n a l y t i c s R e p o r t
The federal government’s HITECH program is providing more than $20 billion in monetary incen-
tives to healthcare providers that meaningfully use digital records, and that’s undoubtedly a signifi-
cant factor in the IT spending plans of these companies. Three-quarters of healthcare companies
expect to spend more on IT this year compared with last. That’s significantly ahead of the
InformationWeek 500 overall, where 57% of companies expect 2010 spending to exceed 2009.
Average revenue for InformationWeek 500 healthcare companies is $3.18 billion, and they expect to
spend 3.5% of that on IT this year, up from 2.9% in 2009. That’s also significantly higher than the 2.9%
of revenue that InformationWeek 500 com-
panies overall expect to spend. The health-
0 20 40 60
care 80 100
spending level is similar to the spend- Tech Innovation Inside Healthcare
A snapshot of how healthcare and medical & Medical
ing plans of two industries that have close companies are innovating
ties to healthcare: biotechnology and phar-
maceuticals (3.7% of revenue is expected to
be spent on IT), and insurance (3.3%).
Make business processes more efficient
employees, faster
55%
Get better business intelligence to more
50%
3.5%
of annual
revenue spent
on IT, on average
of companies expect
2010 IT spending
The top three technologies that Introduce new IT-led products or services to exceed 2009
50%
InformationWeek 500 healthcare compa-
nies say boosted productivity most in the
last 12 months were business intelligence
tools (58%), collaboration software (50%),
Lower IT or business costs
37%
Rank
Videoconferencing ranked significantly University of Pittsburgh Medical Center (UPMC) 5
Pursue new global opportunities
higher among healthcare companies than 10% Healthways Inc. 8
40 60 80 most100others, driven by telehealth initiatives.
Improve interaction with partners and suppliers
Cincinnati Children' s Hospital Med. Center 13
5% Sparrow Health System 22
Move organization toward an eco-friendly Concentra Inc. 33
—Marianne Kolbasuk McGee IT environment
0%
Data: InformationWeek 500 survey of 62 healthcare and medical companies
40 60 80 100
A n a l y t i c s R e p o r t
[ INDUSTRIES | Insurance ]
In the course of this prolonged decline in premiums, the industry has realized it has to do more than quick-
fix cost-cutting and do some long-term restructuring. In the past, insurance companies in a slowdown would
just “fire a whole bunch of people,” says Karen Pauli, research director in TowerGroup’s insurance practice.
Instead, smart CIOs continue to spend on IT-based process efficiency projects that reduce paperwork,
increase standardization, and automate decision-making, Pauli says. These can be expensive, multiyear com-
mitments. But insurers have had the benefit of relatively light catastrophe seasons—hurricanes and other
storms—the past three to four years, so the smart ones have used this period to fund long-term productivi-
ty-enhancing projects.
Evidence of this can be found in the InformationWeek 500. Only 10% of insurers expect to cut their IT budg-
ets this year, compared with 20% for all
industries; 62% of insurers have higher IT
budgets than last year, compared with 57%
Tech Innovation Inside Insurance
A snapshot of how insurance companies
20 40 60
for 80all industries.
100
are innovating
branches and primarily serves military per- Engage customers in new ways
28%
5
sonnel. It first let customers deposit checks
using home scanners; the smartphone app Create a new business model or revenue stream Insurance
26%
Companies
grew from that. CIO Greg Schwartz says Get better business intelligence to more
employees, faster
Deposit@Mobile delivers cost savings because 21% Rank
it cuts the amount of mail that USAA han- Improve interaction with partners and suppliers USAA 7
80 dles. Just as important, the app “has clearly 15% Harleysville Group Inc. 21
60 100
broken down barriers for members who were Stewart Information Services Corp. 34
Pursue new global opportunities
5% Acuity, A Mutual Insurance Co. 37
reluctant to do branchless banking,” he says.
Move organization toward an eco-friendly Aetna Inc. 50
IT environment
40 60 80 100 3%
—Ivan Schneider and Anthony O’Donnell Data: InformationWeek 500 survey of 39 insurance companies
(aodonnell@techweb.com)
68 September 2010 © 2010 InformationWeek, Reproduction Prohibited
InformationWeek
Analytics.InformationWeek.com
A n a l y t i c s R e p o r t
“Tech firms look to use themselves as case studies on how to help their customers move forward,” says
Zeus Kerravala, distinguished research fellow at the Yankee Group. “If they’re not going to lead the indus-
try, who will?”
Hewlett-Packard spent three years and about $1.7 billion overhauling its internal IT operations. The cen-
terpiece of that effort was the consolidation
of more than 85 internal data centers of
5,000 square feet or more, plus another 400 Tech Innovation Inside Information
smaller facilities, to six energy-efficient data A snapshot of how information technology Technology
centers. companies are innovating
20 40 60 80 100
of companies expect
able platform,” says executive VP and CIO Get better business intelligence to more 2010 IT spending
employees, faster to exceed 2009
Randy Mott, but it also cut IT costs and let 38%
HP’s IT organization deliver innovation
faster. And, of course, it positioned the
company “to highlight the HP portfolio of
Improve Web operations and customer experience
38%
40 60
69
80
September
100
2010 © 2010 InformationWeek, Reproduction Prohibited
InformationWeek
Analytics.InformationWeek.com
A n a l y t i c s R e p o r t
inventory and supply chains, Kerravala says. “No vendor wants to get caught holding inventory, but
you don’t want product delays either,” he says. “It creates quite a conundrum.”
IT companies in the InformationWeek 500 also are relatively advanced in their global IT strategies.
A much larger percentage of them report expanding their IT operations and hiring outside of the
U.S. (78% vs. 37%), making global support and development part of most IT workers’ regular jobs
(68% vs. 49%), and integrating IT workers with global business operations (60% vs. 44%).
However, only half of the IT vendors we surveyed are doing offshore IT outsourcing, compared with
58% for all industries.
CIOs in IT companies are bullish when it comes to their IT budgets. Fifty-nine percent of them
expect to spend more on IT this year than they did last year. Only 10% expect their IT budgets to
decline this year, compared with 20% in all industries.
As with the broader InformationWeek 500, the higher IT spending can be attributed in part to the
need to do upgrades that were postponed during the recession. “Y2K was the last time we saw a big
upgrade cycle,” Kerravala says. “I’d expect the age of equipment alone to drive spending.”
A n a l y t i c s R e p o r t
Making business processes more efficient tops the list of innovation plans for 55% of the
InformationWeek 500 CIOs at these companies. For Old Dominion Freight Line, a nationwide transport
company with a fleet of 5,500 trucks, that’s meant overhauling its claims management system to move
from a paper-based process to a completely electronic one. Ninety-nine percent of claims are now
processed automatically or handled during the initial customer call.
of companies expect
them had high claims. “We went to that 2010 IT spending
shipping location and worked with them on Introduce new IT-led products or services to exceed 2009
39%
packaging, and we did some things on our
end, Erdner says. “We kept that customer.”
Rank
tion rates than for the InformationWeek 500 Improve interaction with partners and suppliers Old Dominion Freight Line Inc. 15
overall. Sixty-one percent of these companies 12% Armada Supply Chain Solutions 32
are using hosted collaborative applications, Waste Management Inc. 36
Pursue new global opportunities
9% Penske Truck Leasing Co. LP 64
higher than the overall 55%. Move organization toward an eco-friendly The Pasha Group 73
40 60 80 100 IT environment
6%
—Ivan Schneider and Andrew Conry-Murray Data: InformationWeek 500 survey of 33 logistics and transportation companies
0 40 60 80 100
(acmurray@techweb.com)
A n a l y t i c s R e p o r t
[ INDUSTRIES | Manufacturing ]
Technology initiatives that have improved performance for these CIOs include business intelligence tools
for 50% of them and new types of collaboration software for 48%. These percentages are slightly lower
than across all InformationWeek 500 industries. For 61% of manufacturing CIOs, future innovation plans
focus on efficient business processes, ahead of the all-industry rate of 54%.
Efficiency is a big focus at Lockheed Martin. Four years ago it supported 40 systems, some more than 30
years old, just for procurement and payment. “We looked at the cost of a single solution, we looked at the
cost of the over 40 legacy systems, and we looked at the cost of modernizing under each of the five busi-
ness units,” says Lockheed procure-to-pay VP Jon Crump. “... Ultimately, everyone agreed on a single sys-
tem based on SAP.”
1.9%
40 60 80 100
shore IT outsourcing, 50% integrate IT work Make business processes more efficient of annual
61% revenue spent
with global business operations, and 48% are Get better business intelligence to more on IT, on average
expanding IT operations outside the United employees, faster
36% of companies expect
States, all of which exceed the all-industry 2010 IT spending
Introduce new IT-led products or services to exceed 2009
percentages. 32%
A n a l y t i c s R e p o r t
Figure 5
R1460910_IW500_chart 2
73 September 2010 © 2010 InformationWeek, Reproduction Prohibited
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A n a l y t i c s . I n f o r m a t i o n We e k . c o m
A n a l y t i c s R e p o r t
Figure 6
Global IT Strategies
Which of the following global IT strategies are in place in your organization?
R1460910_IW500_chart 5
A n a l y t i c s R e p o r t
Figure 7
R1460910_IW500_chart 6
A n a l y t i c s R e p o r t
Figure 8
R1460910_IW500_chart 7
A n a l y t i c s R e p o r t
Figure 9
R1460910_IW500_chart 8
77 September 2010 © 2010 InformationWeek, Reproduction Prohibited
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A n a l y t i c s . I n f o r m a t i o n We e k . c o m
A n a l y t i c s R e p o r t
Figure 10
Yes
25%
75%
No
Figure 11
R1460910_IW500_chart 9
IT-Driven Patents and Copyrights: 2010 vs. 2009
Has your organization patented, trademarked, or copyrighted any IT architectures,
products, services, or IT-driven business processes in the past 12 months?
2010 2009
Yes
25%
26%
No
75%
74%
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives
R1460910_IW500_chart 10
A n a l y t i c s R e p o r t
Figure 12
R1460910_IW500_chart
Figure 13 11
Reporting Structure for CIO
To whom does the CIO of your organization report?
CEO/president
45%
Other
9%
Other senior 8%
corporate executive
1%
CTO
16% 21%
COO
CFO
R1460910_IW500_chart 12
79 September 2010 © 2010 InformationWeek, Reproduction Prohibited
InformationWeek
A n a l y t i c s . I n f o r m a t i o n We e k . c o m
A n a l y t i c s R e p o r t
Figure 14
CEO/president
45%
41%
CFO
21%
23%
COO
16%
16%
CTO
1%
1%
Line-of-business executive
0%
1%
Other senior corporate executive
8%
8%
Other
9%
10%
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives
R1460910_IW500_chart 13
A n a l y t i c s R e p o r t
Figure 15
R1460910_IW500_chart 14
A n a l y t i c s R e p o r t
Figure 16
Telecommunications
63%
N/A
Business process management/improvement
27%
N/A
Innovation
25%
16%
Operations
11%
8%
Procurement
8%
N/A
Global business services
5%
N/A
Logistics/supply chain
5%
5%
HR
1%
2%
Manufacturing
0%
1%
Other
30%
40%
Our CIO is not officially responsible for any areas outside of IT
18%
48%
Note: Multiple responses allowed
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives
R1460910_IW500_chart 15
82 September 2010 © 2010 InformationWeek, Reproduction Prohibited
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A n a l y t i c s . I n f o r m a t i o n We e k . c o m
A n a l y t i c s R e p o r t
Figure 17
R1460910_IW500_chart
Figure 18
16
R1460910_IW500_chart 17
83 September 2010 © 2010 InformationWeek, Reproduction Prohibited
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A n a l y t i c s . I n f o r m a t i o n We e k . c o m
A n a l y t i c s R e p o r t
Figure 19
IT Budget Allocation
What percentage of your organization’s projected 2010 worldwide IT budget,
Appendix
including capital and operating expenses, is devoted to the following?
Ongoing IT operations
63%
37%
New IT project initiatives
Figure 20
R1460910_IW500_chart 18
IT Budget Allocation: 2010 vs. 2009
What percentage of your organization’s projected worldwide IT budget,
including capital and operating expenses, is devoted to the following?
2010 2009
Ongoing IT operations
63%
66%
New IT project initiatives
37%
34%
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives
R1460910_IW500_chart 19
A n a l y t i c s R e p o r t
Figure 21
IT Budget Trend
What percentage of your company’s worldwide projected annual
Appendix
sales revenue does your total worldwide IT budget represent?
Note: Percentages represent medians. Additional data from InformationWeek Analytics Surveys
of InformationWeek 500 executives, 2002-2009
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives
R1460910_IW500_chart 20
A n a l y t i c s R e p o r t
Figure 22
Industry
Please confirm your organization’s primary industry.
Automotive
1%
Banking and financial services
8%
Appendix
Biotechnology and pharmaceuticals
2%
Chemicals
1%
Construction and engineering
2%
Consulting and business services
13%
Consumer goods
5%
Distribution
4%
Electronics
2%
Energy and utilities
5%
Healthcare and medical
12%
Hospitality and travel
3%
Information technology
10%
Insurance
8%
Logistics and transportation
7%
Manufacturing
9%
Media and entertainment
2%
Metals and natural resources
1%
Retail: General merchandising
1%
Retail: Specialty merchandising
2%
Telecommunications
2%
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives
A n a l y t i c s R e p o r t
Figure 23
Public
61%
39%
Privately held
R1460910_IW500_chart
Figure 24 22
IT Spending Expectations
Will your total IT spending in 2010 exceed, be equal to, or be less than your 2009 IT spending?
Equal to
Exceed 23%
57%
20%
Less than
A n a l y t i c s R e p o r t
Figure 25
Exceed
57%
37%
Equal to
23%
21%
Less than
20%
42%
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives
R1460910_IW500_chart 24
Figure 26
R1460910_IW500_chart 25
A n a l y t i c s R e p o r t
Figure 27
89 September 2010
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InformationWeek
A n a l y t i c s . I n f o r m a t i o n We e k . c o m
A n a l y t i c s R e p o r t
Figure 28
We’re using wikis, blogs, or social networking tools for external collaboration
81%
70%
We’re using software as a service
81%
74%
We’re using storage, compute, or other cloud computing services
71%
45%
We’re using hosted collaborative applications (e.g., calendaring, spreadsheets, document management)
63%
54%
We’re creating mashups that combine Web, enterprise content, and applications in new ways
53%
47%
We’re using GPS-enabled or location-aware Web applications
36%
22%
Employees are encouraged to use consumer-oriented online applications they find useful
34%
25%
We’re using platform as a service (e.g., Microsoft Windows Azure, Google App Engine)
27%
15%
Note: Multiple responses allowed
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives
R1460910_IW500_chart 27
A n a l y t i c s R e p o r t
Figure 29
R1460910_IW500_chart 28
A n a l y t i c s R e p o r t
Figure 30
A n a l y t i c s R e p o r t
Figure 31
Yes
54%
18%
No
46%
82%
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives
R1460910_IW500_chart
Figure 32 30
Top 100: Reporting Structure for CIO
To whom does the CIO of your organization report?
Top 100 The Rest
CEO/president
60%
41%
COO
13%
17%
CFO
15%
23%
CTO
1%
1%
Other senior corporate executive
3%
9%
Other
8%
9%
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives
R1460910_IW500_chart 31
93 September 2010 © 2010 InformationWeek, Reproduction Prohibited
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A n a l y t i c s . I n f o r m a t i o n We e k . c o m
A n a l y t i c s R e p o r t
Figure 33
Telecommunications
63%
63%
Business process management/improvement
33%
26%
Innovation
32%
24%
Operations
14%
11%
Global business services
12%
4%
Procurement
10%
7%
Logistics/supply chain
7%
4%
HR
0%
2%
Other
34%
30%
Our CIO is not officially responsible for any areas outside of IT
15%
19%
Note: Multiple responses allowed
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives
R1460910_IW500_chart 32
A n a l y t i c s R e p o r t
Figure 34
Figure 35
R1460910_IW500_chart 33
Top 100: CIO Involvement With New Product Development
What are the most important ways in which your CIO
is involved in developing new products for your company?
Top 100 The Rest
95 September 2010
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InformationWeek
A n a l y t i c s . I n f o r m a t i o n We e k . c o m
A n a l y t i c s R e p o r t
Figure 36
Ongoing IT operations
60%
65%
New IT project initiatives
40%
35%
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives
R1460910_IW500_chart
Figure 37 35
Top 100: IT Spending Expectations
Will your total IT spending in 2010 exceed, be equal to, or be less than your 2009 IT spending?
21% Less
20%
Less
than than
19% 24%
Equal to Equal to
R1460910_IW500_chart 36
A n a l y t i c s R e p o r t
Figure 38
Appendix
R1460910_IW500_chart 37