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September 2010

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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

Report ID: R1460910


InformationWeek
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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

64 Banking & Financial Services


O

65 Consulting & Business Services


66 Energy & Utilities
E

67 Healthcare & Medical


L

68 Insurance
B

69 Information Technology
71 Logistics & Transportation
A

72 Manufacturers Look to Cut Costs


T

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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

83 Figure 17: CIO Involvement with New Product Development


83 Figure 18: CIO Involvement with New Product Development: 2010 vs. 2009
84 Figure 19: IT Budget Allocation
E

84 Figure 20: IT Budget Allocation: 2010 vs. 2009


L

85 Figure 21: IT Budget Trend


B

86 Figure 22: Industry


97 Figure 23: Public vs. Private
A
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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
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O
E
L
B
A
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Research Synopsis
Survey Name: 2010 InformationWeek 500

Survey Date: December 2009 to April 2010


Region: United States
Number of Respondents: 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.

For more information, please visit the InformationWeek 500 Resource


Center at informationweek.com/iw500. Send questions pertaining to the
process to iw500@techweb.com.

ABOUT US | InformationWeek Analytics’ experienced analysts arm business technology


decision-makers with real-world perspective based on a combination of qualitative and quantitative
research, business and technology assessment and planning tools, and technology adoption best
practices gleaned from experience.
If you’d like to contact us, write to managing director Art Wittmann at awittmann@techweb.com,
executive editor Lorna Garey at lgarey@techweb.com and research managing editor Heather Vallis
at hvallis@techweb.com. Find all of our reports at www.analytics.informationweek.com.

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he wiki has left the building.

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.

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Analytics is another screaming IT priority. Fifty-three percent of InformationWeek 500 compa-


nies cite deploying business intelligence tools as a key initiative that improved productivity, and
36% cite getting BI to more employees more quickly as a key 2010 innovation plan, the third-
most-often cited priority.

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

How The InformationWeek 500 Are Selected

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)

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did the nausea last after the last treatment?” The other two apps let people track migraine and
diabetes stats.

IT Must Know The Customer


Bringing in any new customer-facing application is tricky, though, requiring business technolo-
gists to thread between what’s possible and what works. In the area of collaboration and social
networking, home improvement retailer McCoy’s built a place on its Web site for independent
contractors to post their profiles, and it took the gutsy step of letting them interact directly
with McCoy’s customers. Wet Seal, a retailer of clothing for teenage girls, lets girls build and
rate outfits on its social networking site. It learned that customers look at outfits on the site,
but those outfits really go viral only when girls post them to their Facebook pages.

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.”

The survey numbers tell us that companies,


Find more at informationweek.com/500 en masse, are pushing collaboration beyond
the firewall. But they don’t tell us how
: Learn about all 21 of the InformationWeek 500 industries
much. That’s where IT leadership takes over,
: View interviews with CIOs of the top InformationWeek 500 companies
balancing new possibilities and higher
: Download our 2010 InformationWeek 500 Analytics Report expectations against what’s really going to
: Apply for next year’s InformationWeek 500 drive growth and improve the business.
That balancing act is a central theme to this

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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.

Make business processes more efficient


54%
Introduce new IT-led products/services for our customers
40%
Get better business intelligence to more employees, more quickly
36%
Lower IT costs/business costs
36%
Improve Web operations/customer experience
34%
Improve customer service
26%
Engage customers in new ways
24%
Create a new business model/revenue stream for the company
17%
Pursue new global opportunities
14%
Improve interaction with partners and suppliers
13%
Move organization toward an eco-friendly IT environment
5%
Note: Three responses allowed
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

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R1460910_IW500_chart
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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

Technology Initiatives That Improved Company Productivity


Which of the following are the most effective steps managers in your
organization have made in the past 12 months to raise company productivity?

Deployed new types of collaboration software (Microsoft’s SharePoint or other)


59%
Deployed business intelligence tools
53%
Deployed unified communications (single solution providing e-mail, VoIP, videoconferencing, IM, and presence)
30%
Increased support for telecommuting and remote workers
25%
Deployed videoconferencing
23%
Encouraged workers to use Web 2.0 technologies (e.g., social networking, online applications)
23%
Deployed desktop virtualization infrastructure
22%
Developed mobile applications
22%
Distributed smartphones
16%
Modeled business processes using CASE (computer-aided software engineering) or related tool
7%
Adopted online collaboration tools (e.g., Google applications)
6%
Note: Three responses allowed
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

R1460910_IW500_chart 7
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Budget Breathing Room


Without a doubt, the budget hatchet isn’t hanging over IT like it was in 2009.

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

New Web Technologies: 2010 vs. 2009


Which new Web technologies are being adopted by your company?
2010 2009

We’re using software as a service


75%
61%
We’re using wikis, blogs, or social networking tools for external collaboration
72%
42%
We’re using hosted collaborative applications (e.g., calendaring, spreadsheets, document management)
55%
62%
We’re using storage, compute, or other cloud computing services
50%
37%
We’re creating mashups that combine Web, enterprise content, and applications in new ways
48%
42%
Employees are encouraged to use consumer-oriented online applications they find useful
27%
25%
We’re using GPS-enabled or location-aware Web applications
25%
N/A
We’re using platform as a service (e.g., Microsoft Windows Azure, Google App Engine)
17%
N/A
Note: Multiple responses allowed
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

R1460910_IW500_chart 4
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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.

What’s Not A Priority


What’s dead in terms of priorities—or at least on life support?

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

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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.

Those Pesky Employees


The customer is always right. But lately, employees are getting mighty demanding as well.

The pressure is on IT teams to deliver collaboration, mobility, and information to employees


that’s as powerful as what they have in their off-duty lives. So if Facebook lets you know where
your 8th grade locker buddy now works (whether you care or not), you expect to be able to
search your colleagues’ profiles for someone with search engine marketing experience, and con-
nect with that person. That consumer-to-business dynamic helps explain why 59% of IW 500
companies have deployed new collaboration software in the past 12 months to improve pro-
ductivity. Real estate company CenterPoint, for instance, created an add-in to make Microsoft
Outlook the access point for all employee apps, from e-mail to ERP to CRM.

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.

Chris Murphy (cjmurphy@techweb.com) is editor of InformationWeek.

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THE VANGUARD GROUP

Vanguard’s Innovation Plan


How do you get to work on the most interesting tech projects at Vanguard, the
mutual fund giant? You volunteer.

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.

[ CIO Heller wants IT


with “wow” and relevance

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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.

CIO Heller doesn’t hold the iPhone


up as a mind-blowing innova-
tion—hundreds of thousands of
“Disruptive technologies
iPhone apps were out when often manifest themselves
Vanguard came out with its own. first in a small way—and then
But very few were in financial they explode.” —CEO Bill McNabb
services, and Vanguard cus-
tomers weren’t clamoring for them. Vanguard wants to have mobile development skills and
experience well ahead of customer demand, and well before an operating group can make a
business case for such apps.

“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

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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

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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”

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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.

—Chris Murphy (cjmurphy@techweb.com)

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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.

Conophy, IHG’s CIO, encourages IT staffers at the company to


experiment with new technologies because, he says, “I don’t
know where the next big innovation is.” IHG’s IT lab, with an
open floor plan and free soft drinks, resembles what you might
find in Silicon Valley. “As long as they don’t burn down a hotel or
electrocute a guest, those are the only two rules that really apply,”
Conophy jokes. “We don’t want to curtail their thinking.”

IHG, which owns seven hotel chains, including Crowne Plaza,


Holiday Inn, and InterContinental Hotels, opened 439 hotels Hotel guests
around the world last year, with plans for another 1,302 hotels “want powerful
and 197,431 rooms. Revenue per available room—a key industry computing in their
metric—is on the upswing again after declining during the global
hands, and for it
recession.
to be intuitive
Conophy talks about making hotel guests “the center of our uni- and rapid.”
verse,” and customer loyalty is vital to growth in the hospitality —CIO Tom Conophy
industry. To keep guests coming back, IHG is investing in business
intelligence. A Teradata database, 25 TB and growing, holds 200
million guest profiles, including detailed information on 43 million loyalty plan members. Every
time a customer books a room, checks into a hotel, watches a movie, or uses the minibar, the
database gets updated, and IHG uses that data to, among other things, run targeted marketing
campaigns, look at what rate plans have the highest uptake, analyze leisure and business trends,
and even slice and dice trends by, say, the company for which a subset of guests work. Other
dashboards track IHG’s performance on Expedia and other third-party travel sites.

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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

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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.”

That future is fast approaching. Testing of a mobile door-unlocking capability provided by


startup OpenWays came out of IHG’s lab and went into Holiday Inns in Houston and Chicago
in mid-August. With that technology, the hotel gives a guest a special number to punch in from
her cell phone, which then emits a special sound that unlocks the door when the phone is
placed against a receiver attached to the door lock. Says Conophy: “We want to endear our
brands to guests so they come back, and in doing so you’ve got to have technologies support-
ing their stay.”

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

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for hotel operators than a do-it-yourself approach, Schrils says.

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.

—J. Nicholas Hoover (nhoover@techweb.com)

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.

Many consumer goods companies measure commercial investment in terms of “uplift”—the


difference between what they actually sold and what they would have sold had they not run a
particular campaign. Colgate wanted deeper insight, with profit, loss, and ROI analysis down
to individual products, brands, and customers (meaning major retailers).

Colgate is known for iconic brands such as Colgate toothpaste, Irish Spring soap, Ajax cleanser,

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and Palmolive dishwashing liquid. Brand recognition cer-


tainly helps sell those goods, but products don’t fly off the
shelves without careful planning and execution in coopera-
tion with major drugstores, supermarket chains, and mass
merchants. Promotional plans and execution have to be
responsive to both the competition and ever-changing eco-
nomic conditions.

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

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COLGATE’S CBP TIMELINE


Proof of concept with standard SAP
promotion-planning capabilities. First Productivity improvements
production version, including basic ROI support broad editing and copying
and account-level P&L analysis, rolled of promotion plans; buying-
out in Canada and Mexico. pattern analyses introduced. Subsidiary rollouts continue.
▲ 2007 ▲ 2009 ▲
2006 ▼ 2008 ▼ 2010
Subsidiary rollouts begin with Performance and usability
more advanced ROI and enhanced with SAP
package-planning analysis. BusinessObjects dashboards and
SAP CRM 7.0 user interfaces.
Data:Colgate-Palmolive

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

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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.

—Doug Henschen (dhenschen@techweb.com)

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MERCK

Your Health? There’s An App For That


Pharmaceutical giant Merck is bringing patient care into the age of smart-
phones. The company has launched a series of mobile applications to help users
manage ailments ranging from cancer to diabetes to migraines. These free, unbranded applica-
tions—including iChemoDiary, iManage Migraine, and Vree, which is for people with Type II
diabetes—are designed to help patients and caregivers track symptoms, implement treatment
plans, and get access to important health information. The apps are available on a variety of
mobile platforms, including Android, Apple iPhone, BlackBerry, and Windows Mobile. The
company says it has had hundreds of thousands of downloads.

“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.

Merck also went right to the source—patients.

[ Scalet’s banking on the


ubiquity of smartphones
to empower patients

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“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

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other apps, iManage Migraine helps patients track symptoms so that they can provide more-
detailed information to their physicians.

Health And Wealth


While the three apps target different conditions, they have the same goal: to improve patient
outcomes. Treatments for these ailments can be complex and may have to be carried out over
long periods of time, so it’s essential that patients stay on top of their health. “One big chal-
lenge doctors have is keeping patients on therapy: taking medicine, doing exercise, monitoring
diets,” Scalet says. “We think this is a great opportunity to make that happen.”

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

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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

UNIVERSITY OF PITTSBURGH MEDICAL CENTER


Beyond Innovation
At University of Pittsburgh Medical Center, being an early adopter of technology
isn’t good enough. UPMC’s culture is about innovation and entrepreneurship—
developing and deploying technology-based products and services not only for inter-
nal use, but also for sale to other healthcare providers

[ Drawbaugh (left) and Shrestha are pushing


to commercialize more UPMC technology

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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.

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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.

The Big Consolidation


Five years ago, UPMC launched a multimillion-dollar, eight-year “IT transformation,” in partner-
ship with IBM, under which the medical center has virtualized and consolidated servers in its
three largest data centers and built a private cloud. UPMC’s virtualized environment of Wintel
and Unix servers, networking, and storage is where all production, testing, enterprise, and clini-
cal systems run, says Paul Sikora, VP of IT transformation.

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-

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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.

—Marianne Kolbasuk McGee (mmcgee@techweb.com)

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20 Southern Puts Worker Data In Its Place


Great Ideas To Steal
These InformationWeek 500 innovators are trying
unique approaches to solve business problems.Could
your company use a few extra bright ideas?

Southern Co. operates 76 power plants with more than 12,000


workers, many of them contractors, rotating among different plants
as needed. Until recently, it kept records on worker certifications,
training, drug tests, background checks, and other information at
each plant. When a worker switched plants, it was often easier to
redo tests and training rather than chase down information at a
another plant. But that approach was costly and annoyed workers.

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.

Emergency Room Waits


Worth Advertising
Healthcare services provider HCA’s East
Florida division is so sure patients won’t
have to spend a long time waiting to see a
doctor at its emergency rooms, it advertises
average wait times on digital billboards
around communities where its hospitals and
surgery centers are located.

The billboards evolved out of an effort to

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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%.

POS Data Drives Products To Shelves


Del Monte had two problems: It didn’t have a consistent demand
forecasting process across the company, and its sales team had a lot
of information about customers but wasn’t synthesizing it well.

First the company created a single demand planning process using i2


Technologies’ Demand Manager. This improved forecasting efficiency
and accuracy, and took five days out of the sales and operations
planning cycle.

Then it worked with One Network Enterprises to create a software-


as-a-service-based system that combines daily point-of-sale and fore-
cast data to directly drive replenishment processes and prevent its
products from going out of stock on store shelves.

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.

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Wet Seal’s Project iRunway


Teen clothing retailer Wet Seal’s iRunway iPhone app takes per-
sonalized marketing to a new level. It lets customers scan prod-
uct bar codes in Wet Seal stores and see all outfits that other cus-
tomers have put together with that item.

IRunway links to Wet Seal’s social media platform, where cus-


tomers post outfits created with the retailer’s clothing. Eighty-five
percent of all items in a store have customer-generated outfits
that are rated by their peers.

Wet Seal uses products customers scan to create personalized


notifications and product offers for them.

Data On Demand From P&G’s ‘Cockpit’


To enable its employees to
collaborate more effectively,
Procter & Gamble created
the Decision Cockpit, a digi-
tal platform that supports
faster, real-time decision-
making across all brands and
business units. Users design
their own portals, identifying
relevant business intelligence
that’s available in real time,
on demand.

In some businesses, 370


tracking reports have been reduced to 30. Overall there’s been a 50% to 70% reduction in reports
and touches, with 16 fewer data requests on average from each person using the cockpit. P&G
has seen a 30% to 50% cost savings in some markets, improved data sharing security, and a sav-
ings of more than 400 miles of paper in just one year.

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Data Visualization Speeds Up Eli Lilly Drug Trials


In developing new drugs, Eli Lilly devotes significant time to drug and disease modeling.
Before its Modeling and Simulation Explorer effort, referred to as MuSE, generating and pack-
aging simulation results was a manual process that took a significant amount of modeling
experts’ time.

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.

McCoy’s retail customers can go to


the network, plug in a ZIP code, and see a list of participating McCoy’s contractors in the ZIP
code specified. They can view the customized page of each contractor and contact them about
a project. What makes McCoy’s Contractor Network intriguing is that contractors must be
invited to join; it’s not a “pay to play” program. Also, customers seeking a contractor don’t fill
out a form and wait for responses. They contact contractors directly.

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Deere’s Big Machines


Get Health Service
John Deere’s construction and forestry division has introduced
Fleet Care, a service that relies on actual data from the machine
to drive when fleet maintenance gets done, rather than relying
only on scheduled intervals.

Fleet Care leverages an existing telematics platform called


JDLink that transmits data to and from a machine over wireless
cellular—soon to be satellite—data networks. Machine operat-
ing data is transmitted to John Deere daily, and higher-priority
error and problem indicators are sent on demand.

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.

Vans Creates Unique


Shoe-Buying Experience
VF, maker of Wrangler, North Face, Lee, and other
clothing brands, redesigned its Vans e-commerce
site to make it easier for customers to create cus-
tomized sneakers and then share the experience.

Vans had a customization app on its site, but it


was difficult to use and had a dated interface and
limited social capabilities. The site now offers live
chat, a scratch pad where customers can save shoe ideas while trying out new designs, and sup-
port for multiple-angle viewing.

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.

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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..

SAS R&D Gets Boost From Cloud


Cloud computing has let SAS streamline its R&D develop-
ment, testing, and delivery. The analytics software devel-
oper’s Remote Access Computing Environment, called the
RACE Cloud, provides on-demand computing for sales
and other mobile workers. It has an extensive image
library of server configurations. IT and R&D recognized
that SAS’s product testing groups could benefit from the
image library’s repeatable and reusable capabilities.

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.

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Data Mining Reroutes ER


‘Frequent Fliers’
Group Health Cooperative of South Central
Wisconsin, a non-profit managed care provider,
launched a data mining project last year to cut
costs for services provided outside of its own
clinics. Among 17 potential targets that the
group identified was what became known as
“emergency room frequent fliers”—just 98 of
the cooperative’s 62,000 members who visited
ERs more than six times a year, racking up charges of $2.2 million.

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.

Interface Helps GM Collaborate Across Factories


General Motors has developed a user interface for its factory systems that has transformed its
factories from highly manual, isolated places into more collaborative environments. The
Assembly Processing System bridges the gap between engineering and manufacturing users. Its
interactive software frees users from time previously spent on step-by-step communication and
laborious manual tasks, like compiling inconsistent spreadsheets.

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.

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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.

The company provides a range of services to help


25,000 resellers with e-commerce, including cross-media content for print, the Web, and e-
mail. Its search engine is embedded in hundreds of reseller Web sites.

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.

Royal Caribbean Links Digital Signs And Data


Royal Caribbean’s Oasis of the Seas is the world’s largest cruise ship, measuring almost 1,200
feet long, 213 feet tall, and 208 feet wide. That’s nearly 50% larger than the previous largest
cruise ship, with a maximum capacity of 6,300 guests and 2,200 crew. A ship this size requires
detailed planning to help passengers get around, and its guest mobility system is a ship-wide
digital signage network to do just that.

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.

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Verizon Wireless Makes Selling Simpler


In mid-2008, Verizon Wireless needed to make a drastic change to its retail sales system. The
existing one lacked the speed and flexibility Verizon’s more than 2,400 retail outlets needed. The
company decided to create a streamlined sales-order processing system, called SHOPP, aimed at
reducing the sales transaction time and improving efficiency.

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.

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SOA Expands Insurer’s Marketing Options


Progressive has developed an e-commerce system that lets a competing car insurer send cus-
tomers to Progressive for motorcycle, boat, and RV insurance, but keeps Progressive from try-
ing to sell those customers car insurance.

Using a service-oriented architec-


ture, Progressive integrated its
apps with those of other insurers.
It writes rules so the site recog-
nizes when customers are
referred from an auto rival site,
and suppresses information
about Progressive’s auto products.

The system also lets Progressive


carry other insurers’ products,
so it can sell partners’ home-
owners insurance, for example.

Users Show CenterPoint How To Manage Data


CenterPoint Properties, an industrial real estate developer, was wrestling with out-of-control
growth of unstructured data. Critical information was locked up in people’s in-boxes, hurting
overall productivity.

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.

Instead of fighting e-mail’s popularity, CenterPoint leveraged it by creating Cubby, an Outlook


add-in that exposes everything that a user works with, including objects in ERP, CRM, and cus-
tom systems, as a folder structure. Cubby filters the objects so users only see what they’re
working on. They drag whatever they want to save to the appropriate “in-box” folder, and
Cubby takes over.

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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.

FedEx Sensor Pairs GPS And Collaboration Capabilities


FedEx SenseAware combines a GPS sensor with a Web-based collaboration platform to let cus-
tomers shipping sensitive, high-value goods know not just where their packages are, but what
conditions they’ve endured.

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.

Customers can get alerts


when any of those condi-
tions change, and share data
on their shipments with sup-
ply chain partners. FedEx
has done limited release of
SenseAware to life science
customers, such as biotech-
nology, pharmaceuticals, and
healthcare companies.

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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

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RANK COMPANY REVENUE IN MILLIONS HIGHEST-RANKING IT EXECUTIVE INDUSTRY


1 The Vanguard Group Inc. $2,300 Paul Heller Banking & Financial Services
www.vanguard.com Malvern, Pa. Managing Dir. & CIO
2 InterContinental Hotels Group (IHG) $1,680 Tom Conophy Hospitality & Travel
www.ihg.com Atlanta, Ga. Exec.VP & CIO
3 Colgate-Palmolive Co. $15,327 Tom Greene Consumer Goods
www.colgate.com New York, N.Y. VP & CIO
4 Merck $27,428 J. Chris Scalet Biotechnology & Pharmaceuticals
www.merck.com Whitehouse Station, N.J. Exec.VP Global Services & CIO
5 University of Pittsburgh Medical Center (UPMC) $7,721 Daniel S. Drawbaugh Healthcare & Medical
www.upmc.com Pittsburgh, Pa. Sr.VP & CIO
6 Coca-Cola Enterprises Inc. $21,645 Esat Sezer Consumer Goods
www.cokecce.com Atlanta, Ga. Sr.VP & CIO
7 USAA $17,558 Greg Schwartz Insurance
www.usaa.com San Antonio,Texas Sr.VP of IT & CIO
8 Healthways Inc. $718 Scott Blanchette Healthcare & Medical
www.healthways.com Franklin,Tenn. Sr.VP & CIO
9 Verizon Wireless $62,100 Ajay Waghray Telecommunications
www.verizonwireless.com Basking Ridge, N.J. VP of IS & CIO
10 Monster Worldwide $905 Darko Dejanovic Consulting & Business Services
www.monster.com New York, NY Exec.VP & Global CIO & Head of Product
11 United Stationers Supply Co. $4,700 S. David Bent Distribution
www.unitedstationers.com Deerfield, Ill. Sr.VP of eBusiness Services & Corp. CIO
12 Associated Press — Lorraine Cichowski Media & Entertainment
www.ap.org New York, N.Y. Sr.VP & CIO
13 Cincinnati Children’s Hospital Medical Center $1,400 Marianne F. James Healthcare & Medical
www.cincinnatichildrens.org Cincinnati, Ohio Sr.VP & CIO
14 Knight Capital Group Inc. $1,162 Steven J. Sadoff Banking & Financial Services
www.knight.com Jersey City, N.J. Exec.VP & CIO
15 Old Dominion Freight Line Inc. $1,245 Ken Erdner Logistics & Transportation
www.odfl.com Thomasville, N.C. VP of IT
16 IntercontinentalExchange Inc. $995 Edwin Marcial Banking & Financial Services
www.theice.com Atlanta, Ga. Sr.VP & CTO
17 ProQuest LLC — Bipin Patel Consulting & Business Services
www.proquest.com Ann Arbor, Mich. CIO
18 Acxiom Corp. $1,277 David Guzmán Consulting & Business Services
www.acxiom.com Little Rock, Ark. Sr.VP & CIO
19 General Motors Co. — Terry Kline Automotive
www.gm.com Detroit, Mich. VP of IT & CIO
20 First Horizon National Corp. $2,010 Bruce Livesay Banking & Financial Services
www.firsthorizon.com Memphis,Tenn. Exec.VP & CIO
21 Harleysville Group Inc. $1,100 Jon Griggs Insurance
www.harleysvillegroup.com Harleysville, Pa. VP & CIO
22 Sparrow Health System $875 Thomas Bres Healthcare & Medical
www.sparrow.org Lansing, Mich. VP & CIO
23 Do it Best Corp. $2,460 Mike Altendorf Distribution
www.doitbestcorp.com Fort Wayne, Ind. VP of IT
24 Mansfield Oil Co. $5,100 Doug Haugh Energy & Utilities
www.mansfieldoil.com Gainsville, Ga. Exec.VP & CIO
25 Exelon Corp. $17,318 Daniel C. Hill Energy & Utilities
www.exeloncorp.com Chicago, Ill. Sr.VP & CIO
26 McCoy Corp. $525 Dennis Strong Retail: Specialty Merchandising
www.mccoys.com San Marcos,Texas Sr.VP & CIO
27 iQor Inc. $348 Vikas Kapoor Consulting & Business Services
www.iqor.com New York, N.Y. President & CEO
28 Eli Lilly & Co. $21,836 Michael C. Heim Biotechnology & Pharmaceuticals
www.lilly.com Indianapolis, Ind. Sr.VP & CIO
29 Equifax Inc. $1,825 David C.Webb Banking & Financial Services
www.equifax.com Atlanta, Ga. CIO
30 Dunham & Smith Agencies — Mike Skinner
www.dunhamandsmith.com St. Louis, Mo. CIO Consulting & Business Services
31 Ross Stores Inc. $7,200 Michael K. Kobayashi Retail: Specialty Merchandising
www.rossstores.com Pleasanton, Calif. Exec.VP Supply Chain, Allocation & CIO
32 Armada Supply Chain Solutions $1,250 Joseph Brado Logistics & Transportation
www.armada-scs.com Pittsburgh, Pa. VP & CIO
33 Concentra Inc. $754 Suzanne Kosub Healthcare & Medical
www.concentra.com Addison,Texas Sr.VP & CIO
34 Stewart Information Services Corp. $1,707 Murshid Khan Insurance
www.stewart.com Houston,Texas Sr.VP & CIO
35 Herbalife Ltd. $2,325 Mark Schissel Consumer Goods
www.herbalife.com Los Angeles, Calif. CIO
36 Waste Management Inc. $11,791 Puneet Bhasin Logistics & Transportation
www.wm.com Houston,Texas Sr.VP & CIO
37 Acuity, A Mutual Insurance Co. $745 Neal Ruffalo Insurance
www.acuity.com Sheboygan,Wis. VP & CIO
38 Hewlett-Packard Co. $114,552 Randy Mott Information Technology
www.hp.com Palo Alto, Calif. Exec.VP & CIO
39 Alberto-Culver Co. $1,434 Tony Bender Consumer Goods
www.alberto.com Melrose Park, Ill. VP & CIO
40 Procter & Gamble Co. $79,029 Filippo Passerini Consumer Goods
www.pg.com Cincinnati, Ohio President, Global Business Services & CIO
41 Royal Caribbean Cruises Ltd. $5,890 Bill Martin Hospitality & Travel
www.royalcaribbean.com Miami, Fla. VP & CIO

Financial data is from public sources and company supplied. Revenue is for latest fiscal year.
Dashes indicate companies requesting financial data not be disclosed.

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RANK COMPANY REVENUE IN MILLIONS HIGHEST-RANKING IT EXECUTIVE INDUSTRY


Avon Products Inc. $10,383 Donagh Herlihy Consumer Goods
42 www.avoncompany.com New York, N.Y. Sr.VP of IT & CIO
Pacific Northwest National Laboratory $1,100 Jerry Johnson Consulting & Business Services
43 www.pnl.gov Richland,Wash. CIO
Caritas Christi Health Care Todd Rothenhaus, MD Healthcare & Medical
44 www.caritaschristi.org Boston, Mass. — Sr.VP & CIO
Pegasus Solutions Inc. Mike Kistner Hospitality & Travel
45 www.pegs.com Dallas,Texas — CEO
Lockheed Martin Corp. $45,189 Sondra Barbour Manufacturing
46 www.lockheedmartin.com Bethesda, Md. VP of Enterprise Business Services & CIO
Del Monte Foods Co. $3,627 Marc L. Brown Consumer Goods
47 www.delmonte.com San Francisco, Calif. Sr.VP Corp. Svc. Center & CIO
Teva Pharmaceuticals U.S.A. Inc. $13,899 Jimmy Z.Wang Biotechnology & Pharmaceuticals
48 www.tevausa.com North Wales, Pa. VP & CIO
PNC Financial Services Group Inc. $16,228 Anuj Dhanda Banking & Financial Services
49 www.pnc.com Pittsburgh, Pa. Exec.VP & CIO
Aetna Inc. $34,764 Meg McCarthy Insurance
50 www.aetna.com Hartford, Conn. Sr.VP of Inno.,Tech.,& Serv.Operations & CIO
51 E.&J. Gallo Winery $2,000 Kent Kushar Consumer Goods
www.gallo.com Modesto, Calif. VP & CIO
52 Group Health Cooperative of South Central Wisconsin $254 Galen M. Metz Insurance
www.ghcscw.com Madison,Wis. CIO & Dir. of IS
53 Marriott International Inc. $10,908 Carl Wilson Hospitality & Travel
www.marriott.com Bethesda, Md. Exec.VP & CIO
54 University of Pennsylvania Health System $3,800 Michael Restuccia Healthcare & Medical
www.pennmedicine.org Philadelphia, Pa. VP & CIO
55 Asurion Insurance Services — Chris Corrado Insurance
www.asurion.com Nashville,Tenn. Sr.VP & CIO
56 SAS $2,310 Suzanne Gordon Information Technology
www.sas.com Cary, N.C. VP of IT & CIO
57 Dell Inc. $52,902 Robin Johnson Information Technology
www.dell.com Round Rock,Texas CIO
58 Baker Hughes Inc. $9,664 Clif Triplett Manufacturing
www.bakerhughes.com Houston,Texas VP & CIO
59 Sprint Nextel Corp. $32,260 Peter Campbell Telecommunications
www.sprint.com Overland Park, Kan. Sr.VP of IT
60 Shaw Industries Group Inc. $4,011 Roddy McKaig Manufacturing
www.shawfloors.com Dalton, Ga. VP & CIO
61 Apptis Inc. $295 Phil Horvitz Information Technology
www.apptis.com Chantilly,Va. CTO
62 Marcus & Millichap Real Estate Investment Services Inc. — Rick Peltz Consulting & Business Services
www.marcusmillichap.com Encino, Calif. Sr.VP & CIO
63 Heidelberg USA Inc. $3,226 Doug Robbins/Howard Hutchings Manufacturing
www.us.heidelberg.com Kennesaw, Ga. VP Info. Services, U.S./Global CIO
64 Penske Truck Leasing Co. LP $4,000 William L. Stobbart Logistics & Transportation
www.gopenske.com Reading, Pa. Sr.VP of IT
65 J.C. Penney Company Inc. $17,556 Tom Nealon Retail: General Merchandising
www.jcpenney.com Plano,Texas Exec.VP & CIO
66 Xerox Corp. $22,000 John McDermott Consulting & Business Services
www.xerox.com Norwalk, Conn. Corp.VP & CIO
67 Advanced Health Media LLC $436 Greg Miller Information Technology
www.ahmdirect.com Bridgewater, N.J. Exec.VP & CIO
68 Atmos Energy Corp. $4,969 Rich Gius Energy & Utilities
www.atmosenergy.com Dallas,Texas VP & CIO
69 Southern Co. $15,743 Becky Blalock Energy & Utilities
www.southerncompany.com Atlanta, Ga. Sr.VP & CIO
70 Keane Inc. — Tom Gary Consulting & Business Services
www.keane.com Boston, Mass. CIO
71 The Progressive Group of Insurance Cos. $14,600 Raymond Voelker Insurance
www.progressive.com Mayfield Village, Ohio CIO
72 Premier Inc. $675 Joseph M. Pleasant/Keith J. Figlioli Distribution
www.premierinc.com Charlotte, N.C. Sr.VP & CIO/Sr.VP, Healthcare Informatics
73 The Pasha Group — David Beckerman Logistics & Transportation
www.pashagroup.com Corte Madera, Calif. VP of IT Services
74 Lifespan Corp. $1,374 Carole Cotter Healthcare & Medical
www.lifespan.org Providence, R.I. Sr.VP & CIO
75 GXS Inc. $350 Karl Salnoske Information Technology
www.gxs.com Gaithersburg, Md. Exec.VP & CIO
76 Accenture $21,577 Frank B. Modruson Consulting & Business Services
www.accenture.com New York, N.Y. CIO
77 Automatic Data Processing Inc. $8,928 Michael L. Capone Consulting & Business Services
www.adp.com Roseland, N.J. Corporate VP & CIO
78 Odyssey HealthCare Inc. $686 James Zoccoli Healthcare & Medical
www.odsyhealth.com Dallas,Texas VP of IT
79 Tech Data Corp. $22,100 John Tonnison Distribution
www.techdata.com Clearwater, Fla. Exec.VP & CIO
80 Pacific Gas & Electric Co. $13,399 Patricia Lawicki Energy & Utilities
www.pge.com San Francisco, Calif. Sr.VP & CIO
81 WinWholesale Inc. $1,600 Steve Hangen Distribution
www.winwholesale.com Dayton, Ohio CIO
82 Baldor Electric Co. $1,524 Mark Shackelford Manufacturing
www.baldor.com Fort Smith, Ark. VP of IS
83 FedEx Corp. $34,700 Robert B. Carter Logistics & Transportation
www.fedex.com Memphis,Tenn. Exec.VP & CIO

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RANK COMPANY REVENUE IN MILLIONS HIGHEST-RANKING IT EXECUTIVE INDUSTRY


84 Wal-Mart Stores Inc. Rollin Ford Retail: General Merchandising
www.walmart.com Bentonville, Ark. $405,046 Exec.VP & CIO
85 Con-way Inc. Jacquelyn Barretta Logistics & Transportation
www.con-way.com San Mateo, Calif. $4,269 Sr.VP & CIO
86 CVR Energy Inc. Michael Brooks Energy & Utilities
www.cvrenergy.com Sugar Land,Texas $3,136 VP & CIO
87 Hewitt Associates Inc. David Baruch Consulting & Business Services
www.hewitt.com Lincolnshire, Ill. $3,000 CIO
88 Collabera Inc. Bala Variyam Information Technology
www.collabera.com Morristown, N.J. $300 CIO & Head, Collabera Labs
89 VF Corp. Martin Schneider Consumer Goods
www.vfc.com Greensboro, N.C. $7,200 VP & CIO
90 Banner Health Michael S.Warden Healthcare & Medical
www.bannerhealth.com Phoenix, Ariz. $4,677 Sr.VP of IT & CIO
91 Intuit Inc. Ginny Lee Information Technology
www.intuit.com Mountain View, Calif. $3,455 Sr.VP & CIO
92 R.R. Donnelley & Sons Co. Kenneth E. O’Brien Consulting & Business Services
www.rrdonnelley.com Chicago, Ill. $9,857 Exec.VP & CIO
93 American Airlines Inc. Monte Ford Logistics & Transportation
www.aa.com Fort Worth,Texas $19,898 Sr.VP of IT & CIO
94 Movado Group Inc. Frank A. Morelli Consumer Goods
www.movadogroup.com Paramus, N.J. $378 Sr.VP Global Business Processes & CIO
95 Salesforce.com Inc. Kirsten Wolberg Information Technology
www.salesforce.com San Francisco, Calif. $1,305 CIO
96 CME Group Inc. Kevin Kometer Banking & Financial Services
www.cmegroup.com Chicago, Ill. $2,613 Managing Director & CIO
97 Travelport Ltd. Sue Powers Hospitality & Travel
www.travelport.com Parsippany, N.J. — CEO IT Services & Software
98 Access Insurance Co. Andrew Dunn Insurance
www.accessgeneral.com Atlanta, Ga. — CIO
99 Fifth Third Bancorp. Joseph Robinson Banking & Financial Services
www.53.com Cincinnati, Ohio $9,450 Exec.VP & CIO
100 W.W. Grainger Inc. Timothy M. Ferrarell Distribution
www.grainger.com Lake Forest, Ill. $6,222 Sr.VP & CIO
101 JetBlue Airways Corp. $3,286 Joseph Eng Logistics & Transportation
www.jetblue.com Forest Hills, N.Y. Exec.VP & CIO
102 Wet Seal Inc. $561 Jon Kubo Retail: General Merchandising
www.wetsealinc.com Foothill Ranch, Calif. VP & CIO
103 AES Corp. $14,119 Elizabeth Hackenson Energy & Utilities
www.aes.com Arlington,Va. Sr.VP & CIO
104 Emerson $20,915 Kathy McElligott Manufacturing
www.emerson.com St. Louis, Mo. VP & CIO
105 Stein Mart Inc. $1,219 Andrew Black Retail: General Merchandising
www.steinmart.com Jacksonville, Fla. CIO & VP of IT
106 Emkay Inc. $400 Andrew Griffith Automotive
www.emkay.com Itasca, Ill. VP of IT
107 UST Global Inc. — Robert Dutile Information Technology
www.ust-global.com Aliso Viejo, Calif. CIO
108 Hogan Lovells U.S. LLP $865 William Gregory Consulting & Business Services
www.hoganlovells.com Wash., D.C. CIO
109 Day & Zimmermann Inc. $2,100 Anthony J. Bosco Jr. Consulting & Business Services
www.dayzim.com Philadelphia, Pa. Sr.VP & CIO
110 XO Communications $1,521 Robert Geller Telecommunications
www.xo.com Herndon,Va. CIO
111 The Allstate Corp. $32,013 Catherine S. Brune Insurance
www.allstate.com Northbrook, Ill. Sr.VP & CIO
112 Deere & Co. $23,112 Barry W. Schaffter Manufacturing
www.johndeere.com Moline, Ill. Sr.VP, Intelligent Systems Group & CIO
113 Broadview Networks Inc. — Kenneth A. Shulman Telecommunications
www.broadviewnet.com Rye Brook, N.Y. CTO & CIO
114 Nationwide Mutual Insurance Co. — Srinivas Koushik Insurance
www.nationwide.com Columbus, Ohio Sr.VP & CTO
115 Wells Fargo & Co. $88,686 Avid Modjtabai Banking & Financial Services
www.wellsfargo.com San Francisco, Calif. Exec.VP,Technology and Operations
116 Horizon Blue Cross Blue Shield of New Jersey $8,300 Mark Barnard Insurance
www.horizonblue.com Newark, N.J. Sr.VP of IT & CIO
117 Tyson Foods Inc. $26,704 Gary D. Cooper Consumer Goods
www.tyson.com Springdale, Ark. Sr.VP & CIO
118 Heartland Health $450 Helen V.Thompson Healthcare & Medical
www.heartland-health.com St. Joseph, Mo. CIO
119 Maritz $1,430 Gil Hoffman Consulting & Business Services
www.maritz.com Fenton, Mo. Sr.VP & CIO
120 Republic Services Inc. $8,199 William G. Halnon Energy & Utilities
www.republicservices.com Phoenix, Ariz. Sr.VP & CIO
121 The Harry Fox Agency Inc. — Louis Trebino Media & Entertainment
www.harryfox.com New York, N.Y. Sr.VP & CIO
122 J.B. Hunt Transport Services Inc. $3,203 Kay J. Palmer Logistics & Transportation
www.jbhunt.com Lowell, Ark. Exec.VP & CIO
123 BNY Mellon $7,687 John Fiore Banking & Financial Services
www.bnymellon.com New York, N.Y. Exec.VP & CIO
124 Crawford & Co. $970 Brian S. Flynn Insurance
www.crawfordandcompany.com Atlanta, Ga. Sr.VP & Global CIO
125 Capital One Financial Corp. $15,951 Rob Alexander Banking & Financial Services
www.capitalone.com McLean,Va. CIO

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RANK COMPANY REVENUE IN MILLIONS HIGHEST-RANKING IT EXECUTIVE INDUSTRY


126 Raytheon Co. Rebecca R. Rhoads Manufacturing
www.raytheon.com Waltham, Mass. $24,881 VP & CIO
127 Sabre Holdings Corp. Barry Vandevier Hospitality & Travel
www.sabre-holdings.com Southlake,Texas — CIO
128 Hyatt Hotels Corp. Mike Blake Hospitality & Travel
www.hyatt.com Chicago, Ill. $3,332 CIO
129 T-Mobile USA Inc. Cole Brodman Telecommunications
www.t-mobile.com Bellevue,Wash. $21,531 Chief Technology & Innovation Officer
130 Genuine Parts Co. Charles A. Chesnutt Distribution
www.genpt.com Atlanta, Ga. $10,058 Sr.VP of IT & Process Improvement
131 Digital River Inc. Ted Hoy Information Technology
www.digitalriver.com Minneapolis, Minn $404 Sr.VP of Product & Technology
132 Scottrade Inc. Ian Patterson Banking & Financial Services
www.scottrade.com St. Louis, Mo. $822 CIO
133 McGraw-Hill Cos. Inc. Bruce Marcus Media & Entertainment
www.mcgraw-hill.com New York, N.Y. $5,952 Exec.VP & CIO
134 Rabobank N.A. Erwin Martinez Banking & Financial Services
www.rabobankamerica.com El Centro, Calif. $378 CIO
135 State Street Corp. Christopher Perretta Banking & Financial Services
www.statestreet.com Boston, Mass. $8,640 Exec.VP & CIO
136 CenterPoint Properties Scott Zimmerman Consulting & Business Services
www.centerpoint-prop.com Oak Brook, Ill. — CIO
137 Tessco Technologies Inc. Doug Rein Distribution
www.tessco.com Hunt Valley, Md. $522 Sr.VP, Performance Systems & Operations
138 Premiere Global Services Inc. David M. Guthrie Consulting & Business Services
www.pgi.com Atlanta, Ga. $602 CTO
139 HD Supply Inc. Michele Markham Distribution
www.hdsupply.com Atlanta, Ga. $7,418 Sr.VP & CIO
140 VMware Inc. Mark Egan Information Technology
www.vmware.com Palo Alto, Calif. $2,024 CIO
141 International Business Machines Corp. Patrick Toole Information Technology
www.ibm.com Armonk, N.Y. $95,758 VP & CIO
142 Product Partners LLC Steven Winshel Consumer Goods
www.beachbody.com Santa Monica, Calif. $320 CIO
143 Parkland Health & Hospital System Jack Kowitt Healthcare & Medical
www.parklandhospital.com Dallas,Texas $1,080 Sr.VP & CIO
144 CoxHealth Bruce Robison Healthcare & Medical
www.coxhealth.com Springfield, Mo. $2,200 VP & CIO
145 AG Interactive Joseph Yanoska Media & Entertainment
www.aginteractive.com Cleveland, Ohio $1,636 VP of Technology
146 Dr Pepper Snapple Group Inc. Virginia Guthrie Consumer Goods
www.drpeppersnapplegroup.com Plano,Texas $5,531 Sr.VP & CIO
147 Amgen Inc. Thomas J. Flanagan Biotechnology & Pharmaceuticals
www.amgen.com Thousand Oaks, Calif. $14,642 Sr.VP & CIO
148 AXA Equitable Life Insurance Co. Kevin E. Murray Insurance
www.axa-equitable.com New York, N.Y. $3,242 Exec.VP & CIO
149 Western Corporate Federal Credit Union (WesCorp) Gene Berger Banking & Financial Services
www.wescorp.org San Dimas, Calif. — VP of IT
150 Atlantic Health Linda Reed Healthcare & Medical
www.atlantichealth.org Morristown, N.J. $1,092 VP of IS & CIO
151 Convergys Corp. Jim Goetz Consulting & Business Services
www.convergys.com Cincinnati, Ohio $2,827 CIO
152 Sutherland Global Services Inc. Deepak Batheja Consulting & Business Services
www.sutherlandglobal.com Pittsford, N.Y. — CTO
153 Walgreen Co. Tim Theriault Retail: General Merchandising
www.walgreens.com Deerfield, Ill. $63,335 CIO
154 Procurestaff Technologies Robert Brooks Consulting & Business Services
www.procurestaff.com New York, N.Y. — VP of Technology
155 Foley & Lardner LLP Doug Caddell Consulting & Business Services
www.foley.com Milwaukee,Wis. — CIO
156 Verizon Communications Inc. Shaygan Kheradpir Telecommunications
www.verizon.com New York, N.Y. $107,808 Exec.VP & CIO
157 Norton Healthcare Inc. Joseph DeVenuto Healthcare & Medical
www.nortonhealthcare.com Louisville, Ky. $1,300 VP of IS & CIO
158 Best Western International Inc. Scott A. Gibson Hospitality & Travel
www.bestwestern.com Phoenix, Ariz. — Sr.VP Distribution and Strategic Services & CIO
159 Pfizer Inc. Jeffrey Keisling Biotechnology & Pharmaceuticals
www.pfizer.com New York, N.Y. $50,009 Sr.VP & CIO
160 Pharmaceutical Product Development Inc. Mike Wilkinson Biotechnology & Pharmaceuticals
www.ppdi.com Wilmington, N.C. $1,417 Exec.VP & CIO
161 ADC Telecommunications Inc. Chris Jurasek Telecommunications
www.adc.com Eden Prairie, Minn. $1,150 Pres., ADC Professional Services,VP & CIO
162 Webcor Builders LP Gregg Davis Construction & Engineering
www.webcor.com San Mateo, Calif. $1,100 Sr.VP & CIO
163 Pioneer Investment Management Peter Noll Banking & Financial Services
www.pioneerinvestments.com Boston, Mass. $975 Global CTO
164 AutoTrader.com Inc. Bob Hadley Retail: Specialty Merchandising
www.autotrader.com Atlanta, Ga. — CIO
165 Fair Isaac Corp. Christopher Rence Banking & Financial Services
www.fico.com Minneapolis, Minn. $631 VP, Chief Information and Bus.Trans. Officer
166 VWR International LLC Charles R. Patel Distribution
www.vwr.com West Chester, Pa. — Sr.VP & CIO
167 DST Output Frank Delfer Manufacturing
www.dstoutput.com Kansas City, Mo. $482 Exec.VP of Technology & CTO

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RANK COMPANY REVENUE IN MILLIONS HIGHEST-RANKING IT EXECUTIVE INDUSTRY


168 Vision-Ease Lens Flo Kinzel Consumer Goods
www.vision-ease.com Ramsey, Minn. — CIO
169 CDW LLC Jon Stevens Retail: Specialty Merchandising
www.cdw.com Vernon Hills, Ill. $7,163 Sr.VP & CIO and Operations
170 Marsh Inc. Jim P. Lee Insurance
www.mmc.com New York, N.Y. $4,600 CIO
171 Activant Solutions Inc. John Breeden/Stuart Maxel Information Technology
www.activant.com Livermore, Calif. $379 VP of IT/Continuous Improvement Mgr.
172 Wuesthoff Health System Inc. David L. Barnhart Healthcare & Medical
www.wuesthoff.org Rockledge, Fla. — CIO
173 Intel Corp. Diane Bryant Electronics
www.intel.com Santa Clara, Calif. $35,127 VP & CIO
174 Nalco Co. Stewart McCutcheon Chemicals
www.nalco.com Naperville, Ill. $3,747 CIO
175 Freeman Decorating Services Inc. Richard Maranville Consulting & Business Services
www.freemanco.com Dallas,Texas — CIO
176 Diversey Holdings Inc. Brent Hoag Manufacturing
www.diversey.com Sturtevant,Wis. — VP & CIO
177 AstraZeneca plc Richard Williams Biotechnology & Pharmaceuticals
www.astrazeneca.com Wilmington, Del. $32,804 Global CIO
178 Lowe’s Companies Inc. Steven M. Stone Retail: Specialty Merchandising
www.lowes.com Mooresville, N.C. $47,200 Sr.VP & CIO
179 AT&T Inc. Thaddeus Arroyo Telecommunications
www.att.com Dallas,Texas $123,000 CIO
180 Heartland Payment Systems Inc. Kris Herrin Banking & Financial Services
www.heartlandpaymentsystems.com Princeton, N.J. $1,652 CTO
181 Prudential Financial Inc. Barbara Koster Banking & Financial Services
www.prudential.com Newark, N.J. $32,688 CIO
182 UPS Inc. David Barnes Logistics & Transportation
www.ups.com Atlanta, Ga. $45,300 Sr.VP & CIO
183 Alliance One International Inc. William D. Pappas Manufacturing
www.aointl.com Morrisville, N.C. $2,308 Sr.VP & CIO
184 Children’s Hospital & Medical Center George Reynolds,MD Healthcare & Medical
www.childrensomaha.org Omaha, Neb. $265 Chief Med. Informatics Officer; Acting VP & CIO
185 The Hartford Financial Services Group Inc. Brian O’Connell Insurance
www.thehartford.com Hartford, Conn. $24,701 Sr.VP & CIO
186 A.T. Kearney Inc. John Laughhunn Consulting & Business Services
www.atkearney.com Chicago, Ill. — CTO
187 Children’s Medical Center Dallas Pamela Arora Healthcare & Medical
www.childrens.com Dallas,Texas $884 VP & CIO
188 ABF Freight System Inc. Dave Cogswell Logistics & Transportation
www.abf.com Fort Smith, Ark. $1,470 President, Data-Tronics
189 Quintiles Bill Deam Biotechnology & Pharmaceuticals
www.quintiles.com Durham, N.C. — Exec.VP & CIO, Global IT
190 Wheels Inc. Steven Loos Consulting & Business Services
www.wheels.com Des Plaines, Ill. $2,000 VP of IT & CIO
191 CSG Systems International Inc. Lonnie Mahrt Information Technology
www.csgsystems.com Englewood, Colo. $501 Sr.VP of Operations & CIO
192 Taco Bell Corp. Douglas Wines Hospitality & Travel
www.tacobell.com Irvine, Calif. $10,836 Director, IT Services
193 Split Cooperative LLC Greg Smith Consulting & Business Services
www.splitcoop.com New York, N.Y. — Exec.VP & CIO
194 Transitions Optical Inc. Maria Zabetakis Consumer Goods
www.transitions.com Pinellas Park, Fla. — Americas IT Director
195 Jones Apparel Group Inc. Norm Veit Consumer Goods
www.jonesapparel.com Bristol, Pa. $3,327 Exec.VP of MIS
196 Paccar Inc Kyle Quinn Automotive
www.paccar.com Bellevue,Wash. $8,087 VP & CIO
197 Valassis Communications Inc. Steve Carrington Consulting & Business Services
www.valassis.com Livonia, Mich. $2,244 VP & CIO
198 Indiana Farm Bureau Insurance Greg Clancy Insurance
www.infarmbureau.com Indianapolis, Ind. $700 Sr.VP & CIO
199 Chiquita Brands International Inc. — Consumer Goods
www.chiquitabrands.com Cincinnati, Ohio $3,470
200 Highmark Inc. Tom Tabor Insurance
www.highmark.com Pittsburgh, Pa. $13,700 Sr.VP & CIO
201 Austin Energy Karl Popham Energy & Utilities
www.austinenergy.com Austin,Texas $1,060 CIO (Interim)
202 Synopsys Inc. Debra Martucci Information Technology
www.synopsys.com Mountain View, Calif. $1,360 CIO & VP of IT
203 Avnet Inc. Steve Phillips Distribution
www.avnet.com Phoenix, Ariz. $16,230 Sr.VP & CIO
204 Northern Trust Corp. Peter Magrini/Jim Scholefield . Banking & Financial Services
www.northerntrust.com Chicago, Ill. $3,787 Exec.VP, Tech Apps./Sr.VP, Tech.Infra.& Ops.
205 National Oilwell Varco Distribution Services Noel Connolly Manufacturing
www.nov.com Houston,Texas $1,350 Sr.VP of Supply Chain Management
206 Southern California Edison Mahvash Yazdi Energy & Utilities
www.sce.com Rosemead, Calif. $12,400 Sr.VP Business Integration & CIO
207 Flextronics International Ltd. David Smoley Electronics
www.flextronics.com San Jose, Calif. $24,111 Sr.VP & CIO
208 CUNA Mutual Group Rick Roy Banking & Financial Services
www.cunamutual.com Madison,Wis. $2,764 Sr.VP & CIO
209 Blackbaud Inc. Todd Lant Information Technology
www.blackbaud.com Charleston, S.C. $309 VP of IT

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RANK COMPANY REVENUE IN MILLIONS HIGHEST-RANKING IT EXECUTIVE INDUSTRY


210 InnerWorkings Inc. Neil P. Graver Consulting & Business Services
www.inwk.com Chicago, Ill. $400 Sr.VP of Technology
211 The Charmer Sunbelt Group Paul Fipps Distribution
www.charmer-sunbelt.com New York, N.Y. $4,800 Corp.VP of Business Services & CIO
212 Siemens Healthcare John Glaser Healthcare & Medical
www.medical.siemens.com/us Malvern, Pa. $16,085 CEO
213 HCA Inc. Noel Brown Williams Healthcare & Medical
www.hcahealthcare.com Nashville,Tenn. — Sr.VP & CIO
214 Principal Financial Group Inc. Gary Scholten Banking & Financial Services
www.principal.com Des Moines, Iowa $8,849 Sr.VP & CIO
215 Progressive Medical Inc. Angelo Mazzocco Healthcare & Medical
www.progressive-medical.com Westerville, Ohio $280 CIO
216 SunGard Availability Services LP Donald H. Hopkins Information Technology
www.sungardas.com Wayne, Pa. $1,520 VP & CIO
217 Hologic Inc. David Rudzinsky Healthcare & Medical
www.hologic.com Bedford, Mass. $1,637 Sr.VP of IS & CIO
218 Nygard International Partnership Len Nicolas Consumer Goods
www.nygard.com New York, N.Y. $500 COO
219 Veyance Technologies Inc. Nathaniel Leonard Manufacturing
www.veyance.com Fairlawn, Ohio $1,600 VP & GM of IT, Logistics, Procurement & Seawing
220 The New York Times Co. Joseph Seibert Media & Entertainment
www.nytco.com New York, N.Y. $2,440 Sr.VP & CIO
221 CRST International Inc. Steve Hannah Logistics & Transportation
www.crst.com Cedar Rapids, Iowa — VP & CIO
222 Newell Rubbermaid Inc. Gordon Steele Consumer Goods
www.newellrubbermaid.com Atlanta, Ga. $5,578 Sr.VP Program Management Office & CIO
223 FFE Transportation Inc. Nick Cook Logistics & Transportation
www.ffeinc.com Dallas,Texas $373 VP & CIO
224 Poudre Valley Health System Russell Branzell Healthcare & Medical
www.pvhs.org Fort Collins, Colo. $1,000 VP & CIO
225 Rackspace Hosting Inc. Steve Mills Consulting & Business Services
www.rackspace.com San Antonio,Texas $629 CIO
226 Doshi Diagnostic Imaging Services Tariq Rahim Shaikh/Anish Berry Healthcare & Medical
www.doshidiagnostic.com Hicksville, N.Y. — COO & CIO/President
227 Transatlantic Holdings Inc. George Di Martino Insurance
www.transre.com New York, N.Y. $4,446 Sr.VP & CIO
228 Global Crossing Ltd. Anthony D. Christie Telecommunications
www.globalcrossing.com Florham Park, N.J. $2,536 CTO & CIO
229 Financial Industry Regulatory Authority Inc. Marty Colburn Consulting & Business Services
www.finra.org Wash., D.C. — Exec.VP & CTO
230 Fiserv Inc. Maryann Goebel Banking & Financial Services
www.fiserv.com Brookfield,Wis. $4,077 Exec.VP & CIO
231 Schneider National Inc. Judith Lemke Logistics & Transportation
www.schneider.com Green Bay,Wis. — Exec.VP & CIO
232 K&L Gates LLP Steven W. Agnoli Consulting & Business Services
www.klgates.com Pittsburgh, Pa. $1,000 CIO
233 Martin Marietta Materials Inc. Chuck Musciano Metals & Natural Resources
www.martinmarietta.com Raleigh, N.C. $1,703 VP & CIO
234 Microsoft Corp. Tony Scott Information Technology
www.microsoft.com Redmond,Wash. $58,437 Corp.VP & CIO
235 Littelfuse Inc. Ed Earl Electronics
www.littelfuse.com Chicago, Ill. $430 CIO
236 Orbital Sciences Corp. Ken Bell Manufacturing
www.orbital.com Dulles,Va. $1,100 Sr.VP & CIO
237 ZSL Inc. Shivakumar Kandaswamy Consulting & Business Services
www.zslinc.com Edison, N.J. — Exec.VP of IT and R&D
238 OhioHealth Michael Krouse Healthcare & Medical
www.ohiohealth.com Columbus, Ohio — System VP & CIO
239 Grange Mutual Casualty Co. Michael C. Fergang Insurance
www.grangeinsurance.com Columbus, Ohio $1,300 VP & CIO
240 Emcor Group Inc. Joseph A. Puglisi Construction & Engineering
www.emcorgroup.com Norwalk, Conn. $5,548 VP & CIO
241 Freescale Semiconductor Inc. Sam Coursen Electronics
www.freescale.com Austin,Texas $3,508 VP & CIO
242 PLS Logistics Services Mark Ohlund Logistics & Transportation
www.plslogistics.com Cranberry , Pa. — VP of Technology Strategy
243 Geisinger Health System Frank Richards Healthcare & Medical
www.geisinger.org Danville, Pa. $2,300 CIO
244 Steris Corp. Mario Shahidian Healthcare & Medical
www.steris.com Mentor, Ohio $1,299 VP & CIO
245 Boeing Co. John Hinshaw Manufacturing
www.boeing.com Chicago, Ill. $68,281 VP of IT & CIO
246 EMC Corp. Sanjay Mirchandani Information Technology
www.emc.com Hopkinton, Mass. $14,026 Sr.VP & CIO
247 BMC Software Inc. Mark Settle Information Technology
www.bmc.com Houston,Texas $1,872 CIO
248 Medtronic Inc. Michael Hedges Healthcare & Medical
www.medtronic.com Minneapolis, Minn. $14,599 CIO
249 Blackboard Inc. John Lambeth Information Technology
www.blackboard.com Wash., D.C. $439 VP,Technology Solutions Group
250 OneAmerica Financial Partners Inc. Gene Berry Banking & Financial Services
www.oneamerica.com Indianapolis, Ind. $1,217 VP of IT & CIO

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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

Dashes indicate companies where highest-ranking IT executive not known.

Region Key Northeast South Midwest West

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A n a l y t i c s R e p o r t

Region
Region

COMPANY HIGHEST-RANKING IT EXECUTIVE COMPANY HIGHEST-RANKING IT EXECUTIVE


Baylor Health Care System David S.Muntz CME Group Inc. Kevin Kometer
www.baylorhealth.com Dallas,Texas Sr.VP & CIO www.cmegroup.com Chicago, Ill. Managing Director & CIO
BCD Travel Hilton Sturisky Coca-Cola Enterprises Inc. Esat Sezer
www.bcdtravel.com Atlanta, Ga. Sr.VP of Information & Comm.Tech. www.cokecce.com Atlanta, Ga. Sr.VP & CIO
BDO USA LLP Richard Rottman Cognizant Technology Solutions Corp. Mark Greenlaw
www.bdo.com Chicago, Ill. CTO www.cognizant.com Teaneck, N.J. Chief Sustainability Officer
Best Western International Inc. Scott A.Gibson Colgate-Palmolive Co. Tom Greene
www.bestwestern.com Phoenix, Ariz. Sr.VP of Distribution and Strat.Svcs.& CIO www.colgate.com New York, N.Y. VP & CIO
Beth Israel Deaconess Medical Center John D.Halamka,MD Collabera Inc. Bala Variyam
www.bidmc.org Boston, Mass. CIO www.collabera.com Morristown, N.J. CIO & Head, Collabera Labs
Black Box Corp. Kim Clougherty Commercial Vehicle Group Inc. Randy Lhowe
www.blackbox.com Lawrence, Pa. VP & CIO www.cvgrp.com New Albany, Ohio Corp. Dir. of IT
Blackbaud Inc. Todd Lant Component Assembly Systems Inc. John Lord
www.blackbaud.com Charleston, S.C. VP of IT www.componentassembly.com Pelham, N.Y. CTO
Blackboard Inc. John Lambeth CompuCom Systems Inc. John Douglas
www.blackboard.com Wash., D.C. VP of Technology Solutions Group www.compucom.com Dallas,Texas CIO
Blount International Inc. Barry J.Brunetto Concentra Inc. Suzanne Kosub
www.blount.com Portland, Ore. VP of IS www.concentra.com Addison,Texas Sr.VP & CIO
BMC Software Inc. Mark Settle Continuum Health Partners Inc. Mark Moroses
www.bmc.com Houston,Texas CIO www.wehealny.com New York, N.Y. Interim CIO
BNY Mellon John Fiore ConvaTec Inc. William Compton
www.bnymellon.com New York, N.Y. Exec.VP & CIO www.convatec.com Skillman, N.J. VP & CIO
Boeing Co. John Hinshaw Convergys Corp. Jim Goetz
www.boeing.com Chicago, Ill. VP of IT & CIO www.convergys.com Cincinnati, Ohio CIO
Booz Allen Hamilton Inc. Frank S.Smith,III Con-way Inc. Jacquelyn Barretta
www.boozallen.com McLean,Va. Sr.VP & CIO www.con-way.com San Mateo, Calif. Sr.VP & CIO
Boston Medical Center Meg Aranow Corning Inc. Kevin J.McManus
www.bmc.org Boston, Mass. VP & CIO www.corning.com Corning, N.Y. VP & CIO
BP Plc Dana Deasy Cox Enterprises Inc. Gregory Morrison
www.bp.com Houston,Texas Group CIO www.coxenterprises.com Atlanta, Ga. VP & CIO
Brady Corp. Bentley Curran CoxHealth Bruce Robison
www.bradycorp.com Milwaukee,Wis. VP of IT & CIO www.coxhealth.com Springfield, Mo. VP & CIO
Broadview Networks Inc. Kenneth A.Shulman Coyote Logistics Michal Yariv
www.broadviewnet.com Rye Brook, N.Y. CTO & CIO www.coyotelogistics.com Lake Forest, Ill. CIO
Brocade Communications Systems Inc. Tim Graumann Crawford & Co. Brian S.Flynn
www.brocade.com San Jose, Calif. CIO & VP of IT www.crawfordandcompany.com Atlanta, Ga. Sr.VP & Global CIO
CA Technologies Stephen C.Savage Crossmark Inc. Jim Norred
www.ca.com Islandia, N.Y. CIO www.crossmark.com Plano,Texas CIO
Cadence Design Systems Inc. Daniel Salisbury CRST International Inc. Steve Hannah
www.cadence.com San Jose, Calif. Corp.VP, Information Technology www.crst.com Cedar Rapids, Iowa VP & CIO
Capgemini S.A. Josh McArthur CSG Systems International Inc. Lonnie Mahrt
www.us.capgemini.com New York, N.Y. CIO, North America www.csgsystems.com Englewood, Colo. Sr.VP of Operations & CIO
Capital BlueCross Kent Whiting CUNA Mutual Group Rick Roy
www.capbluecross.com Harrisburg, Pa. VP of IT www.cunamutual.com Madison,Wis. Sr.VP & CIO
Capital One Financial Corp. Rob Alexander Cushman & Wakefield Inc. Craig Cuyar
www.capitalone.com McLean,Va. CIO www.cushmanwakefield.com New York, N.Y. Global CIO
Career Education Corp. Manoj Kulkarni CVR Energy Inc. Michael Brooks
www.careered.com Hoffman Estates, Ill. Sr.VP & CIO www.cvrenergy.com Sugar Land,Texas VP & CIO
Caritas Christi Health Care Todd Rothenhaus,MD Cycle30 Inc. Jim Dunlap
www.caritaschristi.org Boston, Mass. Sr.VP & CIO www.cycle30.com Seattle,Wash. President
Carolinas HealthCare System Craig Richardville Darden Patti Reilly White
www.carolinashealthcare.org Charlotte, N.C. Sr.VP & CIO www.darden.com Orlando, Fla. Sr.VP of Information Svcs. & Tech. & CIO
CB Richard Ellis Group Inc. Don Goldstein Day & Zimmermann Inc. Anthony J.Bosco Jr.
www.cbre.com Los Angeles, Calif. Global CIO www.dayzim.com Philadelphia, Pa. Sr.VP & CIO
CDI Corp. Vince Squillacioti Deere & Co. Barry W.Schaffter
www.cdicorp.com Philadelphia, Pa. Sr.VP & CIO www.johndeere.com Moline, Ill. Sr.VP, Intelligent Systems Group & CIO
CDW LLC Jon Stevens Del Monte Foods Co. Marc L.Brown
www.cdw.com Vernon Hills, Ill. Sr.VP & CIO and Operations www.delmonte.com San Francisco, Calif. Sr.VP Corp. Svc. Center & CIO
Celestica Inc. Mary Gendron Dell Inc. Robin Johnson
www.celestica.com Manchester, N.H. Sr.VP & CIO www.dell.com Round Rock,Texas CIO
Centene Corp. Don Imholz Delphi Automotive LLP Timothy McCabe
www.centene.com St. Louis, Mo. Exec.VP & CIO www.delphi.com Troy, Mich. VP & CIO
CenterPoint Properties Scott Zimmerman Delta Air Lines Inc. Theresa Wise
www.centerpoint-prop.com Oak Brook, Ill. CIO www.delta.com Atlanta, Ga. Sr.VP & CIO
CentraState Healthcare System Indranil Ganguly Detroit Medical Center Michael LeRoy
www.centrastate.com Freehold, N.J. VP & CIO www.dmc.org Detroit, Mich. Sr.VP & CIO
CenturyLink Inc. Bill Bradley DeVry Inc. Eric Dirst
www.centurylink.com Monroe, La. Sr.VP & CIO www.devryinc.com Downers Grove, Ill. Sr.VP & CIO
CGI Group Inc. Luc Pinard/Guy Brosseau Digital River Inc. Ted Hoy
www.cgi.com Fairfax,Va. Exec.VP & Chief Tech.& Qual.Officer/VP & CIO www.digitalriver.com Minneapolis, Minn Sr.VP of Product & Technology
CH2M Hill Bill Dehn Discover Financial Services Glenn Schneider
www.ch2m.com Englewood, Colo. CIO www.discoverfinancial.com Riverwoods, Ill. Sr.VP & CIO
Charles Schwab & Co.Inc. Brad Peterson Discovery Communications Inc. David Kline
www.schwab.com San Francisco, Calif. CIO www.discoverycommunications.com Silver Spring, Md. Exec.VP & CIO
The Charmer Sunbelt Group Paul Fipps Diversey Holdings Inc. Brent Hoag
www.charmer-sunbelt.com New York, N.Y. Corp.VP of Business Services & CIO www.diversey.com Sturtevant,Wis. VP & CIO
Children’s Hospital & Medical Center George Reynolds,MD Do it Best Corp. Mike Altendorf
www.childrensomaha.org Omaha, Neb. Chief Med.Informatics Officer;Acting VP & CIO www.doitbestcorp.com Fort Wayne, Ind. VP of IT
Children’s Hospital of Philadelphia Bryan A.Wolf,MD Doshi Diagnostic Imaging Services Tariq Rahim Shaikh/Anish Berry
www.chop.edu Philadelphia, Pa. Sr.VP & CIO www.doshidiagnostic.com Hicksville, N.Y. COO & CIO/President
Children’s Medical Center Dallas Pamela Arora Dr Pepper Snapple Group Inc. Virginia Guthrie
www.childrens.com Dallas,Texas VP & CIO www.drpeppersnapplegroup.com Plano,Texas Sr.VP & CIO
Chiquita Brands International Inc. — DST Output Frank Delfer
www.chiquitabrands.com Cincinnati, Ohio www.dstoutput.com Kansas City, Mo. Exec.VP of Technology & CTO
Christus Health George Conklin DTE Energy Co. Lynne Ellyn
www.christushealth.org Irving,Texas Sr.VP & CIO www.dteenergy.com Detroit, Mich. Sr.VP & CIO
CHS Inc. Beth Nordin Dunham & Smith Agencies Mike Skinner
www.chsinc.com Inver Grove Heights, Minn. VP of IT www.dunhamandsmith.com St. Louis, Mo. CIO
The Chubb Corp. James P.Knight Dunkin’Brands Inc. Daniel J.Sheehan
www.chubb.com Warren, N.J. Exec.VP & Global CIO www.dunkinbrands.com Canton, Mass. Sr.VP & CIO
Cigna Corp. James Nastri Dynegy Inc. Biren Kumar
www.cigna.com Philadelphia, Pa. VP of eBusiness www.dynegy.com Houston,Texas Sr.VP & CIO
Cincinnati Children’s Hospital Medical Center Marianne F.James E.&J.Gallo Winery Kent Kushar
www.cincinnatichildrens.org Cincinnati, Ohio Sr.VP & CIO www.gallo.com Modesto, Calif. VP & CIO
Cincinnati Financial Corp. John Kellington Eaton Corp. William W.Blausey Jr.
www.cinfin.com Fairfield, Ohio Sr.VP & CIO www.eaton.com Cleveland, Ohio Sr.VP & CIO
Citi Private Bank Indy Reddy Eli Lilly & Co. Michael C.Heim
www.citiprivatebank.com New York, N.Y. Managing Dir. & CTO www.lilly.com Indianapolis, Ind. Sr.VP & CIO
Clayton Homes Inc. Ralph Warchol EMC Corp. Sanjay Mirchandani
www.claytonhomes.com Maryville,Tenn. VP & CIO www.emc.com Hopkinton, Mass. Sr.VP & CIO
Region Key Northeast South Midwest West
52 September 2010 © 2010 InformationWeek, Reproduction Prohibited
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Analytics.InformationWeek.com

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

KNOW YOUR NEIGHBORS


California tops our list again this year, with 59 companies (down from 71 last year). New York
is No. 2 with 43, and Illinois and Texas are
close behind with 40 each. But innovators are everywhere. Georgia (30), Pennsylvania (30), Ohio
(28), New Jersey (23), Missouri (20), and Massachusetts (18) round out the top 10 states in the In-
formationWeek 500 ranking.

GET ALL THE DATA There’s so much more to find out about the InformationWeek 500 that won’t fit in our
pages. The full report is free for a limited time at informationweek.com/analytics/2010/500

53 September 2010 © 2010 InformationWeek, Reproduction Prohibited


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A n a l y t i c s R e p o r t

Region
Region

COMPANY HIGHEST-RANKING IT EXECUTIVE COMPANY HIGHEST-RANKING IT EXECUTIVE


Emcor Group Inc. Joseph A.Puglisi Health Care Service Corp. Brian Hedberg
www.emcorgroup.com Norwalk, Conn. VP & CIO www.hcsc.com Chicago, Ill. CIO
Emerson Kathy McElligott Healthways Inc. Scott Blanchette
www.emerson.com St. Louis, Mo. VP & CIO www.healthways.com Franklin,Tenn. Sr.VP & CIO
Emkay Inc. Andrew Griffith Heartland Health Helen V.Thompson
www.emkay.com Itasca, Ill. VP of IT www.heartland-health.com St. Joseph, Mo. CIO
Emory Healthcare Dee Cantrell Heartland Payment Systems Inc. Kris Herrin
www.emoryhealthcare.org Atlanta, Ga. CIO www.heartlandpaymentsystems.com Princeton,N.J. CTO
Endurance Specialty Holdings Ltd. Tom Terry Heidelberg USA Inc. Doug Robbins/Howard Hutchings
www.endurance.bm New York, N.Y. Exec.VP & CIO www.us.heidelberg.com Kennesaw, Ga. VP Info. Services, U.S./Global CIO
Energen Corp. Lynn Lovelady Herbalife Ltd. Mark Schissel
www.energen.com Birmingham, Ala. General Manager, IT www.herbalife.com Los Angeles, Calif. CIO
Entergy Corp. Jill Israel Hewitt Associates Inc. David Baruch
www.entergy.com New Orleans, La. VP & CIO www.hewitt.com Lincolnshire, Ill. CIO
Equifax Inc. David C.Webb Hewlett-Packard Co. Randy Mott
www.equifax.com Atlanta, Ga. CIO www.hp.com Palo Alto, Calif. Exec.VP & CIO
Exelon Corp. Daniel C.Hill Highmark Inc. Tom Tabor
www.exeloncorp.com Chicago, Ill. Sr.VP & CIO www.highmark.com Pittsburgh, Pa. Sr.VP & CIO
Express Scripts Inc. Gary Wimberly Hilton Worldwide Robert Webb
www.express-scripts.com St. Louis, Mo. Sr.VP & CIO www.hilton.com McLean,Va. CIO
Fair Isaac Corp. Christopher Rence Hitachi Data Systems Corp. Rex Carter
www.fico.com Minneapolis, Minn. VP & Chief Info. & Bus.Transformation Officer www.hds.com Santa Clara, Calif. Sr.VP & CIO
FBL Financial Group Inc. Doug Gumm Hitachi Global Storage Technologies Craig Haught
www.fblfinancial.com West Des Moines, Iowa VP of IT www.hitachigst.com San Jose, Calif. Chief Info. & Environmental Strategy Officer
FedEx Corp. Robert B.Carter Hogan Lovells U.S.LLP William Gregory
www.fedex.com Memphis,Tenn. Exec.VP & CIO www.hoganlovells.com Wash., D.C. CIO
FFE Transportation Inc. Nick Cook
www.ffeinc.com Dallas,Texas VP & CIO Hologic Inc. David Rudzinsky
www.hologic.com Bedford, Mass. Sr.VP of IS & CIO
Fidelity National Information Services Inc. Brian Hurdis
www.fisglobal.com Jacksonville, Fla. Exec.VP,Technology Services Horizon Blue Cross Blue Shield of New Jersey Mark Barnard
www.horizonblue.com Newark, N.J. Sr.VP of IT & CIO
Fifth Third Bancorp. Joseph Robinson
www.53.com Cincinnati, Ohio Exec.VP & CIO Hovnanian Enterprises Inc. Nicholas Colisto
www.khov.com Red Bank, N.J. VP & CIO
Financial Industry Regulatory Authority Inc. Marty Colburn
www.finra.org Wash., D.C. Exec.VP & CTO Hub Group Inc. Dennis Polsen
www.hubgroup.com Downers Grove, Ill. Exec.VP of IS
First Data Corp. Kevin Kern
www.firstdata.com Atlanta, Ga. Exec.VP & CTO Hyatt Hotels Corp. Mike Blake
www.hyatt.com Chicago, Ill. CIO
First Horizon National Corp. Bruce Livesay
www.firsthorizon.com Memphis,Tenn. Exec.VP & CIO Indiana Farm Bureau Insurance Greg Clancy
www.infarmbureau.com Indianapolis, Ind. Sr.VP & CIO
Fiserv Inc. Maryann Goebel
www.fiserv.com Brookfield,Wis. Exec.VP & CIO Infor Global Solutions Inc. Soma Somasundaram
www.infor.com Alpharetta, Ga. Sr.VP, Global Product Development
Flextronics International Ltd. David Smoley
www.flextronics.com San Jose, Calif. Sr.VP & CIO Ingram Micro Inc. Mario Leone
www.ingrammicro.com Santa Ana, Calif. Exec.VP & CIO
Foley & Lardner LLP Doug Caddell
www.foley.com Milwaukee,Wis. CIO InnerWorkings Inc. Neil P.Graver
www.inwk.com Chicago, Ill. Sr.VP of Technology
Freeman Decorating Services Inc. Richard Maranville
www.freemanco.com Dallas,Texas CIO Inova Health System Geoff Brown
www.inova.org Falls Church,Va. Sr.VP & CIO, Information Technology
Freescale Semiconductor Inc. Sam Coursen
www.freescale.com Austin,Texas VP & CIO Intel Corp. Diane Bryant
www.intel.com Santa Clara, Calif. VP & CIO
Freightquote.com Shawn McCarrick
www.freightquote.com Lenexa, Kan. COO & CIO Intelsat Richard Marlow/Adam Levy
www.intelsat.com Wash., D.C. Sr. Dir. of Satellite Control Sys./VP of IS
Geisinger Health System Frank Richards
www.geisinger.org Danville, Pa. CIO InterContinental Hotels Group (IHG) Tom Conophy
www.ihg.com Atlanta, Ga. Exec.VP & CIO
General Electric Co. John Seral
www.ge.com Fairfield, Conn. VP & CIO, GE Energy IntercontinentalExchange Inc. Edwin Marcial
www.theice.com Atlanta, Ga. Sr.VP & CTO
General Motors Co. Terry Kline
www.gm.com Detroit, Mich. VP of IT & CIO Intergraph Corp. Bill Johnson
www.intergraph.com Huntsville, Ala. VP of Global IT
Genuine Parts Co. Charles A.Chesnutt
www.genpt.com Atlanta, Ga. Sr.VP of IT & Process Improvement International Business Machines Corp. Patrick Toole
www.ibm.com Armonk, N.Y. VP & CIO
Global Crossing Ltd. Anthony D.Christie
www.globalcrossing.com Florham Park, N.J. CTO & CIO Intersections Inc. George K.(Chip) Tsantes
www.intersections.com Chantilly,Va. Exec.VP & CTO
Global Integrated Logistics Bassam Fawaz
www.agilitylogistics.com Irvine, Calif. CIO Intuit Inc. Ginny Lee
www.intuit.com Mountain View, Calif. Sr.VP & CIO
Goodwin Procter LLP Andrew Kawa
www.goodwinprocter.com Boston, Mass. Sr. IT Manager inVentiv Health Inc. Tony Jerig
www.inventivhealth.com Somerset, N.J. CIO
Grange Mutual Casualty Co. Michael C.Fergang
www.grangeinsurance.com Columbus, Ohio VP & CIO Iowa Health System Joy Grosser
www.ihs.org Des Moines, Iowa VP & CIO
Graybar Electric Company Inc. Scott Clifford
www.graybar.com St. Louis, Mo. VP & CIO iQor Inc. Vikas Kapoor
www.iqor.com New York, N.Y. President & CEO
GreenStone Farm Credit Services Brook E.Walsh
www.greenstonefcs.com East Lansing, Mich. Sr.VP & CIO Iron Mountain Inc. Bill Brown
www.ironmountain.com Boston, Mass. Sr.VP & CIO
Grinnell Mutual Reinsurance Co. Dennis H.Mehmen
www.grinnellmutual.com Grinnell, Iowa CIO & VP of Business Information Services j2 Global Communications Inc. Alan Alters/Vince Niedzielski
www.j2global.com Los Angeles, Calif. VP Network Ops./VP of Engineering
Group Health Coop.of South Central Wis. Galen M.Metz
www.ghcscw.com Madison,Wis. CIO & Dir. of IS Jack in the Box Inc. Debra Jensen
www.jackinthebox.com San Diego, Calif. VP & CIO
Growmark Inc. Tim Piper
www.growmark.com Bloomington, Ill. Exec. Dir. of IT & CIO Jarden Consumer Solutions Edward Janowsky
www.jardencs.com Boca Raton, Fla. VP of IT & CIO
Gwinnett Hospital System Inc. Ed Brown
www.gwinnettmedicalcenter.org Lawrenceville,Ga. Sr.VP & CIO J.B.Hunt Transport Services Inc. Kay J.Palmer
www.jbhunt.com Lowell, Ark. Exec.VP & CIO
GXS Inc. Karl Salnoske
www.gxs.com Gaithersburg, Md. Exec.VP & CIO J.C.Penney Company Inc. Tom Nealon
www.jcpenney.com Plano,Texas Exec.VP & CIO
Harleysville Group Inc. Jon Griggs
www.harleysvillegroup.com Harleysville, Pa. VP & CIO JetBlue Airways Corp. Joseph Eng
www.jetblue.com Forest Hills, N.Y. Exec.VP & CIO
The Harry Fox Agency Inc. Louis Trebino
www.harryfox.com New York, N.Y. Sr.VP & CIO Jones Apparel Group Inc. Norm Veit
www.jonesapparel.com Bristol, Pa. Exec.VP of MIS
The Hartford Financial Services Group Inc. Brian O’Connell Juniper Networks Inc. Michele Goins
www.thehartford.com Hartford, Conn. Sr.VP & CIO www.juniper.net Sunnyvale, Calif. CIO
H.B.Fuller Co. Barry Snyder K&L Gates LLP Steven W.Agnoli
www.hbfuller.com St Paul, Minn. VP & CTO www.klgates.com Pittsburgh, Pa. CIO
HCA Inc. Noel Brown Williams Kansas City Power & Light Co. Charles H.Tickles
www.hcahealthcare.com Nashville,Tenn. Sr.VP & CIO www.kcpl.com Kansas City, Mo. VP of IT
HD Supply Inc. Michele Markham Keane Inc. Tom Gary
www.hdsupply.com Atlanta, Ga. Sr.VP & CIO www.keane.com Boston, Mass. CIO
Region Key Northeast South Midwest West

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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
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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

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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.

The U.S. Postal Service’s Intelligent Mail


service, for example, represents a new era
for the 230-year-old mail system, which
still delivers letters and packages by mule
in rural Arizona. Introduced last year and
based on a more complex bar code that
makes it possible to track individual
pieces of mail, Intelligent Mail is more
efficient while giving mega users such as
banks and retailers better visibility into
their direct mail efforts.

Intelligent Mail is one of 15 projects—10 [ FBI’s new Next Generation Workstations enable ad hoc collaboration

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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.

Federal Bureau of Investigation


Special agents and other FBI employees are better equipped to collaborate and track down fugitives
as the result of two agency-wide IT upgrades that deliver much-improved desktop capabilities and
network access.

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.

Centers for Medicare and Medicaid Services


The Centers for Medicare and Medicaid Services’ CMS Dashboard is a first step in making timely data
from the nation’s largest health insurance program more widely available to the public, policy makers,
and healthcare providers. After six months of internal testing, CMS Dashboard was launched as a beta
site in April. In its first iteration, the site lets users track Medicare spending on inpatient hospital serv-
ices by state, by the top 25 diagnosis-related groups, and by the top 10 hospitals in each state. An
example of the federal “open government” initiative, CMS Dashboard uses business intelligence tech-
nology to make data available in bar and bubble charts, time-series graphs, and grid tables. Plans call
for data sets from other CMS programs to be added to CMS Dashboard.

U.S. Air Force


A team at the Air Force Research Laboratory at Wright-Patterson Air Force Base in Ohio has devel-
oped a simple software program, called Lightweight Portable Security, that enables secure computing
in a variety of common scenarios. LPS is available in a free, public version, and in a version intended
for government use called LPS-Remote Access. The latter employs a minimized Linux operating sys-
tem that connects to a hard-coded IP address, establishing a VPN to a remote computer.

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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.

General Services Administration


Agencies across the federal government are taking their first steps into cloud computing, often with
help from the General Services Administration. From the time that the Federal Cloud Computing
Initiative was launched in September 2009, GSA has played a central role in Uncle Sam’s move to the
cloud. GSA CIO Casey Coleman is chairman of the CIO Council’s influential Cloud Computing
Executive Steering Committee, while Katie Lewin is cloud computing program manager at GSA.

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.

Federal Aviation Administration


A linchpin in the FAA’s long-term plan to upgrade the nation’s air traffic control system is Automatic
Dependent Surveillance-Broadcast, or ADS-B, which provides data of unprecedented precision and
timeliness on the whereabouts of aircraft in the air and on the ground. Plans call for the ADS-B sys-
tem to replace the 60-year-old, radar-based traffic control system nationwide by 2013. ADS-B is being

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deployed in a growing number of areas, including Juneau,


Alaska; Louisville, Ky.; and Philadelphia. Because it
employs GPS, ADS-B extends capabilities to new areas of
coverage. ADS-B ground stations were deployed on oil rigs
in the Gulf of Mexico and, in November 2009, service was
turned on, making helicopters and other aircraft over the
Gulf visible to air traffic controllers for the first time. The
system makes for improved “situational awareness” in the
cockpit, too, because pilots receive real-time data on air-
craft that are in close proximity to their own planes.

Recovery Accountability and Transparency Board


While other federal agencies tiptoe into cloud computing,
the Recovery Accountability and Transparency Board
jumped in with both feet. In April, the board transitioned
its public-facing Web site, Recovery.gov, from on-premises
IT infrastructure to Amazon.com’s Elastic Compute Cloud,
making it one of the first government agencies to place such a big bet on a commercial cloud service.
Orchestrated by the board’s IT contractor, Smartronix, the move will lead to an estimated $750,000 in
savings over 18 months, while freeing up hardware and software for other uses. The board figures that
its site is actually more secure than before, because it now has two layers of security—its own, plus
that provided by Amazon.

U.S. Postal Service


The Postal Service’s “Full Service” Intelligent Mail, introduced in May 2009, is still in the early going,
but adoption is growing so quickly that it’s fast becoming a major source of revenue. USPS estimates
the service will be adopted by 50,000 customers and generate $25 billion in annual revenue.

Full Service is enabled by a more sophisticated bar code and upgrades to


USPS’s automated mail-distribution technology. The service is architected for
scale, capable of handling a half-billion pieces of mail and 1 billion scan
transactions daily. Full Service Intelligent Mail is oriented toward businesses
that are heavy-duty mailers, giving them the ability to track individual pieces
of mail and better insight into undelivered mail, which amounts to a stagger-
ing $2 billion annual cost.

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Centers for Disease Control


In the face of fast-spreading health hazards—H1N1, salmonella, seasonal flu—the timely distribution
of preventive and other information is critical. With that in mind, the Centers for Disease Control and
Prevention developed an API that hastens the sharing of its information with other health organiza-
tions, including public health departments and educational institutions. The CDC’s Content API pipes
health and safety information directly to Web sites such as Flu.gov, FDA.gov, and FoodSafety.gov.

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.

Health and Human Services


The Office of the National Coordinator for Health IT is advancing the adoption of electronic medical
records through its work on the Nationwide Health Information Network. A key development is the
NHIN Direct Project, launched in March to expand the number of ways that data can be simply and
securely exchanged at a more local level, such as when a doctor is making a referral to a specialist.
The project involves identifying standards, service definitions, and implementation guides in support
of this important initiative.

Write to John Foley at jpfoley@techweb.com

State And Local Government


Washington, D.C
TrackDC is a leading example of how municipal governments are making data available to citi-
zens in new, user-friendly ways. The District of Columbia describes TrackDC as a “real-time
dashboard.” An ASP.NET application, TrackDC pulls information—performance plans and met-
rics, budget and customer service data, agency documents—from various sources into a Web
interface, and makes data available in machine-readable and other formats.

The initiative’s goals include increasing accountability and public trust by providing better

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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.

Douglas County Sheriff’s Office


Data overload prompted the Douglas County Sheriff’s Office to develop an application that com-
bines geodata from various systems into an interactive map using Google Earth and the county’s
geographic information system from ESRI. The application, called i-Map (short for Incident
Map), gives county employees access to 50 layers of mapped information, including roads, lakes
and rivers, parks, government facilities, and police routes. I-Map integrates with computer-aided
dispatch, letting emergency personnel view call locations and the whereabouts of emergency and
police vehicles and snowplows, as well as the homes of sex offenders or people with special
needs. It also links to data feeds coming from school and government buildings.

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.

Wisconsin Division of Vocational Rehabilitation


The Wisconsin Division of Vocational Rehabilitation recently
deployed videoconferencing systems to 12 of its offices. That alone
wouldn’t warrant special attention, but the division’s clientele—peo-
ple with hearing impairments and other disabilities—made the
project more challenging than most. The agency’s system supports
remote closed captioning of videoconferences, eliminating the need
for on-site sign language interpretation, and includes headsets that
amplify sound for both staff and customers who need it.

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

62 September 2010 © 2010 InformationWeek, Reproduction Prohibited


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Orange County Health Care Agency


The Orange County Health Care Agency has designed and deployed an electronic health record
system for people enrolled in the Medical Services Initiative, a healthcare program for about
45,000 of the county’s indigent adults. The system links pharmacies, lab and diagnostic cen-
ters, hospital emergency rooms, community clinics, and primary care physicians.

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.

California eServices Office


The challenge of serving California’s citizens has been made difficult by the tough economy,
combined with the state’s own budget woes. People come to the state’s primary Web site,
CA.gov, “because they need to, because they have to,” according to California’s eServices Office.
The eServices Office, which develops Web sites and Web applications for state agencies, is
behind several e-government initiatives that have elevated state services at little or no addition-
al cost to state taxpayers.

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.

—Write to J. Nicholas Hoover at nhoover@techweb.com

63 September 2010 © 2010 InformationWeek, Reproduction Prohibited


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[ INDUSTRIES | Banking & Financial Services ]


The following stories examine trends
in eight industries in the InformationWeek
New Regs Require Revised Tech Priorities 500.Find information on all 21 sectors at
It’s been a wild ride for financial services firms in the wake of the Wall Street informationweek.com/500/10/industries
meltdown. New regulations and overseers, rigorous stress testing, and strin-
gent capital adequacy requirements have led banks to re-examine their oper-
ating practices, business models, and customer offerings—and all that adds
up to challenges for financial-sector CIOs.

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

Improve Web operations


53%
and
45%
customer experience
8.2%of annual
revenue spent
on IT, on average

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

Engage customers in new ways


IT spending in financial services has a 24%
stronger customer focus than the survey
total: 53% of CIOs plan to introduce new
IT-led products and services vs. 40% for all
Improve customer service
24%

Pursue new global opportunities


24%
5 Banking & Financial
Services Companies

industries, and 45% are building improved


of companies’ CIOs
Rank
are responsible
Web operations and customer experiences Create a new business model or revenue stream The Vanguard Group Inc. 1
for innovation 18% Knight Capital Group Inc. 14
vs. 34% for all industries. Move organization toward an eco-friendly IntercontinentalExchange Inc. 16
IT environment
5% First Horizon National Corp. 20
—Ivan Schneider and Chris Murphy Equifax Inc. 29
Improve interaction with partners and suppliers
40 60 (cjmurphy@techweb.com)
80 100
3%
Data: InformationWeek 500 survey of 38 banking and financial services companies

64 September 2010 © 2010 InformationWeek, Reproduction Prohibited


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[ INDUSTRIES | Consulting & Business Services ]

Tech-Intensive Industry Focuses On Telecom


With average revenue of $2.4 billion, consulting and business services is among the smallest industries
surveyed in the InformationWeek 500. Yet it’s relatively technology-intensive, with average IT budgets
running 3.7% of revenue, the same rate as biotech and pharmaceuticals and well above the 2.9% average
for all InformationWeek 500 industries.

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.

Telecommunications will be a strategic priority


Make business processes more efficient
50%

Introduce new IT-led products or services


45%
3.7%
of annual
revenue spent
on IT, on average

for many companies. This decade will see of companies expect


2010 IT spending
resurgent spending in IP telephony, Martin Lower IT or business costs to exceed 2009
33%
says, partially because these companies need to
replace legacy telecom equipment. There aren’t
many old PDXs out there with useful lives past
four to five years, he says. Another driver for
Get better business intelligence to more
employees, faster
32%

Improve customer service


27%
32% of companies’ CIOs
are responsible
for innovation

Improve Web operations and


IP telephony is the need to support employee customer experience
26%
mobility. There’s increased investment in tele-
working among consulting and business serv-
ice providers. “It’s not just taking your PC
home,” Martin says. “It’s setting up an environ-
Engage customers in new ways
23%

Pursue new global opportunities


23%
5 Consulting & Business
Services Companies

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

65 September 2010 © 2010 InformationWeek, Reproduction Prohibited


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[ INDUSTRIES | Energy & Utilities ]

Industry Aims To Squeeze Out More Efficiencies


Oil and gas companies operate from the ocean floor to the mountaintop, while U.S.-based utilities reach
virtually every household from coast to coast. The sector’s IT needs are equally expansive. But there’s one
common thread: Falling oil and gas prices the past two years have made it imperative that companies in
this industry find operational efficiencies.

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

apps, compared with 25% for all industries.

Doug Haugh, executive VP and CIO of


Make business processes more efficient
75%
Get better business intelligence to more
employees, faster
50%
.8%
of annual
revenue spent
on IT, on average

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%

Introduce new IT-led products or services


29%
29% of companies’ CIOs
are responsible
for innovation

chain become intelligently connected to the Improve Web operations and


network,” Haugh says. customer experience
25%

Energy companies were focused on business


process improvement before the BP spill, but
Engage customers in new ways
21%

Improve interaction with partners and suppliers


13%
5 Energy & Utilities
Companies

the disaster will no doubt affect the demands Rank


on IT. “It’s going to have an impact on how Create a new business model or revenue stream Mansfield Oil Co. 24
8% Exelon Corp. 25
we drill, what redundancies are going to be
Move organization toward an eco-friendly Atmos Energy Corp. 68
required, and what data we need to capture,” IT environment
8% Southern Co. 69
40 60
Mortenson
80 100
says. Pacific Gas & Electric Co. 80
Pursue new global opportunities
4%
—Ivan Schneider and Lorna Garey Data: InformationWeek 500 survey of 24 energy and utilities companies

0 40 60 80 100
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[ INDUSTRIES | Healthcare & Medical ]

Money Talks, Healthcare Providers Listen


For years, the federal government has been prodding hospitals and doctors to use e-health record
systems and other IT to improve efficiency, cut costs, and boost quality of care and patient safety.
But money talks and the healthcare sector is finally responding.

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%

Improve customer service


32%
23% of companies’ CIOs
are responsible
for innovation

and videoconferencing (39%). The percent- Engage customers in new ways


26%
age of healthcare companies rating BI and
collaboration tools’ contributions to pro-
ductivity high is similar to
InformationWeek 500 companies overall.
Improve Web operations and customer experience
19%

Create a new business model or revenue stream


13%
5 Healthcare & Medical
Companies

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

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[ INDUSTRIES | Insurance ]

Stressed Insurers Go Beyond Quick-Fix Cuts


This is the sixth year of a soft insurance market during which premiums have declined an average of about
9% per year, according to TowerGroup, a research firm focused on financial services.

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

At insurer USAA, the push for better produc-


tivity and better service came together with its
Make business processes more efficient

Lower IT or business costs


44%
56%
3.3% of annual
revenue spent
on IT, on average

new Deposit@Mobile service, an app that lets of companies expect


2010 IT spending
people deposit a check by taking a picture of Improve Web operations and customer experience to exceed 2009
36%
it with an iPhone or Android-based smart-
phone. (BlackBerry is in the works.)

USAA is an insurer and a bank, but it has no


Improve customer service
33%

Introduce new IT-led products or services


31%
28% of companies’ CIOs
are responsible
for innovation

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)
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[ INDUSTRIES | Information Technology ]

Out Front With Web Technologies


Among the InformationWeek 500, companies in the IT sector lead the way in their use of Web technolo-
gies. Software as a service is used by 94% of them, compared with 75% across all industries. Some 88%
of InformationWeek 500 companies are using wikis, blogs, and social networking for external collabora-
tion, compared with 72% for the entire population. The trend continues for cloud computing (66% vs.
50%), hosted collaborative apps (62% vs. 55%), mashups (60% vs. 48%), and platform as a service (46%
vs. 17%).

“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

The transformation not only gave HP “a


very high-performance, reliable, and avail-
Make business processes more efficient
46%

Introduce new IT-led products or services


40%
3.9% of annual
revenue spent
on IT, on average

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%

Lower IT or business costs


36%
20% of companies’ CIOs
are responsible
for innovation

products to our customers,” he says.


Improve customer service
30%
IT companies are also ahead of the broader
InformationWeek 500 when it comes to
using certain technologies to boost produc-
Create a new business model or revenue stream
28%

Improve interaction with partners and suppliers


5 Information Technology
Companies

tivity. These include: new types of collabora- 16% Rank


tion software (66% vs. 59%), business intel- Engage customers in new ways Hewlett-Packard Co. 38
14% SAS 56
ligence tools (58% vs. 53%), and unified
Dell Inc. 57
communications (44% vs. 30%). Pursue new global opportunities
8% Apptis Inc. 61
Move organization toward an eco-friendly Advanced Health Media LLC 67
40 60
Within
80 100
BI, investments in predictive analyt- IT environment
6%
ics help IT vendors to better manage their Data: InformationWeek 500 survey of 50 information technology companies

40 60
69
80
September
100
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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.”

—Ivan Schneider (iweekletters@techweb.com)


Figure 4

New Web Technologies


Which new Web technologies are being adopted by your company?

We’re using software as a service


75%
We’re using wikis, blogs, or social networking tools for external collaboration
72%
We’re using hosted collaborative applications (e.g., calendaring, spreadsheets, document management)
55%
We’re using storage, compute, or other cloud computing services
50%
We’re creating mashups that combine Web, enterprise content, and applications in new ways
48%
Employees are encouraged to use consumer-oriented online applications they find useful
27%
We’re using GPS-enabled or location-aware Web applications
25%
We’re using platform as a service (e.g., Microsoft Windows Azure, Google App Engine)
17%
Note: Multiple responses allowed
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

70 September 2010 © 2010 InformationWeek, Reproduction Prohibited


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[ INDUSTRIES | Logistics & Transportation ]

Tight Budgets Keep Industry Focused On Efficiency


InformationWeek 500 logistics and transportation companies aren’t big spenders. The sector, which is
comprised of a broad range of companies including airlines, all types of freight carriers, and even a waste
disposal firm, has an average IT budget of just $51 million, well below the $243 million average for the
entire InformationWeek 500. Spending also is at the low end, with 1.8% of logistics and transport com-
panies’ revenue going to IT compared with 2.9% for all industries.

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.

The new system also lets Old Dominion feed


claims data into its SAP Business Intelligence
Tech Innovation Inside Logistics
0 40 60 80
platform,
100
so it can take a closer look at cus- A snapshot of how logistics and & Transportation
tomers’ claims histories and find ways to fix transportation companies are innovating
systemic problems, says VP of IT Ken
Erdner. For example, one customer shipped
from five or six locations, but only one of
Make business processes more efficient
55%

Improve Web operations and customer experience


45%
1.8% of annual
revenue spent
on IT, on average

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.”

The industry also is keen on improving Web


Engage customers in new ways
30%

Lower IT or business costs


30%
18% of companies’ CIOs
are responsible
for innovation

Get better business intelligence to more


operations and customer experiences. Web employees, faster
27%
technologies they’re adopting include soft-
ware as a service (70%) and external collabo-
ration tools such as wikis, blogs, and social
networking (64%), both slightly lower adop-
Improve customer service
27%

Create a new business model or revenue stream


18%
5 Logistics & Transportation
Companies

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)

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[ INDUSTRIES | Manufacturing ]

Manufacturers Look To Cut Costs


The IT spending outlook in the manufacturing sector is more pessimistic than the InformationWeek 500
overall. Only 48% of manufacturing CIOs say this year’s spending will exceed last year’s, compared with
57% for all industries, and fully 32% expect a decrease.

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.”

Like Lockheed, many manufacturers have Tech Innovation Inside Manufacturing


huge global supply chains. Given that, it’s not A snapshot of how manufacturing
companies are innovating
surprising that 64% of industry CIOs do off-

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%

Two-thirds of manufacturers are making glob-


al support and development part of most IT
Lower IT or business costs
32%

Improve Web operations and customer experience


30%
9% of companies’ CIOs
are responsible
for innovation

workers’ jobs, compared with 49% across all


Improve customer service
industries. This reflects changing relationships 25%
with suppliers that aren’t arm’s length any-
more. “Big firms are telling their outsourcers,
‘You’ll use my distribution or manufacturing
Pursue new global opportunities
20%

Improve interaction with partners and suppliers


18%
5 Manufacturing
Companies

system,’ which gives them more control over Rank


Lockheed Martin Corp. 46
compliance and quality,” says Bob Haas, part- Engage customers in new ways
16% Baker Hughes Inc. 58
ner and global strategic IT practice leader at
Shaw Industries Group Inc. 60
A.T. Kearney. “It makes it easier to pull up Create a new business model or revenue stream
40 60 80 100 14% Heidelberg USA Inc. 63
stakes and run that system at a factory some- Move organization toward an eco-friendly Baldor Electric Co. 82
IT environment
where else.” —Ivan Schneider and Art 14%
Data: InformationWeek 500 survey of 44 manufacturing companies
Wittmann (awittmann@techweb.com)
40 60 80 100

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Figure 5

Innovation Plans: 2010 vs. 2009


From the list below, please select the top ways in which your
company plans to innovate with technology this year.
2010 2009
Appendix

Make business processes more efficient


54%
60%
Introduce new IT-led products/services for our customers
40%
37%
Get better business intelligence to more employees, more quickly
36%
37%
Lower IT costs/business costs
36%
47%
Improve Web operations/customer experience
34%
26%
Improve customer service
26%
23%
Engage customers in new ways
24%
20%
Create a new business model/revenue stream for the company
17%
14%
Pursue new global opportunities
14%
13%
Improve interaction with partners and suppliers
13%
14%
Move organization toward an eco-friendly IT environment
5%
8%
Note: Three responses allowed
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

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Figure 6

Global IT Strategies
Which of the following global IT strategies are in place in your organization?

We do IT outsourcing with vendors outside the U.S.


Appendix
58%
We’re making global support and development part of most IT workers’ regular jobs
49%
We’re integrating more IT workers with business operations
that are global in nature, such as purchasing and supply chain
44%
We’re expanding our own IT operations and hiring outside the U.S.
37%
We do business process outsourcing with vendors outside the U.S.
32%
Other
13%
None of these
17%
Note: Multiple responses allowed
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

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Figure 7

Global IT Strategies: 2010 vs. 2009


Which of the following global IT strategies are in place in your organization?
Appendix
2010 2009

We do IT outsourcing with vendors outside the U.S.


58%
57%
We’re making global support and development part of most IT workers’ regular jobs
49%
42%
We’re integrating more IT workers with business operations
that are global in nature, such as purchasing and supply chain
44%
38%
We’re expanding our own IT operations and hiring outside the U.S.
37%
37%
We do business process outsourcing with vendors outside the U.S.
32%
36%
Other
13%
17%
None of these
17%
17%
Note: Multiple responses allowed
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

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Figure 8

Technology Initiatives That Improved Company Productivity


Which of the following are the most effective steps managers in your
Appendix
organization have made in the past 12 months to raise company productivity?

Deployed new types of collaboration software (Microsoft’s SharePoint or other)


59%
Deployed business intelligence tools
53%
Deployed unified communications (single solution providing e-mail, VoIP, videoconferencing, IM, and presence)
30%
Increased support for telecommuting and remote workers
25%
Deployed videoconferencing
23%
Encouraged workers to use Web 2.0 technologies (e.g., social networking, online applications)
23%
Deployed desktop virtualization infrastructure
22%
Developed mobile applications
22%
Distributed smartphones
16%
Modeled business processes using CASE (computer-aided software engineering) or related tool
7%
Adopted online collaboration tools (e.g., Google applications)
6%
Note: Three responses allowed
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

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Figure 9

Technology Initiatives That Improved Company Productivity: 2010 vs. 2009


Which of the following are the most effective steps managers in your
organization have made in the past 12 months to raise company productivity?
2010 2009
Appendix

Deployed new types of collaboration software (Microsoft’s SharePoint or other)


59%
58%
Deployed business intelligence tools
53%
46%
Deployed unified communications (single solution providing e-mail, VoIP, videoconferencing, IM, and presence)
30%
N/A
Increased support for telecommuting and remote workers
25%
25%
Deployed videoconferencing
23%
21%
Encouraged workers to use Web 2.0 technologies (e.g., social networking, online applications)
23%
21%
Deployed desktop virtualization infrastructure
22%
13%
Developed mobile applications
22%
15%
Distributed smartphones
16%
12%
Modeled business processes using CASE (computer-aided software engineering) or related tool
7%
9%
Adopted online collaboration tools (e.g., Google applications)
6%
N/A
Note: Three responses allowed
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

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Figure 10

IT-Driven Patents and Copyrights


Appendix
Has your organization patented, trademarked, or copyrighted any IT architectures,
products, services, or IT-driven business processes in the past 12 months?

Yes
25%

75%
No

Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

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

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Figure 12

IT Adding Value Back to the Business


Appendix
In which of the following ways has your IT organization added value back to the business?

Developed a revenue-generating product or service


60%
Trademarked an IT-based product or service
19%
Licensed information technology to third-party providers
15%
None of the above
36%
Note: Multiple responses allowed
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

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

Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

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Figure 14

Reporting Structure for CIO: 2010 vs. 2009


Appendix
To whom does the CIO of your organization report?
2010 2009

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

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Figure 15

CIO Areas of Responsibility Outside of IT


Is your CIO officially responsible for areas other than IT?
Appendix
Telecommunications
63%
Business process management/improvement
27%
Innovation
25%
Operations
11%
Procurement
8%
Global business services
5%
Logistics/supply chain
5%
HR
1%
Other
30%
Our CIO is not officially responsible for any areas outside of IT
18%
Note: Multiple responses allowed
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

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Figure 16

CIO Areas of Responsibility Outside of IT: 2010 vs. 2009


Is your CIO officially responsible for areas other than IT?
Appendix
2010 2009

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

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Figure 17

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?
Appendix

Partner with business units to develop new products or services


81%
Provide the systems and support mechanisms for new product development
74%
Lead an R&D team accountable for new products or services
19%
Not involved with new product development
4%
Note: Two responses allowed
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

R1460910_IW500_chart
Figure 18
16

CIO Involvement With New Product Development: 2010 vs. 2009


What are the most important ways in which your CIO is involved
in developing new products for your company?
2010 2009

Partner with business units to develop new products or services


81%
81%
Provide the systems and support mechanisms for new product development
74%
75%
Lead an R&D team accountable for new products or services
19%
13%
Not involved with new product development
4%
5%
Note: Two responses allowed
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

R1460910_IW500_chart 17
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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

Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

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

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Figure 21

IT Budget Trend
What percentage of your company’s worldwide projected annual
Appendix
sales revenue does your total worldwide IT budget represent?

2002 2003 2004 2005 2006 2007 2008 2009 2010


Automotive 1.7% 2.1% 1.5% 1.8% 2.0% 1.2% 1.0% 1.0% 1.6%
Banking and financial services 7.6% 7.1% 8.6% 10.0% 6.0% 6.3% 8.0% 7.6% 8.2%
Biotechnology and pharmaceuticals 3.8% 3.5% 6.0% 4.3% 3.3% 4.3% 4.0% 3.4% 3.7%
Chemicals 2.1% 2.1% 1.5% 2.0% 1.8% 2.0% 2.0% 1.6% 1.8%
Construction and engineering 1.8% 1.4% 0.5% 0.5% 0.8% 0.7% 1.5% 1.1% 1.2%
Consulting and business services 3.5% 3.4% 4.0% 5.0% 3.9% 4.0% 4.3% 4.3% 3.7%
Consumer goods 2.8% 2.1% 1.9% 2.5% 2.0% 2.1% 2.0% 1.5% 2.2%
Distribution 1.4% 1.7% 1.2% 1.5% 1.1% 1.0% 1.0% 1.0% 1.0%
Electronics 5.0% 3.7% 3.0% 3.0% 3.3% 3.0% 3.0% 3.0% 2.1%
Energy and utilities 3.0% 2.1% 2.0% 2.5% 2.1% 2.0% 2.0% 1.6% 1.8%
Healthcare and medical 2.7% 3.3% 3.0% 3.0% 3.5% 4.0% 4.0% 2.9% 3.5%
Hospitality and travel 2.5% 2.0% 1.5% 2.0% 2.5% 2.9% 2.0% 2.9% 3.0%
Information technology 4.2% 4.4% 4.0% 3.5% 3.0% 4.0% 4.0% 3.1% 3.9%
Insurance 4.0% 3.6% 3.4% 3.0% 3.4% 3.0% 3.0% 3.4% 3.3%
Logistics and transportation 4.8% 3.0% 2.7% 2.0% 2.0% 2.0% 2.0% 1.7% 1.8%
Manufacturing 2.7% 2.4% 1.8% 2.0% 2.0% 2.0% 2.0% 1.8% 1.9%
Media and entertainment 5.6% 3.3% 2.5% 3.0% 3.7% 5.0% 5.0% 5.0% 13.5%
Metals and natural resources 1.5% 1.4% 1.0% 1.0% 1.0% 0.8% 1.0% 0.8% 1.0%
Retail: General merchandising 1.4% 1.6% 1.4% 1.0% 1.6% 2.0% 2.0% 1.7% 1.7%
Retail: Specialty merchandising 1.8% 2.7% 2.5% 2.0% 1.5% 2.0% 2.0% 3.1% 1.8%
Retail: All - - - - 1.6% 2.0% 2.0% 2.2% 1.7%
Telecommunications 4.6% 4.6% 4.9% 6.0% 5.4% 5.2% 5.0% 3.3% 3.2%

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

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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

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Figure 23

Public vs. Private


Is your company public or privately held?
Appendix

Public
61%

39%
Privately held

Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

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

Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

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Figure 25

IT Spending Expectations: 2010 vs. 2009


Appendix
Will your total IT spending this year exceed, be equal to, or be less than last year’s IT spending?
2010 2009

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

InformationWeek 500 Spending Overview


Revenue and IT Budget

Average company revenue $9,978


Average IT dollars spent $243
Average IT budget as a percentage of revenue 2.9%

Note: Dollars in millions


Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

R1460910_IW500_chart 25

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Figure 27

Top 100: Innovation Plans


From the list below, please select the top ways in which
your company plans to innovate with technology in 2010.
Appendix

Top 100 The Rest

Introduce new IT-led products/services for our customers


45%
39%
Make business processes more efficient
43%
57%
Improve Web operations/customer experience
36%
33%
Engage customers in new ways
34%
21%
Get better business intelligence to more employees, more quickly
34%
37%
Lower IT costs/business costs
31%
37%
Improve customer service
20%
28%
Create a new business model/revenue stream for the company
18%
17%
Pursue new global opportunities
18%
13%
Improve interaction with partners and suppliers
13%
14%
Move organization toward an eco-friendly IT environment
8%
5%
Note: Three responses allowed
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

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Figure 28

Top 100: New Web Technologies


Appendix

Which new Web technologies are being adopted by your company?


Top 100 The Rest

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

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Figure 29

Top 100: Global IT Strategies


Appendix
Which of the following global IT strategies are in place in your organization?
Top 100 The Rest

We do IT outsourcing with vendors outside the U.S.


59%
57%
We’re making global support and development part of most IT workers’ regular jobs
56%
47%
We’re integrating more IT workers with business operations
that are global in nature, such as purchasing and supply chain
52%
42%
We’re expanding our own IT operations and hiring outside the U.S.
41%
36%
We do business process outsourcing with vendors outside the U.S.
36%
31%
Other
22%
11%
None of these
16%
18%
Note: Multiple responses allowed
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

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Figure 30

Top 100: Technology Initiatives That Improved Company Productivity


Which of the following are the most effective steps managers in your organization
Appendix
have made in the past 12 months to raise company productivity?
Top 100 The Rest

Deployed new types of collaboration software (Microsoft’s SharePoint or other)


65%
58%
Deployed business intelligence tools
56%
52%
Developed mobile applications
32%
20%
Deployed unified communications (single solution providing e-mail, VoIP, videoconferencing, IM, and presence)
28%
31%
Increased support for telecommuting and remote workers
25%
25%
Encouraged workers to use Web 2.0 technologies (e.g., social networking, online applications)
22%
24%
Deployed desktop virtualization infrastructure
21%
23%
Deployed videoconferencing
17%
25%
Distributed smartphones
13%
17%
Adopted online collaboration tools (e.g., Google applications)
10%
6%
Modeled business processes using CASE (computer-aided software engineering) or related tool
5%
7%
Note: Three responses allowed
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

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Figure 31

Top 100: IT-Driven Patents and Copyrights


Has your organization patented, trademarked, or copyrighted an IT architectures,
products, services, or IT-driven business processes in the past 12 months?
Appendix
Top 100 The Rest

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

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Figure 33

Top 100: CIO Areas of Responsibility Outside of IT


Is your CIO officially responsible for areas other than IT?
Appendix
Top 100 The Rest

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

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Figure 34

Top 100: IT Adding Value Back to the Business


In which of the following ways has your IT organization added value back to the business?
Top 100 The Rest
Appendix
Developed a revenue-generating product or service
74%
56%
Licensed information technology to third-party providers
32%
11%
Trademarked an IT-based product or service
34%
15%
None of the above
18%
40%
Note: Multiple responses allowed
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

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

Partner with business units to develop new products or services


88%
79%
Provide the systems and support mechanisms for new product development
70%
75%
Lead an R&D team accountable for new products or services
35%
15%
Not involved with new product development
0%
5%
Note: Two responses allowed
Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

95 September 2010
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Figure 36

Top 100: 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?
Top 100 The Rest

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?

Top 100 The Rest


Exceed Exceed
56%
60%

21% Less
20%
Less
than than
19% 24%
Equal to Equal to

Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

R1460910_IW500_chart 36

96 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 38
Appendix

Top 100: Spending Overview


Revenue and IT Budget

Top 100 The Rest


Average company revenue $14,821 $8,764
Average IT dollars spent $327 $220
Average IT budget as a percentage of revenue 3.5% 2.6%

Note: Dollars in millions


Data: InformationWeek Analytics survey of 2010 InformationWeek 500 executives

R1460910_IW500_chart 37

97 September 2010 © 2010 InformationWeek, Reproduction Prohibited

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