FFIRS 11/04/2011 12:11:55 Page2 FFIRS 11/04/2011 12:11:55 Page1 ON TOP OF THE CLOUD FFIRS 11/04/2011 12:11:55 Page2 FFIRS 11/04/2011 12:11:55 Page3 ON TOP OF THE CLOUD How CIOs Leverage New Technologies to Drive Change and Build Value across the Enterprise HUNTER MULLER JohnWiley&Sons,Inc. FFIRS 11/04/2011 12:11:55 Page4 Copyright#2012byHunterMuller.Allrightsreserved. PublishedbyJohnWiley&Sons,Inc.,Hoboken,NewJersey. PublishedsimultaneouslyinCanada. Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,or transmittedinanyformorbyanymeans,electronic,mechanical,photocopying, recording,scanning,orotherwise,exceptaspermittedunderSection107or108of the1976UnitedStatesCopyrightAct,withouteitherthepriorwrittenpermission ofthePublisher,orauthorizationthroughpaymentoftheappropriateper-copyfeeto theCopyrightClearanceCenter,Inc.,222RosewoodDrive,Danvers,MA01923,(978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com. Requests to thePublisherforpermissionshouldbeaddressedtothePermissionsDepartment, JohnWiley&Sons,Inc.,111RiverStreet,Hoboken,NJ07030,(201)748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions. LimitofLiability/DisclaimerofWarranty:Whilethepublisherandauthorhaveused theirbesteffortsinpreparingthisbook,theymakenorepresentationsorwarranties withrespecttotheaccuracyorcompletenessofthecontentsofthisbookand specificallydisclaimanyimpliedwarrantiesofmerchantabilityorfitnessfora particularpurpose.Nowarrantymaybecreatedorextendedbysalesrepresentatives orwrittensalesmaterials.Theadviceandstrategiescontainedhereinmaynotbe suitableforyoursituation.Youshouldconsultwithaprofessionalwhere appropriate.Neitherthepublishernorauthorshallbeliableforanylossofprofitor anyothercommercialdamages,includingbutnotlimitedtospecial,incidental, consequential,orotherdamages. Forgeneralinformationonourotherproductsandservicesorfortechnicalsupport, pleasecontactourCustomerCareDepartmentwithintheUnitedStatesat(800)762- 2974,outsidetheUnitedStatesat(317)572-3993orfax(317)572-4002. Wileyalsopublishesitsbooksinavarietyofelectronicformats.Somecontentthat appearsinprintmaynotbeavailableinelectronicbooks.Formoreinformation about Wiley products, visit our web site at www.wiley.com. LibraryofCongressCataloging-in-PublicationData: Muller,Hunter Ontopofthecloud:howCIOSleveragenewtechnologiestodrivechangeand buildvalueacrosstheenterprise/HunterMuller. p. cm. Includesindex. ISBN978-1-118-06582-2(hardback);ISBN978-1-118-21443-5(ebk); ISBN978-1-118-21454-1(ebk);ISBN978-1-118-21458-9(ebk) 1. Informationtechnology—Management. 2. Technologicalinnovations— Management. 3. Cloudcomputing. 4. Chiefinformationofficers. I. Title. HD30.2.M84952012 6580.0546782—dc23 2011038803 PrintedintheUnitedStatesofAmerica 10 9 8 7 6 5 4 3 2 1 FFIRS 11/04/2011 12:11:55 Page5 For Sandra, Chase, and Brice FFIRS 11/04/2011 12:11:55 Page6 FTOC 11/05/2011 14:21:8 Page7 CONTENTS Foreword xi Preface xv Acknowledgments xxiii Introduction xxv xxvii ANewBusinessModel xxviii ‘‘ThoughtfullyProgressive’’ PartI: Transformational Leadership 1 Chapter 1 TheRisingTide 3 6 TheCIOasRockStar 7 RealStoriesfromRealITLeaders 8 LearningfromListening 9 MoreThanTechnology 9 TheRealChallengeIsOrganizational 12 LeadershipIsEssential Chapter 2 ITDoesMatter 17 20 StayFocusedonDeliveringValue 22 ReplacingthePerpetualPendulum 24 DrivingtheInnovationAgenda 28 It’sAllaQuestionofPerspective Chapter 3 TheEngineofInnovation 31 36 BringingInnovationtotheSurface 39 IncentivizingInnovation vii FTOC 11/05/2011 14:21:8 Page8 viii CONTENTS Chapter 4 FindingtheRightBalance 45 49 WindsofChange 51 TheThirdBucket 53 TheCloser 55 OutsideversusInside 57 ArticulatingtheValueofTechnology Chapter 5 TheCustomer-FocusedCIO 61 65 TopLineorBottomLine? 66 DrivingBusinessGrowth 68 TheRapidEnabler 72 Own,Rent,orBoth? 75 MultipleModels 76 AlsoConsidertheUserExperience Chapter 6 ToCloudorNottoCloud 79 83 FailFast,FailCheap 85 ASkunkWorksintheCloud 87 WeavingtheSeamlessTapestry PartII: DrivingChange 91 Chapter 7 InFrontoftheFirewall 93 100 AvonCalling 103 WhentheModelFits Chapter 8 TheNewSpeedofChange 107 115 UpdatingtheMentalModel 119 InnovationunderPressure 121 TheCloudonWheels 122 CampaigningintheCloud PartIII: BuildingValue 127 Chapter 9 PushingtheEnvelope 129 138 TwoSidesoftheSameCoin 142 AMultiplicityofClouds 146 TurnoftheTide 152 Translating‘‘SpeedsandFeeds’’intoCashFlow