CIO Best Practices

JOE STENZEL has worked as editor in chief of the Journal of Strategic Performance Management and Cost Management, and two Warren, Gorham, and Lamont periodicals since 2000. He has written or co-written four other books for John Wiley & Sons: Essentials of Cost Management, From Cost to Performance Management, CFO Survival Guide, and Lean Accounting.

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• Preface ix About the Contributing Authors xixChapter 1 Freedom with Fences: Robert Stephens Discusses CIO Leadership and IT Innovation 1The CIO Leadership Paradox 1The Fences 5Rules and Innovative Augmentation 13The CIO and Enterprise Culture 16Radical Transparency 20Proactive Risk Practices 23The CIO and the Customer 26The IT Organization 34Notes 39Chapter 2 Why Does IT Behave the Way It Does? 41Making Sense of IT Business Management 41Putting the Pieces Together 63Changing the Way IT Behaves 86Notes 97Chapter 3 Cloud Computing and the New Economics of Business 99A Combination of Technologies Create Cloud Computing 100Some Working Defi nitions of Cloud Computing 101Cloud Computing Has Three Component Layers 102Implications of the Transition to Cloud Computing 104A Business Strategy Based on Agility 108Using the Cloud for Business Advantage 111Business Applications with the Greatest Potential 112Cloud Risk Considerations 115Cloud Cost Considerations 118Case Study: Selling "Designer Chocolates" 120Desirable Characteristics of New IT Architecture 123Public Clouds, Private Clouds, and Hybrid Clouds 124Issues to Consider When Thinking about Private Clouds 128The Cloud is a Platform for Managing Business Processes 131Automate Routine Processes, Focus People on Handling Exceptions 134Four Technologies Enable Responsive Business Processes 136Notes 139Chapter 4 Leading with Green: Expanding the CIO's Role in Eco-Effi cient Information Technology Adoption 141What Is Green IT? 144Who Cares about Green IT? 146Green IT: A Quickly Maturing Management Discipline 147Common Challenges Presented by Green 159Role of Public Policy 165Role of the CIO 167Risks and Common Mistakes to Avoid 171Summary 173Notes 174Chapter 5 Sustainability, Technology, and Economic Pragmatism: A View into the Future 177Sustainability 177Globalization, Decentralization, and Sustainability 179Future Opportunities for Improving Global IT Sustainability 187Mobility 203Ubiquity: Pervasive Computing, Ubiquitous Sensors, and Ad Hoc Communications 212Energy: Smart Buildings, Renewables, and Campus Sustainability 215Physical Security and Information Assurance 217Integrating Sustainability into Strategic Planning 220The Future Lies before Us 232Notes 233Chapter 6 How to Measure and Manage Customer Value and Customer Profi tability 237The Rising Need to Focus on Customers 238A Foundation for Customer Portfolio Management 245Distinguishing High from Low Economic Customer Value 255Measuring Customer Lifetime Value 262Balancing Shareholder Value with Customer Value 269The CFO and CIO Must Shift Emphasis 275Appendix 6A: Activity-Based Costing is a Cost Reassignment Network 280Notes 282Chapter 7 Evolution of Networks into Networking 285Evolution of Networks into Networking: Computational, Data, Business, and Personal 285Advances in Computational and Data Networks 289Advances in Storage and Data Networks 291Business Impacts of Business Networking 295Business Impacts of Social Networking 299Virtual Worlds: Second Life 302Democratization and Socialization of Information 306The Wisdom of Crowds? 309The New Reality 311Adapting to the New Reality 315Role of IS/IT in Adapting to the New Reality 317Notes 320About the Editor 327Index 329