Saying 'Yes, and': How Modern CIOs Are Changing the Game Ft. Filippo Catalano and Lars Hölzer

Summary

In this insightful episode of the GBS Masterminds podcast, Filippo Catalano, CIO at Reckitt, and Lars, Head of Business Services and Digital at Fresenius Kabi, discuss the evolving dynamics between CIOs and GBS leaders. They explore how CIOs can shift from being the 'Office of No' to a more collaborative role, the importance of aligning IT and GBS on tech decisions, and the cautious approach toward RPA adoption. They also delve into managing budgets, vendor relationships, and avoiding the pitfalls of large transformation projects, emphasizing the need for efficiency-driven technology solutions.

Takeaways

• 😀 Technology leaders, especially CIOs, should be seen as enablers rather than gatekeepers, fostering open discussions and exploring possibilities.
• 😀 GBS leaders play a crucial role in selecting technologies that directly affect business processes, ensuring they align with the broader company strategy.
• 😀 Companies are moving away from traditional IT decision-making models towards choosing platform technologies that are cloud-based, scalable, and continuously updated.
• 😀 The best form of automation is one that eliminates the need for it by optimizing processes and systems at the core.
• 😀 RPA (Robotic Process Automation) can often lead to maintenance challenges and may become more of a burden than a solution, especially in complex environments.
• 😀 Simplifying business cases for foundational technologies can lead to a clearer understanding of their direct impact on the bottom line, making investments more transparent.
• 😀 There's a growing focus on 'total service cost' as a way to measure and manage IT and shared services expenses more effectively across the organization.
• 😀 Vendor partnerships should be approached strategically, with clear joint business planning to align expectations and ensure both parties are working towards mutual goals.
• 😀 Smaller organizations should be strategic when choosing technology partners, balancing cost with the quality of the technology provided.
• 😀 Technology decisions should focus on the needs of users, ensuring that choices are not imposed top-down but are rather driven by actual requirements and potential business outcomes.

Q & A

What is the key difference between the perception of CIOs and GBS leaders in organizations?

CIOs are often perceived as the 'Office of No,' focused on optimizing processes and minimizing complexity, while GBS leaders are seen as the 'Office of the Fairytale,' advocating for new, often high-tech solutions. Filippo and Lars both challenge these stereotypes, promoting collaboration between the two roles.

How does Filippo Catalano view the role of CIOs in an organization?

Filippo believes that good CIOs should not default to saying 'no.' Instead, they should adopt an improv technique, responding with 'yes, and...' to foster collaboration and explore possibilities, rather than closing down conversations.

What is Lars' perspective on the role of GBS leaders in technology adoption?

Lars sees GBS as one of the most important internal customers of the CIO organization. GBS leaders advocate for the adoption of new technologies to increase efficiency and reduce costs, working closely with CIOs to align on the best solutions for the company.

What is the recommended approach for GBS in selecting enabling technologies?

Both Filippo and Lars emphasize the importance of strong collaboration between IT and GBS in selecting technologies. Filippo suggests GBS should be closely involved in the decision-making process, as they are often the primary users of the technology.

How do Filippo and Lars view the use of Robotic Process Automation (RPA)?

Filippo and Lars are both cautious about RPA. Filippo believes that the best automation is the one you don't need—when processes work well natively. Lars also views RPA as a workaround for poorly designed processes, not as a true solution to transformation.

What advice does Filippo offer regarding technology investments and ROI?

Filippo advises focusing on technology investments that have a direct effect on the company’s P&L, rather than overthinking business cases for foundational elements like network resilience, which do not have a clear ROI.

What is Lars' experience with budgeting and ROI in technology investments?

Lars shares that in companies with limited budgets, ROI is often measured over 12 to 18 months. In companies with more flexibility, strategic investments can be made without strict payback periods. It all depends on the company’s financial health.

What is the risk of focusing too heavily on large ERP transformation projects like SAP S4 HANA or Oracle Cloud?

Filippo warns against placing too much hope in large, multi-year ERP transformation projects, as they often focus solely on technology change and neglect business process transformation. Without a clear strategy for business process architecture, these projects may not unlock significant value.

How can companies navigate conflicts of interest when working with technology vendors?

Filippo recommends creating joint business plans with key vendors to set clear expectations, measure value, and ensure alignment with the company’s goals. Partners should collaborate with each other to achieve a common outcome, rather than competing.

How do Filippo and Lars suggest companies manage vendor relationships effectively?

Both Filippo and Lars stress the importance of transparency and clear communication when working with vendors. Filippo suggests a balanced approach, treating vendors as extensions of the company, while Lars emphasizes the need for a partnership-based relationship, especially for companies with less market power.