Pharma CIO transforms IT organization into low-risk business partner

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Enterprise Portfolio Management and Budgeting:

Global Pharma CIO Transforms IT Organization into Accountable, Low Risk Business Partner
Capitalizes on new enterprise IT portfolio investment and spend management process and governance framework

A global pharmaceutical company hired a new CEO to restructure the organization after their industry ranking and market share fell dramatically from first to seventh place in a relatively short period of time. Among the initial goals introduced by the CEO was a long-term, cost-cutting target of $4 billion within five years. This strategy included restructuring the global IT organization, whose yearly budget was approximately $1.5 billion. A new CIO was appointed and tasked with:

  • Aligning the IT department to the new corporate strategy;
  • Restructuring 10 separate divisions and consolidating to half the amount;
  • Reducing spend across the board by 15%; and
  • Instilling a new company culture focused on delegation and accountability.

To achieve these objectives, the new CIO had to overcome challenges in the following areas:

  • Once a year planning occurred with little contingency.
  • A lack of consistency across divisions in terms of technology platforms and process.
  • Lack of clarity as to ownership, funding, and management responsibility of investments within IT divisions and across Business and IT units.
  • Unclear investment alignment to corporate strategy – investments decisions were made using siloed division objectives only.