Oregon CIO Summit 2006: Changes and Innovation in IT
by Linda Barney, Barney and Associates
The 2006 Oregon CIO Summit was held as an exclusive IT executive event at Innotech 2006. Jackie Barretta, CIO at CNF and chairperson for the CIO Summit, welcomed the attendees and Keith Bearden, VP, Virtual Information Executives, was the emcee for the opening of the summit. The goal of the event was to help CIOs and IT professionals gain fresh, innovative ideas that are feasible and functional in today's business environment.
 This year's event theme asked the question: “Are You There Yet? Regional Preparedness for Future Success.” The CIO Summit included keynote speeches by Howard Charney, Sr VP at Cisco, and Martin Reynolds, Gartner VP and Fellow, covering innovation and trends they see in IT. Sessions at the CIO Summit covered business resilience and disaster recovery planning, workforce and education issues, and how open source software is being used in the enterprise. The summit included the 2006 Mayor’s Technology Award from Portland Mayor Tom Potter and concluded with the IT Executives of the Year Awards and reception. For more information on the Oregon CIO Summit, see: http://www.innotechoregon.com/Event/summit.php.
This article provides an overview and recap of these CIO Summit sessions:
Innovation and productivity during the Internet's golden age
The CIO Summit began with a keynote speech by Howard Charney, senior vice president for Cisco, who is a member of Cisco’s executive staff that reports directly to CEO John Chambers. In his speech, Charney described the process by which innovation drives technology revolution and, ultimately, productivity. Using historical examples, Charney described how a single breakthrough technology, such as Richard Arkwright’s mechanized cotton mill that triggered the Industrial Revolution, can set in motion a process that transforms economies and eventually changes the way people work, live, play and learn.
Innovation and productivity during the Internet's golden age
Charney described how key technologies, such as RFID and increasing bandwidth, will change business and can be expected to drive economic expansion in Oregon and around the world. Charney indicated that “the Vancouver/Portland metro region has developed into an area with a cluster of high-tech business due to a phenomenon that occurs where there is a collaboration of universities, venture capital and major anchor corporations.” Charney encouraged the business, education, and IT leaders to not only adapt to new technologies and changes but to embrace them to thrive and grow in the coming Internet age.
Business resilience on the fault line
Jeff Johnson, chief of Tualatin Valley Fire & Rescue, acted as moderator for the “Business Resilience on the Fault Line” session that discussed various environmental and business hazards that could interrupt business services and how the IT executive can prepare to be ready to meet such a disruption. Johnson indicated that it is critical that families set up a 72-hour kit for emergencies and that business must determine how they will contact and get their critical staff to work in the case of a major disaster. Scott Burns, geologist at Portland State University, described environmental disasters that could cause major disruptions in the state of Oregon including earthquakes, flooding, volcanic eruption or a tsunami.
Damian Walch, IBM Information Technology Services, BRCS National Practice Executive in charge of business continuity and disaster preparedness at IBM, described business continuity planning at IBM and how IT groups must respond to keep business units functional in cases of technical or physical disruptions. Walch stated, “Information is power and IT systems drive the business. IT executives must be prepared to meet a disruption of systems and business services because any disruption of hardware or software can actually disrupt the business processes. It is a business problem, not just a technology issue. We must change our language from technology to business processes. Technology groups have not set clear expectations for disaster recovery and what can be expected for business continuity.”
Walch indicated that companies must perform a business impact analysis (BIA) and try to identify disasters and estimate the cost of the problem or outage, then prioritize business continuity responses for operational recovery with methods such as redundant hardware, system mirroring, network resiliency and backup offsite data centers. He also stressed that IT groups should understand potential risks and make detailed plans on how to deal with the risks.
Walch stated, “Most groups focus on how much downtime is acceptable. However, just as important is to look at how much data loss an organization can tolerate. Data is important and data loss (even if just a few minutes, hours or days) can have far-reaching negative business impacts.” Walsh also stressed the importance of testing the disaster recovery plan and making adjustments so that the plan meets the stated objectives in case of an actual disaster.
Ben Berry, CIO of the Oregon Department of Transportation discussed ODOT’s business continuity planning and how important it is that CIOs can run their businesses after a disaster. Berry indicated that the major flood in 1996 shut down the data center in Salem for 5 days. Berry states, “Extensive disaster recovery plans have been put in place to make sure this doesn’t happen again. The plan requires that the IT group must be able to deliver the top six functions identified in the disaster recovery plan in 24-48 hrs, including the ability to respond to HIPAA and state / federal regulations.”
The state’s business continuity plan includes hardware and software redundancy, mirroring and leveraging existing data centers as backup. The State is merging data centers, so an alternative being considered is creating a data center as a backup site in Burns, Oregon. This is a viable solution because Burns is far enough away from the Portland/Salem area that it would not likely suffer the same damage in the case of an earthquake, flood, volcano or tsunami yet it is within a reasonable driving distance.
Emerging trends 2010-2015: a convergence of new technologies
Martin Reynolds, VP & Gartner Fellow, Gartner presented the luncheon speech describing the major trends he sees emerging from Gartner research and the impact it will have to technology and IT groups. Reynolds began by asking the question, “What are the most disruptive trends and most significant opportunities arising from emerging information technology?”
His answer was “the real world web that includes identifying, sensing and communicating. Increasingly, real-world objects will not only contain local processing capabilities due to the falling size and cost of microprocessors, but they will also be able to interact with their surroundings through sensing and networking capabilities.” In this category are POS scanners, object identification (2-dimensional ID and RFID tags), lookup services, wireless and sensor networks, and location devices such as GPS. Other trends include transforming raw data into automation and insight; power and information everywhere; virtualization that results in the decoupling of hardware and software; standardization on multiple platforms; event-driven software moving from servers to storage; location stamping software; increases in multicore processors; stateless architectures; and the move to utility grid computing.
Reynolds indicates that “Sensor networks and RFID will deliver enormous amounts of low-grade data that can be processed to reveal high-value information and that data will increase 10 times every six years, resulting in tera-architectures that scale without increasing management load.” He also forecasts ubiquitous wireless networks using WiMax, wireless broadband, Bluetooth, UWB, Zigbee, WiFi, 2.5 G, 3G and HSxPA. Reynolds believes that the multiple wireless standards will mean that organizations will not be able to standardize on one technology—IT groups must make sure that “applications are independent of access bearers and explore technologies and services which can move transparently between bearers.”
Reynolds thinks that there will be a move to a Model Compiler model that translates the business process model to code that can be understood by both programmers and business process experts. This change will mean that “business process modeling expertise is critical.” Reynolds predicts that the magnitude of changes between now and 2015 will result in a number of changes in technologies and how IT groups work within their organization but that it also holds many exciting opportunities.
The IT workforce: now and in the future
Lita Colligan, Workforce Policy Advisor for the Governor’s Office, acted as the moderator of a panel discussing workforce, training and education issues in Oregon and their impact on companies and IT needs. Panel members included Brenda Turner (economist, Oregon Employment Division), Cynthia Brown (professor and chairperson of computer science at Portland State University), and Joe Cortright (economist and principal at Impresa Consulting and an expert of workforce issues).
IT employment and projected changes
Brenda Turner, economist for the Oregon Employment Division, started the session with an overview of IT employment in Oregon and trends for IT employment in the future. Turner indicated that in 2004, 37,237 Oregon workers were employed in IT occupations including scientists, repairers, programmers, systems analysts, managers, software engineers, support specialists, database administrators, network / computer administrators, and network / computer analysts. Turner stated, “IT employment growth is expected to outpace other major groups. Health care occupations are the only group expected to grow faster than core IT. Growth in IT occupations between 2004 and 2014 is expected to be 18.4% compared to 15.0% for all occupations, for a total of 44,072 workers by 2014.” Turner reports that computer support specialists and engineers accounted for half of the IT job orders placed with the Oregon Employment Department in 2005. A large percentage of IT workers will be retiring in the next ten years. Replacement openings for these retiring works will be huge, Turner estimates 43% of the IT jobs in the next 10 years will be replacement jobs.
IT educational outlook
Cynthia Brown, professor and chairperson of the computer science department at Portland State University, described the trends in computer science degrees and student enrollment in Oregon universities. According to Brown, computer engineering, computer science, information systems, information technology, and software engineering were the main computing disciplines for computer science in 2005. Before 1990, there was a strict division between engineering, computer science and business courses. Today, there is an overlap in courses taught relating to hardware and software with courses relating to IT to better meet organizational needs.
Brown reports “the interest in computer science courses is down about 50% nationwide from its peak.” This is often attributed to the news about outsourcing of IT jobs and layoffs in IT. A small recovery has started, resulting in increased enrollment, but educators still anticipate a real shortage in trained workers for IT and computer science jobs. Because of a serious shortage of technology professionals in Oregon, many companies recruit heavily outside of the state. A web site called GET REAL has been created as part of an effort of the Oregon University system to help high school students already in Oregon see the many opportunities available to those who choose computer science as their college major.
IT workforce training needs: Oregon Training Network
There is currently a need for training courses geared toward the IT professional in the state of Oregon and this need will increase dramatically as older IT professionals retire. An innovative program called the Oregon Training Network (OTN) was created to meet the training needs of information technology professionals across various industries state-wide. The Oregon Training Network is an initiative managed by the Software Association of Oregon, and sponsored by state government with a limited-duration contract. OTN will arrange for and deliver training for organizations, with cost savings in the form of reduced travel expense as well as the potential for discounts on actual training fees as a result of volume. For more information, see: http://www.sao.org/Oregon_Training_Network/.
The OTN model has been predicated on leveraging public funds to solicit private investment in workforce training since its inception in the fall of 2004. In addition to the countless hours and in-kind services that have been donated by SAO staff and members to date, 36 different private-sector businesses have participated in courses run by the OTN. In an effort to expand the program and lead it to sustainability, the OTN will focus on doubling the number of private-sector companies involved to 72 over the course of the upcoming program year. OTN has put over 300 people through training since April of 2005. Those 300 people are representatives from 40 private-sector business and 16 different government agencies and educational institutions.
Oregon attracting the valuable "creative class" worker at record rates
Joe Cortright, economist and principal at Impresa Consulting, reports that there has been a seismic shift in labor markets in the US during the last 30 years. During this time, baby boomers have entered their prime earning years, women’s participation in the labor market has nearly doubled, and there has been a five-fold increase in the number of college graduates. In the next 30 years, this will change because many baby boomers will retire and women’s participation in the labor market and education attainment will plateau. Even with the addition of immigrants to the US work force, a labor shortage is predicted.
In this environment, there will be intense competition for the young, highly educated worker who can replace retiring knowledge workers or start new businesses. This group has been labeled the “creative class” or “young and restless” worker. So how do you define this creative class worker? The creative class worker is young (24-35 year-old), from a diverse ethnic group, highly educated (the total of 25-34 year olds with a four-year college degree has increased 50% since 1990), and prefer to live within three miles of a central business district in a metropolitan area.
Portland is a popular destination for the coveted creative class worker and is ranked 8th among US metropolitan areas in an increased percentage change in 25-34 year-olds. These workers are attracted to Portland’s natural assets, green values (recycling, biking and green initiatives), and independent and entrepreneurial climate. The influx of highly educated young workers is good news for Oregon’s IT and computer industry. Oregon is trying to capitalize on this influx of creative workers in its Oregon Business Plan and Regional Business Plan economic development strategies. Businesses and IT groups need to be aware that creative class workers want more control and flexibility in their work, so employers will need to evaluate what is needed to attract and retain these workers.
Open source in the enterprise
A panel moderated by Rich Bader, president of EasyStreet Online Services, and consisting of Andrew Aiken (principal, Olliance Group), and Dirk Hohndel, (director of Linux Strategy, Open Source Technology Center, Software and Solutions Group, Intel Corporation) discussed how open source software is being used in the enterprise and what IT leaders should consider when evaluating and implementing open source software. The session started with a discussion of how open source is having a disruptive effect on IT and how is it challenging traditional models of enterprise software.
The panel indicated that “open source software is a major change in how software is created, sold and maintained.” Open source software is increasingly being used throughout businesses and public organizations—many organizations now use open source software to run their servers, mail systems and databases. Bader states, “All of EasyStreet runs on Linux and 80% of our team uses Linux, increasingly the servers are running LAMP-based applications and new deployments are on sever-based applications—which is where Linux shines.”
But open source software is not just for infrastructure or back-end functionality. Open source developers are also creating software applications in areas such as customer relationship management (CRM), enterprise resource planning (ERP), and content management that rival the quality of commercial proprietary applications in these areas.
Is open source software right for your organization?
IT professionals need to evaluate issues such as support, cost, indemnification, licensing, interoperability and security to determine if an open source solution meets their organization’s needs. The panel stated that one of the core benefits of using open source software is that it gives IT more control of the environment because the code can be modified to meet the needs of the enterprise.
There is a large savings in the cost of acquiring open source technology and in licensing costs. However, the panel cautioned that the initial purchase price is only 15% of the total cost of ownership (TCO). IT groups must have a clear understanding of the costs associated with supporting and maintaining any software because that is where the majority of the cost occurs. Hohndel states, “Traditional organizations still need to know the total cost of ownership over time because of the unknowns and support maintenance cost. The analysis of the TCO should happen before you commit to a solution.”
The panel stressed that open source software is not the answer for every deployment and that the more specialized the market, the harder it is to find an open source solution. An open source solution may not be best for a small business with a limited IT staff because using open source software often requires staff with a technical background or it may use an interface that is not suited for the end user. Aiken states, “The operating system used is almost irrelevant. If you are a large enterprise, and have a large IT department, then an open source software solution may be best because the IT team can customize it and change it to meet their needs.”
The support that is available for installing, deploying and maintaining software should also be considered when evaluating software, whether it is open source or proprietary software. Bader states, “Proprietary and open source software are in separate universes. The level of support by open software developers is legendary, support is 24 X 7 and is often better than proprietary software.”
Getting started with open source software
So how does an organization get started in using open source software? The panel indicated that it is easier than ever to get help in evaluating, installing and maintaining open source software—help is available from the open source community, large commercial vendors who support open source software applications, consulting firms, or ISPs who will host and maintain open source software for an organization. Perhaps the best way to evaluate open source software is to test it in your organization. Aiken states, “You can do your own pilot and beta with open source software without having to buy it first. This allows you to do pre-qualification without dealing with vendors.”
The panel also recommends testing open source software in a non-critical area of your organization. Bader states, “You may want to try open source software on a web or file server in non-critical areas to try it and learn. You will find what support is like and who in the company can deal with it. The infrastructure is where open source software is easier to deploy and support.”
2006 Mayor's Technology Award
During the CIO Summit, Portland Mayor Tom Potter presented the 2006 Mayor’s Technology Award to Matt Lampe, CTO of the City of Portland, for his “exceptional innovation in technology.” Lampe was instrumental in the “Unwire Portland” initiative designed to bring a wireless network to the City of Portland to lower cost of Internet access for city and government as well as to provide wireless Internet access for Portland citizens.
IT Executives of the Year Awards
The Portland Society for Information Management (SIM) presented its 2006 IT Executive of the Year Awards at the final reception of the 2006 Oregon CIO Summit. At this event, SIM recognized the efforts of local IT executives to innovate and contribute to their organizations. These recipients have demonstrated the implementation of innovative technology, active participation in enhancing his/her organization’s competitive advantage, and leadership in the IT community. Nominees for the 2006 IT Executive of the Year Awards include:
- Curt Amo, assistant director, Administrative Services, Oregon Employment Department
- Matthew Calais, CIO and senior VP, Administrative Operations, Legacy Health System
- Curt Pederson, vice-provost & CIO, Oregon State University
- Ida Salazar, VP, Information & Communication Technology, AAA Oregon/Idaho
Winners of the 2006 IT Executive of the Year Awards are:
- Matthew Calais, CIO and senior VP, Administrative Operations, Legacy Health System
(Private sector IT Exec award)
- Curt Pederson, vice-provost and CIO, Oregon State University
Public sector IT Exec award)
About the author
Linda Barney is the founder and owner of Barney and Associates, a technical and marketing writing firm. Founded in 1990, Barney and Associates specializes in technical writing, documentation, online help, web content, and training. Barney and Associates also provides a wide range of marketing writing services including creating media articles, white papers, data sheets, solution briefs, case studies, and reviewer’s guides. Contact Linda at linda@barneyassoc.com.
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