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Starbucks' Next-Generation CIO: Young, Fast and In Control

 

Change is brewing in the CIO ranks. Just take the case of Starbucks' Stephen Gillett: The collegiate football player, hard-core gamer and socially adept exec is ambitious, digitally inclined and young. Here's why he's a new breed of CIO, and what he has to do to help turn around the coffee giant.

View Article »

READER FEEDBACK

Sam A Wed, 2009-01-07 14:42

..."department "from being perceived as and operating like a traditional IT shop...to becoming a technology company and using the term 'technology' versus 'IT' when we look at how we're going to transform our business.""

That sounds oddly a LOT like what I've been evangalizing at my workspace, in addition to concepts such as partnerships with the business and two-way accountabilty. Some cultures will adapt to it better than others, but adapt they must.

Jayanth S Wed, 2009-01-07 17:26

An interesting read but off the mark on how technology could transform Starbucks.

Without innovative products to get them off the ground, technological transformation can only get them so far.

Michael D. Thu, 2009-01-08 12:41

Kudos to Stephen and Starbucks for rethinking the business and looking for opportunities.

The other comment was correct in that ultimately it rests on the ability to innovate, and quickly. Best of luck.

Panagiotes Baziotopoulos Mon, 2009-01-12 12:34

There are times when one cannot find another word for nonsense... especially when he is faced with cheer nonsense...

This is one of those cases…

Let me make a suggestion equally stupid…

Why don’t you take cocaine (and suggest to your colleagues to take too) in order to be smart and alert at the time of service…?

The ideas that will flow over your head will be unforgettable… although I am not so sure if they are of any practical value…

Man, Business is not a matter of high speed senseless decisions…

It is a mater of clever ideas you may have even at your sleeping time...

These days millions of people lost everything because they followed simplistic and stupid suggestions, just of the air, without giving them a second thought…

Cut the shit and come to your senses…

cageybee Mon, 2009-01-12 12:39

I wonder how many other CIO's are gamers? I thought I might be the only one that pwned.

Ken Tue, 2009-01-27 21:18

These guys are in a world of hurt and hiring a new (and fast) and inexperienced CIO is not going to help them. That being said, you got to give him some credit because he is a 'marketing machine' .......

Good luck Starbucks.

Sell your stock. The price is now under $10 when it was almost $30 two years ago.

Galford M Thu, 2009-01-29 02:32

Very interesting article, I found it online after the earnings call today. I agree with the posts above, the company faces real challenges on all fronts. I disagree that a new CIO is marginal in that effort and this guy is clearly not inexperienced. Just limited time overall, but good career. And kudos to CIO for writing this and not a press release from Starbucks.

I think it is refreshing that new generation, new leader is engaged in a company I own stock in. I voted for Barack for the same reasons, so I would give this new perspective and thus Steven a chance and watch him and the other exec team deliver results.

My kids play Warcraft, they read this and thought it was a great story for them as well.

Good luck!

Dean Mon, 2009-02-02 15:56

This article has a number of details that really just don't seem relevant: does it really matter at all that he was a jock, has an MBA, is a gamer and has a vast social network? What does any of that have to do with his ability to deliver the goods for Starbucks?

Consider the statement: "Former managers describe Gillett as a socially gifted and highly charismatic businessperson. Just how charismatic? In 2006, he became the CIO of Corbis, which is owned by Bill Gates. During his tenure, Gillett often went head to head with Gates on internal technology-purchasing decisions and persuaded Gates to adopt tech platforms that were, in some instances, from Microsoft's competition, such as SAP's ERP products." Charistmatic is generally defined as having the ability to influence in a positive way - what if he is simply a big enough bull to plow even Bill Gates under? Just because he influenced Gates doesn't mean he did it because of his charisma.

At the end of the day what will determine the success of Starbucks is having compelling products and services that customers are willing to pay for. If they can't do that then all of the charismatic leaders and technology won't help them.

Michael Sola Mon, 2009-02-02 17:08

I like that Stephen spent time getting to know the business and doing some hands on work to appreciate what is involved. Finding innovation behind and in front of the counter is what will help Starbucks get back to a stable environment and knowing the business is critical.

Knowing your customers is also key, being able to slice and dice them so better segmentation of your message can target the right groups is the approach in how all of us in the industry will survive the future especially as the digital / connected customers become the purchasing power. Who better then IT to lead that charge. Good luck Stephen!

Patrick Dickson Sun, 2009-02-15 14:39

Starbucks made a truly shortsighted decision several years ago to not offer free wifi access, requiring customers to open a TMobile account. I believe this must have cost them lots of business and loyalty from wired customers, as other coffee shops such as Beaners and Caribou and many other cafes offered free wifi. After paying a premium for Starbucks coffee being asked to pay $10/hour or whatever to TMobile was insulting. Starbucks now offers a partial step toward free wifi, but now has the hassle of using a Starbucks card.

Let it go! Make money on your coffee! People expect free wifi and will take their business elsewhere for it.

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