IT`s role in business has undergone a fundamental change in recent years, with IT strategies, tactics and success metrics now needing to be aligned with an organisation`s business goals. The resultant power shift has redefined the role of CIOs within corporations, the METAmorphosis 2005 Conference heard yesterday.
Delivering the keynote address at the opening of the Meta Group event, on the East Rand, Willie Appel, VP, program director, executive programs at Gartner, argued that the IT industry, and CIOs in particular, need to change their mindsets.
He said there was a move across all industries towards a real-time environment, which better enables governance and planning.
Commenting on current IT-business trends, Appel noted that there was a move towards federated and networked operational models, with IT architecture shaped around partner and informational economic frameworks.
He proposed that the CIO`s role is evolving to that of "chief process officer", linking business innovation, adaptability and pervasive integration via technology.
Also speaking yesterday, Jean-Louis Previdi, VP, program director, executive programs at Gartner, added that this will result in CIOs triggering change in business processes, and linking across different teams within organisations.
"It`s the CIO`s role to make sure that all the tools are there for doing business," Previdi said, adding that CIOs are also becoming increasingly responsible for cost-cutting measures within the organisation, through IT-driven improved productivity in specific tasks.
Cost-cutting
"A CIO`s role is becoming more and more a cost-cutting exercise. This is not an option; cost-efficiency must be improved every year."
Previdi also stressed that due to changing business processes and demands, IT is no longer simply expected to drive supply, but also to drive demand within an organisation, and suggested that IT time should be split 50:50 between supply and demand.
"There needs to be a good balance, with pressure to trade off demand and supply capabilities, or else an organisation may over-invest and not utilise its assets. Managing demand must fit in with the business plan, and there should not be discrepancies between supply and demand lifecycles," Previdi commented.
He urged CIOs to develop good financials for IT, as businesses understand this, coupled with not only quantity, but also quality, management.
In addition, Previdi said CIOs should apply the CEO`s view on IT execution excellence, by running the IT organisation (ITO) like a business, measuring efficiency and effectiveness routinely, and improving project and sourcing management.
"IT must be another factory within the business, and must optimise supply through generating a return on existing infrastructure and assets. CIO roles are changing - business acumen and ITO discipline are prerequisites to have a seat at the executive table."
Appel added that a CIO should manage the ITO as a company sub-brand and establish ITO PR/communications campaigns to broadly communicate projects, milestones and successes, as well as managing the IT portfolio in the context of strategic business initiatives and their supporting business routines.
"The new socio-economic/political reality is raising the contextual bar for business leadership, including the CIO. Technology for technology`s sake is pass'e - IT has infused socioeconomic/political thinking, realities and solutions."
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