Spread the word: The latest research shows CIOs are finally earning
recognition as indispensable business visionar- ies. Their role in
shaping business strategy marks a notable shift in responsibilities
that's literally redefining what a CIO is. This finding, in the
most recent Optimize magazine survey of 575 senior business
and technology professionals, comes as InformationWeek's own
research finds that some CIOs are in danger of ending up in
diminished roles.
CIOs increasingly are being counted on to help business
leaders--from CXOs to line-of-business managers--make their
companies more agile and customer-centric, the Optimize
survey found. Contributing to this trend is trust in technology and
the IT department to transform the business. Other critical factors
include a CEO who "gets it," a CIO with the well-rounded skills to
be a trusted business leader, and a CIO who spends a good deal of
time communicating with constituents, both internal and external
customers.
Despite these encouraging developments, the survey also shows
that companies and their CIOs still continue to focus a fair amount
of their attention on how to migrate away from maintenance IT and
into innovation IT.
InformationWeek Research earlier this year came to a
similar conclusion: that after years of enjoying rising influence
in their companies, some CIOs are finding themselves in danger of
getting mired in cost cutting and systems maintenance. It's a
career-threatening turn that progressive business technology execs
are doing their best to steer through.
DEBATING THE ROLE
About a year ago, a debate began over the true value of IT, much
of it fed by questions about forced platform or application
upgrades, uncertainty over the maintenance of legacy technologies,
and the ROI for some enterprise applications. Meanwhile, more
commoditized or simplified approaches to technology delivery and
maintenance were gaining ground--such as software as a service,
open source technologies, and outsourcing. At the center of the
debate, a klieg light was shining on the office of the CIO, and
some business leaders started questioning the value of the
role.
No one believed the CIO had reached the point of obsolescence.
But some questioned whether the IT chief truly belonged in
top-level business conversations about managing the company. In
Optimize's surveys over the past five years, we saw an
uptick in the number of CIOs reporting to CFOs--a sign that perhaps
IT was being viewed as a cost center.
But while some observers continue to talk about a decline in CIO
influence, Optimize's research kept indicating that their
influence hasn't declined over the past 12 months. In fact, the
opposite is occurring.
Shaun Coyne, VP and CIO at Toyota Financial Services, says the
evolution of the role is being driven by a tighter interaction
between CIOs and business managers. End users have become "a lot
more empowered with technology," Coyne says, and are "more aware of
how technology can be used as a strategic asset."
Perception is also catching up to reality in a positive way,
Coyne says: As more CIOs take on business tasks, the rest of the
organization is benefiting from that influence. "A lot of the
responsibility now involves putting automated tools in the data
center to take complexity out, so the role has definitely changed
from one of taking costs out of the data center and now providing
strategic advantage to the business," he says.
Just 6% of the business and tech pros Optimize surveyed
see the influence of the CIO in their own company on the decline.
Among the rest, 56% see CIO influence on the rise. What's more, 78%
think the CIO will become much more of a business leader in the
near term. As that happens, they say, CIOs will solicit the help of
others in their sphere of influence to take on some of the more
technical duties, though the vast majority say the CIO will still
be the focal point for major technology decisions, vendor brand
choice, and project management.
The increase in CIO influence doesn't surprise Tony Scott, CIO
at Walt Disney. "I certainly see the role expanding, both for
myself and across the industry," Scott says. "Everything [in IT] is
inextricably linked with the center of business."
page 2