FEATURE: STATE OF THE CIO
a larger technology business or a mid-sized
retail chain, IT can enable you to be a
market leader.
CIOs need to take the initiative and showcase
the strategic value they bring to the business.
First, they must build relationships with board
members to learn about their goals, then they
can show CXOs how IT will help them turn
their strategic vision into effective action.
We’ll take a look at how the CIO can work
with colleagues in key, board-level positions
to help them achieve their goals:
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of the IT agenda, instead of focusing on the
technology first. CIOs need to put IT needs
in the context of business goals, aligning
technology initiatives with the corporate
strategy led by the CEO.
This way, CIOs can change CEOs’
perceptions of IT, so they come to see it not
just as a support function, but as central to
creating and delivering the overall strategy.
CIOs must demonstrate that IT can be
a driver of revenue, differentiation and
profitability – that it can have a positive,
IT’S ALSO IMPORTANT FOR CIOS TO BE
ABLE TO COMMUNICATE THE BENEFITS
OF TECHNOLOGY INVESTMENTS
CIOs working with Chief Executive
Officers (CEOs) rather than a negative, impact on the
bottom line.
Many CEOs see IT as simply a means to an
end. At best, they might concede that IT can
help increase automation and productivity.
At worst, they’ll view it as a cost centre they
can’t get rid of. Workings with Chief Financial
Officers (CFOs)
As far as CEOs are concerned, IT is expected
to just work – all day, every day – but it’s
still not seen as central to the core business.
When CEOs look at the profit and loss
report, they’ll see IT as a cost line that
blasts a big hole in their profitability. So
CIOs face constant pressure from CEOs to
keep reducing costs while still providing the
always-on availability the business needs.
Establishing a strong relationship built on trust
with the CEO will help the CIO reduce pressure
and position the IT department as a strategic
asset for a company. If CIOs mend fences
with CEOs, they can show how IT is more
than just business support – IT helps open up
new revenue-generating opportunities and
creates a genuine differentiator in products
and customer experience.
The best way to do this is for the CIO to start
thinking like an entrepreneur, putting the
core business and its customers at the centre
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INTELLIGENTCIO
CIOs need to help CFOs see IT in a different
light. They can do this best by proving their
value-add to the finance department.
CFO-driven financial management is
highly dependent on IT systems and data
availability. Commercial data processing,
which includes accounting, revenue
management, expense control and
procurement, closely links IT to finance –
making them counterparts. That’s why the
relationship between the CIO and CFO is of
strategic importance for sustainable finance
operations. When the conversation turns to
budgeting, the CIO needs to ensure budgets
are focused on the projects that need to be
delivered, rather than a seemingly arbitrary
annual cycle.
A narrow focus on rigid annual
budgets can lead to dangerous vendor
lock-in, which can have a damaging
long-term financial impact. Project-based
budgeting is a much more effective way
to ensure IT investments deliver maximum
business value.
Rather than trying to wring every last drop
of ROI from ageing technology, CFOs and
CIOs can work together on a more flexible
approach. In this way, the business can
deploy innovative technology when it’s
needed, helping drive overall ‘business ROI’
rather than relentlessly pursuing a return on
individual investments.
Another challenge for CFOs is to analyse
huge quantities of financial data to identify
future risks and opportunities. The pace
of modern business is so intense that
CIOs must ensure analytical applications
are constantly available to enable critical
decisions to be made in as close to real-time
as possible.
CIOs can form effective partnerships with
CFOs by communicating the business value of
IT investments and showing how they align
with the organisation’s strategic priorities. And
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