Transformation of the role of the CIO

 Are you experiencing an increased demand on technology? Are you finding out about outages on Facebook or Twitter or is your business simply going around you to obtain IT-enabled business capabilities? For years we have talked about aligning IT with the business following IT integrated with the business and many organizations may have simply cried enough and moved on independently, but not all. This week I was fortunate enough to spend 90 minutes with a forward thinking CIO of an organization in Asia that understands and has embraced the paradigm shift that is taking place and has leveraged it for organizational value.

The CIO (let’s call him Alex; names changed to protect the innocent) at a forward-looking organization based in Asia noticed the changing posture of the business post-global financial crisis. Looking to foster innovation and growth, both in market share and revenue, the first focus was getting close to the strategy development to ensure that the IT army could be mobilized for battle. With the analogy of a general going to war, Alex, evolved his role and that of his close lieutenant into a business technology manager and portfolio strategist who must manage the integrated IT supply chain as a service provider, broker and consumer.

IT must evolve from its pure operational role to a more strategic and business-oriented one in order to address the need for portfolio planning, cost transparency and better business and vendor relationships.

Many of these “transformed” executives demonstrate a unique ability to understand and speak the language of business and drive things like financial planning, vendor management, strategic sourcing and portfolio strategy. This means communicating IT services, costs and value in a way that helps stakeholders make informed decisions about the use of IT across multiple technology portfolios.

These strategic executives must be able to communicate the following to the business owners:

  • The value, in business terms, that the business is deriving from the IT enabled business service;
  • Costs of the services to be delivered to the business;
  • Reporting of the delivery of IT-enabled business on-time, within budget and within use expectations,
  • Processes and options to reduce cycle time and get new products to market faster;
  • Risk implications of outcomes so the business can accept or mitigate.

In order to deliver the above, Alex has implemented an Office of the CIO (OCIO) whose goal is to focus the IT organization on the effective and agile meeting of business expectations. The OCIO functions include Risk Management, the Project and Portfolio Management team, Security, vendor and supplier management, and business relationship management. It also is responsible for policy establishment, monitoring and the management of third party relationships including the identification and selection of partners such as cloud service providers.

Has your organization, like Alex’s considered the implementation of an OCIO function?

This blog also appears on the CA Service Management blog.

By: Robert Stroud
Robert Stroud serves as VP and as Service Management, Cloud Computing and Governance Evangelist at CA Technologies. Robert also serves as an International vice president of ISACA, is part of the Framework committee and was the former chair of the COBIT Steering Committee. Robert also serves on the itSMF…
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Article source: CA PPM Blog

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