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CIO As Chief Integration Officer a New Charter for IT

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CIO As Chief Integration Officer a New Charter for IT ChapterUK extractEdition CIO as chief integration officer A new charter for IT CIO as chief integration officer CIO as chief integration officer A new charter for IT As technology transforms existing business models and gives rise to new ones, the role of the CIO is evolving rapidly, with integration at the core of its mission. Increasingly, CIOs need to harness emerging disruptive technologies for the business while balancing future needs with today’s operational realities. They should view their responsibilities through an enterprise-wide lens to help ensure critical domains such as digital, analytics and cloud aren’t spurring redundant, conflicting or compromised investments within departmental or functional silos. In this shifting landscape of opportunities and challenges, CIOs can be not only the connective tissue but the driving force for intersecting, IT-heavy initiatives – even as the C-suite expands to include roles such as chief digital officer, chief data officer and chief innovation officer. And what happens if CIOs don’t step up? They could find themselves relegated to a “care and feeding” role while others chart a strategic course toward a future built around increasingly commoditised technologies. OR many organisations, it is increasingly and apply emerging technologies to the Fdifficult to separate business strategy business roadmap. CIOs are uniquely suited from technology. In fact, the future of to balancing actuality with inspiration by many industries is inextricably linked to introducing ways to reshape processes and harnessing emerging technologies and potentially transform the business without disrupting portions of their existing business losing sight of feasibility, complexity and risk. and operating models. Other macro- But are CIOs ready to rumble? According level forces such as globalisation, new to a report by Harvard Business Review expectations for customer engagement and Analytic Services, “57 per cent of the regulatory and compliance requirements business and technology leaders surveyed also share a dependency on technology. view IT as an investment that drives As a result, CIOs can serve as the critical innovation and growth.”1 But according link between business strategy and the IT to a Gartner report, “Currently, 51 per cent agenda, while also helping identify, vet of CIOs agree that the torrent of digital 1 Tech Trends 2015: The fusion of business and IT opportunities threatens both business success • Organise assets to address business and their IT organisations’ credibility. In priorities. How well are core IT functions addition, 42 per cent of them believe their supporting the day-to-day needs of current IT organisation lacks the key skills and the business? Maintaining reliable capabilities necessary to respond to a complex core operations and infrastructure can digital business landscape.”2 establish the credibility CIOs need to To remain relevant and become influential elevate their missions. Likewise, spotty business leaders, CIOs should build capabilities service and unmet business needs can in three areas. First, they should put their quickly undermine any momentum CIOs internal technology houses in order; second, have achieved. Thus, it is important to they should leverage advances in science and understand the burning issues end users emerging technologies to drive innovation; and face and then organise the IT portfolio finally, they need to reimagine their own roles and metrics accordingly. Also, it’s to focus less on technology management and important to draw a clear linkage between more on business strategy. the balance sheet, today’s operational In most cases, building these capabilities challenges and tomorrow’s strategic will not be easy. In fact, the effort will likely objectives in language everyone can require making fundamental changes to understand. As Intel CIO Kim Stevenson current organisational structures, perspectives, says, “First, go after operational excellence; and capabilities. The following approaches may if you do that well, you earn the right to help CIOs overcome political resistance and collaborate with the business, and give organisational inertia along the way: them what they really need, not just what they ask for. Master that capability, and • Work like a venture capitalist. By you get to shape business transformation, borrowing a page from the venture not just execute pieces of the plan.” capitalist’s playbook and adopting a portfolio management approach to IT’s balance sheet • Focus on flexibility and speed. The and investment pool, CIOs can provide the business wants agility – not just in the business with greater visibility into IT’s areas way software is developed, but as part of focus, its risk profile and the value IT of more responsive, adaptive disciplines 3 generates. This approach can also help CIOs for ideating, planning, delivering and develop a checklist and scorecard for getting managing IT. To meet this need, CIOs can IT’s house in order. direct some portions of IT’s spend toward fueling experimentation and innovation, • Provide visibility into the IT “balance managing these allocations outside of s h e e t .” IT’s balance sheet includes rigid annual budgeting or quarterly programmes and projects, hardware planning cycles. Business sponsors serving and software assets, data (internal and as product owners should be embedded external, “big” and otherwise), contracts, in project efforts, reinforcing integration vendors and partners. It also includes between business objectives and IT political capital, organisational structure, priorities. Agility within IT also can come talent, processes and tools for running from bridging the gap between build the “business of IT.” Critical to the CIO’s and run – creating an integrated set of integration agenda is visibility of assets, disciplines under the banner of DevOps.4 along with costs, resource allocations, For CIOs to become chief integration expected returns, risks, dependencies and officers, the venture capitalist’s playbook an understanding of how they align to can become part of the foundation of this strategic priorities. 2 CIO as chief integration officer New boardroom discussions With digital now a key boardroom topic, companies are addressing new technology needs in different ways. A recent Forrester survey found that “37 per cent of firms place ownership of digital strategy at the ‘C’ level, with a further 44 per cent looking to a senior vice president (SVP), executive vice president (EVP), or similar role to direct digital plans. However, less than a fifth of firms have or plan to hire a chief digital officer (CDO), meaning that digital accountability lives with an incumbent role.”a CIOs can either fill these new digital needs themselves or serve as the connective tissue integrating all tech-related positions. Shaping business strategy Collaborating infused with technology – to define a vision and roadmap, advising and executing on realities provide integration, security and of existing capabilities and the data services, and drive sustainable potential of emerging trends. roll-out of digital services. Framing initiative investments, Planning and operations, delivery and budget in execution of new capabilities and terms of risk management and governance of internal, external, return on assets. structured, and unstructured data sources and surrounding tools. Understanding, prioritising, Seeding and addressing pain points and technology-based innovation ideas inefficiencies in analytics, business while complementing the “art of processes and operations – the possible” with the “realities retooling how work gets done. of the feasible.” Partnering to implement new Defining marketing tools with hooks into customer personas and journeys back-office data and transactions, and exploring how experiences while retooling to offer agile can be improved via existing and delivery for new digital solutions. emerging technology. Elevating technology to the boardroom agenda, represented as a strategic asset for profitability, effective and efficient operations and growth. Source: a Martin Gill, Predictions 2014: The Year Of Digital Business, Forrester Research, Inc., December 19, 2013. 3 Tech Trends 2015: The fusion of business and IT transformation – setting up a holistic view of • Collaborate to solve tough business the IT balance sheet, a common language for problems. Another manifestation of essential conversations with the business and “integration” involves tapping into a renewed commitment to agile execution of new ecosystems for ideas, talent and the newly aligned mission. These capabilities potential solutions. Existing relationships are necessary given the rapidly evolving with vendors and partners are useful technology landscape. on this front. Also consider exploring opportunities to collaborate with non- Harness emerging traditional players such as start-ups, incubators, academia and venture technologies and capital firms. Salim Ismail, Singularity scientific breakthroughs University’s founding executive director, to spur innovation encourages organisations to try to scale at exponential speed by “leveraging the One of the most important integration world around them” – tapping into diverse duties is to link the potential of tomorrow thinking, assets and entities.7 to the realities of today. Breakthroughs are An approach for evaluating new happening not just in IT but in the fields of technology might be the most important science: materials science medical science, legacy
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