Archive for January, 2014

17th

Corporate boards are more concerned than ever about technology and its effects on the company.

They hear the horror stories of millions of dollars sunk into technology projects that fail to meet their goals.  They see how one dissatisfied customer can use technology-enabled social media to ignite public outrage against a company. boardroom

They read about website failures during critical times and understand the potential for both short-term and long-term consequences.  They may have even themselves endured fallout from a computer virus.  They see the adverse effect a cyber-attack can have on a company in terms of bad press, lost revenue, legal woes, and erosion of customer trust.  They hear of companies failing because of inadequate preparation for continuation when a disaster occurred.

They fear rival companies gaining a competitive advantage through some technological investment.  They see whole industries disrupted as a result of new technologies.  They know of companies no longer in existence because they failed to react to technological changes.

And they see – and feel – that the pace of technological change and its effect on business is rapidly increasing.

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10th

There has never been a stronger need for a solid relationship between the CEO and CIO.  Rapid technology advances are causing changes in societal behavior which in turn are having a profound effect on business.  Social and mobile technologies have given new power to the customer to compare products, solicit/discover third-party product recommendations, publicly voice their support or displeasure, and buy from anywhere.  This has ushered in the ‘Age of the Customer’ which Forrester defines as a “20-year business cycle in which the most successful enterprises will reinvent themselves to systematically understand and serve increasingly powerful customers” (Technology Management in the Age of the Customer). Connecting

Technology is also enabling disruption of entire industries.  Think about the effect, for example, that Amazon has had on retail brick & mortar booksellers.  In fact, an IBM study found that 41% of CEOs expect increased competition from companies outside their industry in the near future (The Customer Activated Enterprise).  They also recognize that companies within their industry are using big data/analytics to improve their decision-making and more precisely target customers.  CEOs are placing a priority on shaking up the status quo in their organization.  There is a sense of urgency and a push for innovation, and technology is obviously a major part of the solution.

But in too many companies, there is a disconnect between the CEO and the CIO.  Jim Stikeleather writes in a Harvard Business Review blog about a research study on the changing role of the CIO and IT (The IT Conversation We Should Be Having).  In short, the study found that CEOs believe that CIOs are not in sync with the new issues CEOs are facing.  In addition, CEOs feel that CIOs do not understand where the business needs to go and do not have a strategy truly supportive of the business.  More specifically, almost half of CEOs feel IT should be a commodity service purchased as needed and do not feel that their CIO understands the business nor how to apply IT in new ways to the business.  Moreover, a KPMG survey found that only 5% of executives feel that their business and IT strategies are 100% aligned (Executives See Disconnect Between Strategy and Technology Within Their Organizations).  Given this, is there any wonder at the call for the elimination of the Chief Information Officer position and/or the addition of other C-level positions like the Chief Innovation Officer, Chief Data Officer, or Chief Digital Officer? (Will CDO Steal CIO’s Leadership Role?)  Yet I can’t help but feel that the major issue here is that too many CIOs have not truly gotten involved in the business and have not worked to develop a solid relationship with the CEO and other C-suite executives.

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