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The tale of two CIOs
So what's behind the clashing numbers? The role of the CIO is changing, and where it ends up depends on a variety of factors, including the type of business an organization is in, the stability of its technology portfolio, and especially, the CIO's own traits and expertise.
"The role of the CIO is at a crossroad," Koeppel says. "CIOs are in a place where they can start to make choices between developing the business subject matter expertise, business understanding and leadership skills that really can position themselves as strategic partners with a voice and the seat at the table. Or the alternative, which is to increasingly become much more technical and operational, where the focus is much more about keeping the lights on and reducing expenses. Both are in play."
Koeppel and others say recent trends are tugging at CIOs to take on less business-changing, more operational roles, and it's a tug they need to resist. While the operational side of IT is important, it's not the end goal.
For example, consider a large corporation that has grown through mergers and acquisitions. As the constituent companies -- each with their own CIO -- merge, the former CIOs find themselves reporting to line-of-business executives vs. the main CEO, a situation that could help explain away the SIM data point.
Plus, "large companies that have grown through acquisition tend to have multiple applications for the same business process or proliferation of data centers that have not yet been consolidated," Koeppel says. "For these firms, integration is always an immediate priority. But once the acquisition is done, very often the integration is not completed. And this leaves behind a multiplicity of platforms which then become that much more difficult and expensive to maintain. In those environments, the tendency is very much to spend the dollars on business as usual, keeping the lights on and saving money on IT every year." And that can sap a CIO's time and influence level.
CIOs feel similarly pulled by regulatory requirements, another factor that could be affecting their reporting level. "The CEO may sense that the CIO really needs to have a closer relationship, for example, to either the CFO or COO, especially as they go through the Sarbanes-Oxley, HIPAA and other regulatory changes," SIM's Lofton says.
Because such initiatives become a drain on IT time and budget, the CIO eventually gets very good at handling audits, but less adept at big picture IT innovation.
Another tug is the pull of outsourcing, automation and new tools such as managed services and software-as-a-service. In the end, the IT environment that makes smart use of these tools will become more stable, cost-effective and easy to maintain.
"At that point, problems can crop up," says Josh Hinkle, manager of network management and security at the American Heart Association. "When IT is focused on what we can do to manage our networks or our servers better, there's a plus to that. We can provide better uptime and so on. But sometimes people get too much in that mode. It becomes more about making less work for us and not so much about serving the business, which is really where they should be focused. That's a copout to the job."
And it all depends on how the organization views IT, says Jeffrey Kaplan, managing director of Thinkstrategies, an IT consultancy. "If the organization views IT simply as a utility that's best valued if it doesn't create a disruption, then the CIO may be at risk as the systems become more stable and it may be seen as a more mundane responsibility under those circumstances."
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Blog: Second Acts: Why CEOs Get Them And CIOs Don't 18 January, 2008 12:36:09
Last week's news about Howard Schultz's return to the helm of Starbucks as CEO got me thinking about second acts. They're fairly common for CEOs. A year ago, Michael Dell was called back to the executive suite to revitalize the computer maker's growth. And Charles Schwab was reinstalled as CEO in July 2004, after having stepped down from that same role just 14 months earlier, in May 2003. - +
C-Level Execs Miss The Business Model Innovation Boat 28 November, 2007 08:25:35
CEOs, SVPs and CIOs talk a good game about wanting innovation. But I think it's all talk, not much action. - +
Blog: More on Organizational Realignments and How They Affect CIOs 03 June, 2008 14:29:24
IT leaders are well-positioned to benefit from and facilitate organizational changes inside their companies, according to one executive recruiter.
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Influencing the market 04 February, 2008 10:18:57
Upheavals in the marketplace are forcing everyone to re-examine what it will take to build a vibrant ICT industry in AustraliaWhat a week! Investors are bailing out of technology stocks and several companies are seeing the need for new leadership. Things change quickly in this industry. - +
Consultancy points to its own research to justify IT outsourcing 12 December, 2007 09:01:02
IT rejects high project failure ratesBusiness executives and board members accept failed IT projects as "the norm" labelling them a "necessary evil" according to new research released yesterday by Tata Consultancy Services (TCS). - +
Users rein in IT budget increases 26 November, 2007 08:14:06
Large organisations lead the way in belt tighteningLarge organisations are pulling in the reins on IT spending growth, according to a Computer Economics survey of 125 IT decision-makers in the US and Canada. Although 66 per cent of respondents expected budget increases next year, the size of those increases -- only 2.5 per cent at the median -- were relatively conservative when compared to the rising growth rates over the past three years. - +
Peoplebank funds approved for Ambit acquisition 04 February, 2008 17:08:17
Staff numbers increase from 100 to 270Peoplebank Australia shareholders today approved $100 million in funds to complete its acquisition of Ambit in a bid to make it the number one IT&T recruitment firm in Australia. - +
NAB carves up Telstra contract in favour of IBM 21 December, 2007 14:41:21
Deal estimated to be worth more than $300 millionThe National Australia Bank (NAB) today confirmed it has inked a three year outsourcing deal with IBM Australia to manage more than 30,000 desktops.
Discover how SOA can create smarter outcomes for your business.
Attend and learn:
- How SOA is helping leading companies to become more agile
- Where you should be applying SOA processes in your company
- The top SOA implementation mistakes to avoid
Click here for more information.
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CIO Live Podcast #79: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires Part II 05 October, 2007 06:00:00
For his new book, The Outsider's Edge: The Making of Self-Made Billionaires, social researcher Brent D Taylor spent four years of intensive research investigating the psychological make-up and backgrounds of some of the world's richest men and women, including IT luminaries Bill Gates, Larry Ellison and Steve Jobs. Taylor discovered that, despite working in different industries and coming from different upbringings, they all have one thing in common -- they are all outsiders. - +
CIO Live Podcast #78: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires 28 September, 2007 17:34:25
For his new book, The Outsider's Edge: The Making of Self-Made Billionaires, social researcher Brent D Taylor spent four years of intensive research investigating the psychological make-up and backgrounds of some of the world's richest men and women, including IT luminaries Bill Gates, Larry Ellison and Steve Jobs. Taylor discovered that, despite working in different industries and coming from different upbringings, they all have one thing in common -- they are all outsiders. - +
CIO Live Podcast #77: Panasonic Speeds Up Trans-Pacific File Transfers, Part III 21 September, 2007 07:00:00
Part three in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance. - +
CIO Live Podcast #76: Panasonic Speeds Up Trans-Pacific File Transfers, Part II 14 September, 2007 07:00:00
Part two in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance. - +
CIO Live Podcast #75: Panasonic Speeds Up Trans-Pacific File Transfers, Part I 07 September, 2007 07:00:05
Part one in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance.
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Chris Hoff on Virtualization and Cloud Computing 20 November, 2008 10:55:00
Chris Hoff, chief security architect for the systems and technology division at Unisys and an advisor on the Skybox Security customer advisory board, is one of the biggest critics of virtualization security out there. Not because it isn't important - but rather because it is vital and needs to mature rapidly. - +
Cybersecurity is focus of new start-up incubator 20 November, 2008 07:19:00
Texas uni announces the Institute for Cyber Security.The University of Texas at San Antonio Tuesday announced a technology incubator aimed at fostering IT security-based start-ups within the state. - +
Dilip Sarangan on Physical Security M&A 20 November, 2008 11:18:00
Dilip Sarangan tracks physical security companies for Frost & Sullivan. He expects the industry's "need to have" products to weather the economic storm well, with the big players (now including IBM and Cisco) looking for value-priced acquisitions. - +
International Challenges in PCI Security 20 November, 2008 09:15:00
In a country that's seen many regulatory compliance challenges this decade, the headaches of PCI security tend to be analyzed from a largely American perspective. - +
PCI council sharpens oversight of security auditors 19 November, 2008 10:53:00
Quality assurance plan targets security assessors and scanning vendorsThe PCI Security Standards Council Monday unveiled a plan to sharpen oversight of the hundreds of security-service providers now authorized to evaluate merchant networks under the organization's Payment Card Industry data standards.
PGP and Ponemon Institute Unveil Inaugural Australian Data Breach Study 2008 20 November, 2008 17:34:00
Symantec Cloud Services Transform Data Centre Operations Through Proactive Management 20 November, 2008 12:06:00
Verizon Business Offers Tips to Building a Successful Unified Communications and Collaboration Plan 20 November, 2008 12:04:00
AARNet Brings 4K Digital Cinema to Australia: First 4K HD Video Signal delivered into Australia by AARNet 20 November, 2008 12:02:00
NetApp Named 2008 Citrix Ready Solution of the Year by Citrix Systems 20 November, 2008 11:33:00
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Data grids and service-oriented architecture
When choosing an SOA strategy, corporations must ensure data availability, reliability, performance and scalability. A data grid infrastructure, built with clustered caching provides a framework for improved data access that can create a competitive edge and sustain customer loyalty. Read on to discover how this can be created within your organisation.














