The Top IS Job

Chapter 2
Information Systems Management In
Practice 7E
McNurlin & Sprague
PowerPoints prepared by Michael Matthew
Visiting Lecturer, GACC, Macquarie University – Sydney Australia
1
 Chapter 2
The responsibilities of the head of the IS function now go far beyond •
operating highly efficient “production programming shops.” These
executives must understand the goals of the enterprise and work in
partnership with line executives to deploy IT to attain the organization’s
goals

This lecture / chapter discusses the top IS executive’s job, looking first at •
the top job itself by summarizing six major responsibilities, and then
exploring several ways the information systems function is evolving in
organizations
The SABRE system, Lifescan, BP, Aetna Life and Casualty, Duke Energy •
International, Wal-Mart Vs. Kmart, AXA Financial, and Rexam provide
examples of how the role of information systems management is changing

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 Today’s Lecture
Introduction •

?Where is the IS Organization headed •

The Escalating Benefits of Information Technology –
’Traditional Functions Are Being ‘Nibbled Away –
New Roles Are Emerging –
’Towards ‘IS Lite –

3
 .Today’s Lecture cont
The CIO’s Responsibilities •
CIO’s Roles in Three Eras –
Leading –
Creating a Vision by Understanding the Business •
Governing –
Establishing an IS Governance Structure •
Investing –
Shaping the IT Portfolio •
Managing –
Establishing Credibility and Fostering Change •

The Office of the CIO •

?Whither CIOs •
4
5
 Introduction
Management of IT has changed drastically in the past 50 •
years
:Early days = manage the technology •
Get it to work –
Keep it running –
Reduce cost of doing business –

Then = manage the information resources •

Support (management) decision making –
Delivering information when and where it was needed •

Now = IT is pervasive and is a mandatory link between •

enterprises
6
 Introduction cont.
• Responsibilities of the head of IS now go far
beyond operating highly efficient ‘production
programming shops’
• These executives are now part of top
management and help form the goals of the
enterprise in partnership with the CEO, CFO
and other members of top management

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Where Is The IS Organization Headed?
• The Escalating Benefits of Information Technology
– Kenneth Primozic, Edward Primozic, and Joe
Leben introduce the notion of “Waves of
Innovation” which they define as how IT is used by
industries and enterprises.
• There are five Waves of Innovation (Figure 2-1):
5. Reaching the consumer
6. Enhancing executive decision making
7. Enhancing products and services
……………………………………………………………………………………

2. Leveraging investments
8 3. Reducing cost
Where Is the IS Organization Headed?
Escalating Benefits of IT

9
 Waves of Innovation
- Below the line (Saving $)

Wave 1: Reducing costs •

Began in the ’60s –
Focused on increasing the productivity of –
individuals and business areas by e.g. automating
manual processes

Wave 2: Leveraging Investments •

Began in the ’70s –
Concentrated on more effective use of corporate –
assets
.Systems justified on ROI, cash flow etc –
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 Waves of Innovation
- Above the line (Making $)

Wave 3: Enhancing Products & Services •

Began in the ’80s –
Attention shifted to using IT to produce revenue by gaining strategic –
advantage or creating entirely new businesses

Wave 4: Enhancing Executive Decision Making •

Began in the late ’80s –
Changed fundamental structure of organizations –
Created real-time business management systems –

Waves 1 & 2 = could be done at ‘any time’ (and are still being •
done!)

Waves 3 & 4 = must be implemented once an industry leader has •

set a precedent
Companies that don’t do = cease to be competitive –
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 Waves of Innovation
.- Above the line (Making $) cont

Wave 5: Reaching the Consumer •

Began in the ’90s –
Uses IT to communicate directly with consumers leading to –
:new
Marketing •
Distribution, and •
Service strategies •
Changes the rules of competition –

Management must be involved in guiding IT use once •

’you ‘cross the line
Management must steer the company in the new (evolved) –
business environment
’Not the ‘techies •
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The SABRE system (American Airlines)
Case example: ‘Waves of Innovation’

• Waves 1 and 2
– SABRE built to reduce costs of making airline
seat reservations

• Wave 3
– System expanded so it could be used directly
by travel agents

• Wave 4
– System expanded to include hotels and rental
cars through alliances with these suppliers
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The SABRE system (American Airlines)
Case example: ‘Waves of Innovation’ cont.

• Wave 5
American extended their reach to the consumer:
– Introduced EAASY SABRE that enabled consumers direct
access from their PCs
– AAdvantage – frequent flyer program
– Enhanced their Wave 5 connections to consumers via the Web
(and mobiles?)
– Targeted its most profitable customers = Frequent Flyers
• Marketing strategy including ‘distressed inventory’ (the unsold
seats)
• Note: this example also illustrates that as the benefits of IT
increase, the importance of executive guidance also increases
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 Traditional Functions Are Being
Nibbled Away
• IT has become an essential piece of business strategy
• Not keeping up in IT may even mean going out of
business
• The job has become too large for one group
• While the growing importance of IT is causing the IS
Department’s work to expand into new areas of
responsibility, management is realizing that the traditional
and more operational portions of the job do not have to be
performed by the IS department
– Particularly ‘centralized’
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 Traditional Functions Are Being
Nibbled Away cont.
• The traditional set of responsibilities for IS has
included:
1. Managing operations of data centers, remote
systems, and networks
2. Managing corporate data
3. Performing systems analysis and design, and
constructing new systems
4. Systems planning
5. Identifying opportunities for new systems
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 Traditional Functions Are Being
Nibbled Away (Figure 2-2)

• The traditional functions still need to be performed but the following

trends are moving their performance out of the IS department and
into other parts of the organization or to other enterprises:
1. Distributed systems
– Software applications migrating to user areas
2. Ever more knowledgeable users have taken on increased IS
responsibilities
3. Better application packages
– Less need for ‘armies’ of programmers, analysts etc.
4. Outsourcing
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 New Roles are Emerging
• (Another way to look at it:) IS is not a single monolithic
organization, but rather a cluster of four functions (Fig. 2-3):
1. Run operations
2. Develop systems
3. Develop architecture
4. Identify business requirements
• The ‘Squeeze’ on Traditional IS Activities (Figure 2-4):
– Growing External Services
– Growing Capabilities of Users
• ‘Future’ Roles for IS (Figure 2-5):
– Broker
– Systems and Information Architecture
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21
22
 Toward IS Lite
(another ‘view’)
• IS started ‘centralised’ and evolved into a ‘federal model’:
– Some things (standards, operations) = centralised
– Others (application development) = dispersed locally to best meet local
needs

• To make the federal model work better, companies are

shifting attention from roles to processes
• The IS department can be viewed as managing three
overall processes (Figure 2-6):
– Driving innovation
– Managing change
– Supporting infrastructure
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LifeScan
Case example: The ‘Federal’ Model

• Johnson and Johnson subsidiary

• New CIO = agenda to align the department with the business
• Focussed on execution and measurement to gain credibility
with the business units
• Strong project management and not allow scope creep
– Emphasis on staff with these skills
• Uses Johnson and Johnson Group ‘stuff’ combined with local
(LifeScan) ‘culture’
• Centralization of policies, procedures etc.
• Local implementation with all projects business led
25 – Moves ownership of systems to the business people
 The CIO’s Responsibilities
In line with the evolution of IS departments, the emphasis of the top •
job has changed
Infrastructure = 86 –
helping formulate corporate policy = 89 –
IT as a catalyst for revamping the way enterprises worked = 92 –
revamp business operations using IT continued with the Internet = 98 –
(customers +)
the ‘technical member’ of top management = 02 –
a cost and risk based approach Vs. “let’s get into e-commerce = 04 –
”…fast

Today the cost emphasis remains •

Outsourcing continues to grow (amid controversy) –
$$ CIOs are expected to do much more with not much more –

:Also = under pressure •

To implement protective measures –
New financial reporting e.g. Sarbanes Oxley –
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!!Keep the IT innovations coming –
 CIO Responsibilities — History

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 . CIO Responsibilities — History cont
The Mainframe Era •
Predominated 1960s – early ’80s –
Role of DP / IS Manager = operational manager of a –
specialist function

Distributed Era •
End of ’70s as PCs became commonplace –
LANS and WANS linking computers –
:Took on 4 more roles –
Organizational Designer •
Technology Advisor •
Technology Architect •
Informed Buyer •
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 .CIO Responsibilities — History cont
The Web Era •
Started in the mid-1990s for some –
Arose from the emergence of the Internet, –
and esp. the Web as a business tool
Era is still in its ‘infancy’ but add to the CIO’s –
‘job’ the role of business visionary

Relationship between CEO and CIO vary •

along a wide spectrum
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 Four Aspects of the CIO role

Leading: Creating a vision by .1

understanding the business
Governing: Establishing an IS .2
Governance structure
Investing: Shaping the IT portfolio .3
Managing: Fostering change .4

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 1. Leading: Creating a Vision by
Understanding the Business

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 1. Leading: Creating a Vision by Understanding
the Business

 There are seven approaches CIOs are using to

understand the business and its environment:
1. Encourage project teams to study the
marketplace
2. Concentrate on lines of business
3. Sponsor weekly briefings
4. Attend industry meetings with line executives
5. Read industry publications
6. Hold informal listening sessions
32 7. Become a “partner” with a line executive
1.A Understand the Business:
Encourage Project Teams to Study the Marketplace

• Gather the following information about the

company and its industry:
– Current industry environment
– Business goals and objectives
– Major practices of competitors
– Pertinent government regulations
– The inputs, outputs, and resources of the firm

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1.B Understand the Business:
Concentrate on Lines of Business

• It is recommended to ask the following questions

about each line of business:
1. Are we organized to serve that line of business?
2. Do we have an account manager in IS who has
responsibility for that line of business?
3. Do we have someone within that line of business who
oversees IT activity and talks the business language?
4. Do we have a sponsor in the line of business?
5. Do we have the attention of their management?
6. Does the line of business offer an opportunity to use
34 systems in new ways?
 1.C Understand the Business:
Sponsor Weekly Briefings

• To understand the business, one needs to

understand the marketplace

• By sponsoring short presentations by the people

closest to a business, IS management can help
fix the problem of employees not being given
exposure to the marketplace without cutting into
working time too greatly

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1.D Understand the Business:
Attend Industry Meetings with Line Executives

• Attending meetings with a line executive can be

even more enlightening because he or she can
explain what the company is or is not doing in
areas discussed by the speakers

• It is also likely to foster new friendships

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1.E Understand the Business:
Read Industry Publications

• News publications provide information on

new products, current issues, company
changes, and so on

• They provide better analyses of industry

trends, discussions of ongoing research, and
projections about the future

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 1.F Understand the Business:
Hold Informal Listening Sessions

• Employees learn a lot by listening to each

other’s needs

• Meetings are held in a setting that is not

charged with tension, participation is
voluntary, and their purpose is to “just
chat”

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1.G Understand the Business:
Partner with a Line Executive

• The Society for Information Management

presents an award each year to honor an IS
executive business team who have achieved
significant business results through their
alliance

• It reinforces partnering which is needed to

successfully guide and deploy IT today

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 THE ‘KEY’

• UNDERSTAND THE BUSINESS

• TALK TO PEOPLE

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 1.2 Leading: Creating a Vision of the
Future and Selling It

• IS executives are no longer reactive, providing

only support
• They manage some of the most important tools
for influencing the firm’s future
• They are becoming more “proactive” by helping to
create a vision of the firm’s future and its use of IT
and selling those ideas to others
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 1.2 Leading: Creating a Vision of the
Future and Selling It:
What is a Vision?

• It is a statement of how someone wants the future to be or

believes it will be
• “We will put a man on the moon and return him safely to earth,
by the end of the decade” – JFK, early 1960s
• Beath and Ives present several corporate visions, e.g.:
– Otis Elevator
• “Any salesperson can completely order an elevator in a day”

– Rittenhouse Homes
• “Customers can get a house designed and built from a retail store”

• Once a vision is in hand, then a strategy can be formulated on

how to bring the vision into being
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 1.2 Leading: Creating a Vision of the
Future and Selling It:
Why develop a Vision?
• A vision of a desirable future can provide stability
when it sets a direction for an organization

– Today most corporate visions have an IT

underpinning – leveraging the Internet for
business purposes

– That vision sets their direction

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BP
Case example: Leading - Vision
• Main activities = exploration and production
of crude oil and natural gas
• The Business is in the Business Units
– 150 business units in 100 countries
 Each have their own balance sheet and performance
contract

– HQ must convince the business units of the

wisdom of BP-wide practices
– Overarching this distribution of power is a set of
group-wide policies based on shared core values
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BP
Case example: Leading – Vision cont.

• Digital Business (DB) Underpins Transformation

– 1999 = rare companywide mandate for a common operating
environment (COE)
– Early 2000 = formed Digital Business
 Moved IT out of the beleaguered role of technology provider into
a strategy-creation role
 Delivered overarching strategy, enterprise infrastructure and
projects and standards while supporting differentiated service
offerings driven by the business streams
• DB Strategy and Chief of Staff
• DB Chief Technology Office
• DB Projects
45
• DB Operations
BP
Case example: Leading – Vision cont.
• Living on the Web
– Moving processes and systems to the Web and simplifying both at the
same time
• Socializing Technical Directions
– Socialize the idea of a new common good to the point where people
accept it
– Technical choices are now made through business-based networks of
experts
• Going Forward: Foster Learning and Focus on Explanation
– Major challenge = fostering learning
– Real leverage comes from the new value a new system opens up
– Bright people have been attracted to DB because it is involved in the
46 most important conversion: where BP is going digitally
 1.2 Leading: Creating a Vision of the
Future and Selling It:
Encouraging Champions of IT Projects
• A champion is someone with a vision who gets it
implemented by obtaining the funding, pushing the
project over hurdles, putting his or her reputation on the
line, and taking the risk of the project
• The first step in encouraging champions is to find them
(they can’t be ‘appointed’!)
– They are opinion leaders, and they have a reputation for
creative ideas or being involved with innovations
– They have developed strong ties to others in their
organization, and they command respect within the firm
– They have the organizational power to get strategic
47 innovations implemented
 1. Leading: Creating a Vision of the
Future and Selling It:
Encouraging Champions of IT Projects cont.

Information systems champions need three

things from IS Management:

1. They Need Information:

• Champions need information, facts, and
expertise for persuading others that the
technology will work
• Information systems people can help them find
the information they are lacking

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 1. Leading: Creating a Vision of the
Future and Selling It:
Encouraging Champions of IT Projects cont.
2. They Need Resources:
• Giving champions “free” staff time is especially
helpful during the evaluation and persuading
portions of a project
• Champions are likely to need material resources,
such as hardware and software

3. They Need Support:

• Champions need people who approve of what
49 they are doing and give legitimacy to their projects
Aetna Life and Casualty
Case example: ‘Champions’

• Financial services company (employee benefit

and pension programs)
• Much of their IT work is decentralised,
therefore the ‘Corporate Admn. Department’
focuses on 3 functions they call:
– Plan
– Build
– Run

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Aetna Life and Casualty
Case example: ‘Champions’ cont.

• They seek out ‘Business Champions’ who

think a technology might solve their business
problem(s)
• Extensive use of:
– Pilot Projects
– Steering Committees

• Challenges; especially making a future

technology credible to people today has been
one hurdle
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Governing: .2
Establishing an IS Governance Structure
The term ‘Governance’ has become prominent in all •
.areas of business including IT
IT Governance •
The assignment of decision rights and the accountability“ –
”framework to encourage desirable behavior in the use of IT
Governance differs from management in that •
Governance is about deciding who makes decisions –
whereas
Management is about making decisions once decision rights –
have been assigned
Numerous business scandals (U.S. – Enron, Global •
Crossing etc.; Australia – HIH) have prompted the
increased interest in this area
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Governing: .2
.Establishing an IS Governance Structure cont

Governance’ has become more important in‘ •

the IS world because IT expenditures have
become so large and diverse that
management has had to find a way to bring
order to all the decision making
Centralizing all IT decisions is not a solution •
All business units and local employees need a –
voice in the decisions to tailor their business to the
local culture and customers
Striking such a balance is a major IS emphasis –
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Governing: .2
.Establishing an IS Governance Structure cont

Assigning Decision Rights (Figure 2-9) •

Six governance styles (the rows) –
A business monarchy is where C-level executives .1
(CIO..) hold the right to make decisions
IT monarchy = where IT executives hold the right to .2
make decisions
Feudal is where business unit leaders (or delegates) .3
have decision or input rights
Federal means that the rights are shared by C-level .4
executives and one other tier of the business hierarchy
A duopoly is where one IT group and one business .5
group share a right
Anarchy is where individual process owners or end .6
users hold a right
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Governing: .2
.Establishing an IS Governance Structure cont

Assigning Decision Rights (Figure 2-9) •

Five decision areas (the columns) –
IT principles are high-level statements about how IT .1
will be used to create business value
IT infrastructure strategies state the approach for .2
building shared and standard IT services across the
enterprise
IT architecture states the technical choices that will .3
meet business needs
Business application needs is where the business .4
defines its application needs
IT investment and prioritisation defines the process .5
for moving IT-based investments through justification,
approval and accountability
55
 Governing: .2
.Establishing an IS Governance Structure cont

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Duke Energy International
Case example: IS Governance

US HQ but operates all over, esp. Latin America – •

manages a diverse portfolio of natural gas and
electric supply, delivery, and trading businesses
Product and service innovation combined with speed and –
flexibility are key drivers

IT Governance is based on Principles and •

Relationships
:Principles in managing Information Management (IM) 8 –
Agree on the reason for being .1
Have a vision for IM .2
Put a clear organizational design in place .3
Implement successful IT governance .4
Implement demand management .5
Design useful reporting information flows .6
Manage business-IM value relationships .7
57 Implement global collaborative networks .8
Duke Energy International
.Case example: IS Governance cont

:Regional CIOs follow these guidelines •

I will involve others if the consequences of my –
actions affect others
I will not involve others if it just affects me –
I will inform others when the consequences of my –
actions will be of benefit to others
Aims to foster relationships with the •
:business which
Increase nimbleness –
Help identify opportunities (save costs) –
58 Lead to innovation –
Investing: .3
Shaping the IT Portfolio
IT investments are large and important to •
company success
How to make such investments is getting –
increased attention
Business executives can no longer “blame •
CIOs” for poor IT investments
CIOs can only implement good systems –
They are not responsible for changing business –
practices to take advantage of those systems
!the job of line executives = •
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Investing: .3
Shaping the IT Portfolio – A Strategic View of Making IT Investments

Intense competition in ‘non-regulated’ •

industries forced executives in these to
innovate
By investing in IT –
By improving their business processes, and –
By offering new products and services –
These innovations, in turn, increased •
productivity
Virtuous circle (Figure 2-10) –
Competition leads to innovation, which leads to •
productivity increases
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61
Investing: .3
.Shaping the IT Portfolio – A Strategic View of Making IT Investments cont

Sequencing and timing IT investments •

Companies that reaped the highest –
productivity generally sequenced their IT
investments so that new ones built on
existing ones
Timing is also important –
Rush in’ only when it advances company‘ •
goals, builds on strengths and cannot be easily
replicated by competitors
Everybody is doing it’ = not a good reason‘ •
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 Wal-Mart Vs. Kmart
Case example: Sequencing and timing IT investments
Wal-mart •
First installed systems to automate the flow of products in its –
internal supply chain
Then = turned outward to suppliers co-ordinating its own –
operations with theirs
Then turned to customers to better plan its merchandising –
mix and replenishment
Last’ = data warehouse‘ –

Kmart = did not get the sequence right •

First = used IT to target its marketing promotions Vs. –
investing in supply chain
As a result – increase in demand from successful promotions –
could not be met due to problems getting products into stores
$$$$ Lost sales and –
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Investing: .3
Shaping the IT Portfolio – A Strategic View of Making IT Investments cont
.

Complementing IT investments •
IT investments do not reap anticipated –
results until accompanying management
practices change to take advantage of
potentially better ways of working

NOTE: IT is not the only contributor to –

increased productivity

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Investing: .3
Shaping the IT Portfolio – A Tactical View of Making IT Investments

Much attention has been placed on shaping •

the IT portfolio as business executives seek
to maximize the business value of their IT
investments

Most companies have far more opportunities •

than they can fund
Must find a way to prioritize the possibilities to best –
support their business’ strategic objectives
Prioritization 
”Doing more with less“ 
65
AXA Financial
Case example: Prioritizing projects
AXA Group = global financial services •
organization with 140,000 employees

Introduced a governance process to instill •

more efficient management controls
Key principle = not all projects and investments –
are created equally
Each one’s merit depends on its economics, not on •
executives’ emotional attachment to it or other non
financial factors

66
AXA Financial
.Case example: Prioritizing projects cont
Introducing a New Methodology •
The Prioritization Process •
Winnowing the Wish List –
Selecting Business Objectives –
Prioritizing the Objectives –
Ranking Projects Using the Objectives –
Funding the Projects –
:The process uses 4 filters •
The EVP’s wish list filter .1
The must-have/should-have filter .2
The UMT prioritization filter, and .3
The business case filter .4
The result is a list of projects that can be funded •

Benefits of the Project Prioritization Process •

Future Plans •

67
Investing: .3
. Shaping the IT Portfolio cont

Benefits Come More From the Discussions Than the •

Prioritizations
When the discussions are structured, focused and well moderated, –
the participants better understand the business goals, better
support others and other business units and are more committed
:Leads to –
Healthier teamwork •
Better decision processes, and •
Better definitions of projects •

Put Projects into Categories Where They Are Comparable •

Once defined, projects belong in different categories and thus –
require different treatment
E.g. R&D projects can’t generate immediate tangible benefits •
Have a minimum $ - projects below this should be funded from •
discretionary budget

68
Investing: .3
. Shaping the IT Portfolio cont
Address Project Risks •
Risk that project will fail .1
Need mitigation strategies and include cost thereof in the •
project cost
Risk of not doing the project .2
E.g. Virus protection •
Risk that it is the wrong project for what is trying to be .3
achieved

Prioritize Quarterly, and Apportion Your Budget •

Accordingly
Not wise to close the approved list of projects for a long –
time
Track projects and if significant deviations = consider –
project costs, risks and benefits
Be Consistent •
69
Managing: .4
Establishing Credibility and Fostering Change
CIOs are in the change business •
Information systems bring about change •
BUT – before a CIO and the IS •
organization will be heard as a voice for
change, the must be viewed as being
successful and reliable
To foster change, a CIO must establish •
and then maintain the credibility of the
IS organization
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Managing: .4
Establishing Credibility
The first job of IS management is to get the “today” •
operation in shape
Until that task is accomplished, CIOs will have little credibility –
with other top management
:Managing “today” includes •
Computer operations –
Technical support (including networks) –
The help desk, and –
Maintenance and enhancement of existing systems –
Delivery oriented with a high level of service •
Some = outsource parts •

Once you have “today” working well – they will listen to •

”you re “tomorrow
71
Managing: .4
Fostering Change
Techies’ presume a technically elegant‘ •
system is a successful one
Not so. Many technically sound systems have –
turned into implementation failures because the
people side of the system was not handled
correctly
IT is all about managing change •
New systems require changing how work is done –
Focusing on the technical aspects is only ‘half’ the –
job. The other job is change management
72
Managing: .4
. Fostering Change cont

People resist change, especially •

technological change
:May react in several ways •
Deny, distort or delude –

:ODR (and others) methodology •

Sponsor –
Change agent –
Target –
73
Managing: .4
. Fostering Change cont

Working across Organizational Lines •

CIOs now find that systems they implement –
affect people outside their firm
Supply side = fewer suppliers but deeper •
relationships
Customer side = need buy-in to building / •
using inter-business systems

74
REXAM
Case example: Working across organizational lines

One of the world’s top 5 consumer packaging •

companies and the world’s top drink can maker
Rethinking Interactions with Customers •
Initial doubts Vs. “If we can demonstrate value to them they –
”will (use it)
Benefits of the Project Prioritization Process –
Phase 1: CRM Made Simple •
Testing the System with Customers •
Phase 2: Knock Customer’s Socks Off •
!’Competitive advantage? – They’ll ‘never leave –
The CIO’s Role •
The Steering Committee’s Role •
75
 REXAM
.Case example: Working across organizational lines cont

Rexam case illustrates a number of points •

:about the CIO’s current role
CIOs are working outside as much as inside .1
these days
They are working in concert with their peers in .2
the company in selling and implementing their
visions
To stay ahead they need to keep their staffs .3
experimenting with new technologies
Selling the vision occurs one customer, supplier .4
or executive at a time
Need to know how ‘IT ready’ a customer, supplier, –
executive, department or group is

76
 ALSO

 UNDERSTAND THE BUSINESS

 TALK TO PEOPLE

77
 ?The Office of the CIO
Some believe the office of the CIO is so broad it should be •
handled by a team
:’Four ‘positions •
Chief Information Officer .1
Heads IS and works with top management, customers and suppliers –
Chief Technology Officer .2
Heads IT planning, which involves architecture and exploration of –
new technologies
Chief Operations Officer .3
Heads day-to-day IS operations –
Chief Project Officer .4
Oversees all projects and project managers –

IT is so critical to enterprise success and the know-how •

needed to run it so deep and wide = management needs to
become a team effort

78
 ?Whither CIOs
Different periods of recent history have •
seen executives with different backgrounds
”“running the show
Manufacturing = in the early 1900s –
Sales and Marketing – 30s to 50s –
Finance – 70s to 90s –
Problems and scandals •
Future – perhaps now CIOs have the most –
appropriate backgrounds to run companies

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 Conclusion
• IT decision making must be ‘shared’ - The main
responsibility for managing the use of IT needs to pass to
the line, while the management of the IT infrastructure is
retained by the IS group
• It is reflected in the following saying:
1. “We used to do it to them”- IS required end users to
obey strict rules for getting changes made to systems,
submitting job requests, etc.
2. “Next, we did it for them”-IS moved to taking a service
orientation
3. “Now, we do it with them”-which reflects “partnering”
4. “We are moving toward teaching them how to do it
80 themselves”
 Conclusion cont.

• To achieve this transformation, CIOs must play a

leadership role in their enterprise and develop
partnerships with senior management, internal
and external customers, and suppliers

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