Tag Archives: CIO

The four faces of IT


 Tother_Triumph Triumphs 2CV  Grace 1

 

The times they are a changing, and as businesses adapt to the new reality of technology driven value creation, IT departments are changing too (finally)! The scenarios that I am about to paint are not new; what has changed is the scale and ease of action.

These days almost every business function can be enhanced with cloud based information systems – from rubbish collection to retail. The business unit managers are being approached continuously by salesmen with products, and there are compelling business benefits available.  Managers can sign contracts and have working systems in place in a matter of weeks with no interaction with IT. Everything is available through the browser.

Of course problems arise through time – the cost of the system may escalate as more users are put on; the business department has to manage user names and passwords; the reports from the system are limited unless other organizational data can be added; the supplier may have regular outages; and finally the IT department may upgrade systems or security and the system stops working.

If this happens with just one business department, IT can help to resolve the issues; but when it happens everywhere, IT has real resource limitations and cannot respond effectively. This of course drives a further cycle of bypassing IT (maybe by contracting external help).

So how do we deal with this new reality? The answer is first to get on the front foot and work out between the executives what sort of IT department they want from the choices below:

  • Fixer – The business units drive their own agenda, and only occasionally take advice from IT. Often IT cannot influence the outcomes, but has to resolve issues as they arise. The IT department pours its resources into reactive capability and loses control on strategy and architecture. This is happening to many IT departments today.
  • Governor – In this approach, the IT department takes a governing role, collating a single list of technology projects, identifying interactions and pre-requisites but not holding the budgets. IT may set policies on security and service requirements and is likely to get involved in technical negotiations with suppliers. Depending on IT’s ability to influence (and the quality of its advice) this might improve the outcomes but does not deal with issues such as funding for components to tie the initiatives together.
  • Integrator – Here the organization accepts that businesses do not have the skills to procure and manage IT systems. Executives assign responsibility to various departments and ensure that they have the right competencies. For example procurement may need to develop specialist IT procurement skills; compliance would have staff who could take a close look at the technology; audit may verify supplier performance; and IT would take on integration, service desk and other functions. IT is just one of the team with certain key accountabilities. In this model IT has a clear (but limited) accountability and may have to release resources into other parts of the organization.
  • Orchestrator – In this (somewhat scary) model, IT acts like the conductor of the orchestra, ensuring that all components are identified and actioned. The CIO takes accountability and pulls together all the necessary components in a program approach. The IT department has to be agile to meet the expectations of the business and the CIO needs hefty support to ensure that the business department is serious about delivering on benefits.

The key to success in this whole debate is to decide – then do. If you just drift into a particular scenario, it may be very difficult to change to another model.

So are you ready to have the discussion with your executive on which face of IT they want to see?