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chapter 3
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chapter 4 chapter 5
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chapter 6
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chapter 7 chapter 8 Index
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Preface
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Anyone working in information technology today feels the opportunities for creating and enabling lasting value, and the CIO helps define those opportunities so that they can be turned into realities. That s what this book is about. Humanity has discovered an evolutionary tool that allows us to realize our true potential intellectually, artistically, socially, and above all, creatively. But we must be circumspect as we explore the uses of this new tool that works as an extension of our own minds. Living as we do on the edge of an evolutionary horizon, we must learn to respect the two native forces that have pulled human creativity in opposite directions since the beginning: (1) the drive to understand more about ourselves and our world, and (2) the desire for safety and security. Some part of us craves the entirely new; another part longs to be safe and is uncomfortable with change. No senior executive feels the disjointed pull of these two forces more than the chief information officer,1 who seeks to create new frontiers of strategic information technology value for the enterprise while working in an environment of service and stewardship for other people s interests. New strategic frontiers demand that the CIO take bold, decisive risks as new technologies offer competitive opportunities. Service and stewardship responsibilities demand that the CIO also take care of the day-to-day needs of people that depend on more basic information technology resources to perform what the enterprise requires of them. Other forces distinguish the world of the CIO from executive team peers. More than any other member of the enterprise, the information technology professional works with products and services built according to designs that represent the most current understanding of the ways our
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preface
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world is organized. While people from other functional areas of the enterprise work within organizational structures marginally evolved from the beginning of the industrial age, IT organizations embody the principles that underlie information technology products and services selfreferencing, chaotic, morphogenic systems. The CIO must work to reconcile IT s more mature, inclusive perspective on the enterprise with the traditional views of peers that prefer the illusory safety and security of departmental silos that use command and control management policies. Then there s the matter of the emerging role of the CIO in terms of the myriad expectations of the many people throughout the enterprise, which often boils down to a simple three-word question of focus: Business or technology This book acknowledges and addresses these disruptive forces by incorporating a few basic premises in each chapter. Premise 1: The business of the IT organization is technology, and the business of the CIO is the business of the enterprise. As such, the best practice CIO works and makes decisions in a realm of strategy, customer value creation, cost and performance management, and outsourcing partnerships while building and maintaining an IT organization that can develop and manage enterprise technology that enables strategy. Premise 2: As a new executive role with an evolving set of responsibilities and expectations, CIOs cannot prepare themselves to learn what they need to know about the business of the enterprise without the help of non-IT experts. In addition to the chapters written by experienced, practicing CIOs acknowledged for their excellence, this book includes chapters written by performance management, accounting, and customer relationship management experts familiar with leveraging IT value. Premise 3: The CIO is an investor of enterprise resources accountable for realizing a return on those investments. This premise acknowledges that the rest of the executive team depends on the CIO s specialized understanding and insights of information technology value opportunities. All the chapters discuss how the CIO can realize a return on IT investments including the investment of IT s many intangible resources. Premise 4: All enterprises are unique, and their IT organizations must align to the specific needs of the enterprise. Each chapter includes considerations for small, medium, and large enterprises across all sectors. Inherent in this premise is the understanding that all enterprises have one thing in
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