Q2 2010 Intelligence Quarterly: Transformational IT and the CIO 3.0

One of the things I continue to see at the organizations I visit is that business demands are increasingly outpacing IT’s ability to deliver. Often, technology benefits get recorded in the business units while IT becomes a cost center under increased scrutiny. Instead of joining forces, the two areas find themselves at odds.

In the new normal, however, the role and impact of IT is changing. Consider when the role of the CIO first gained acceptance. I refer to this period as the era of CIO 1.0. Around the time that ERP systems were put in place, the CIO 1.0 became relevant due to the size and the importance of the ERP investment. Take Nokia, for example, who at its peak invested US$100 million annually into the deployment of its ERP systems.

The next wave was the CIO 2.0, who increased focus on gaining competitive advantage through incremental im-provement of core business processes and moved away from the earlier model where “one size fits all.” The CIO 2.0 began to add value to core segments of the business, even taking part in business planning and shifting IT’s status from that of a cost center to a value creator and a core business enabler. The CIO 2.0 began closing the gap between business and IT.

Today, in the new normal, the CIO 3.0 has become a business leader with a seat in the boardroom. The CIO 3.0 is playing a key role in the planning, development and execution of companywide strategy because – within smart organizations – intelligence fuels every business decision.

While the CIO 1.0 started to optimize the business, the CIO 2.0 looked at how to realize its full potential. Now, in the new normal, the CIO 3.0 will also help transform the business to meet the needs of the future.

I see three key trends that are further affecting the CIO 3.0:

  1. The focus on the customer is increasing.
  2. The IT “sandbox” becomes more and more powerful.
  3. Real-time information is being used to make operational decisions.

These trends have one thing in common. To be successful in the new normal, IT needs to better capitalize on what could become your organization’s most valuable asset: data. In the most recent issue of Intelligence Quarterly, we’ve highlighted IT’s role in helping organizations lik Briggs & Stratton, Fraport AG and the Belgium Federal Public Service Economy leverage data and analytics to create value, mitigate risk and optimize operations. You can download a full pdf of the magazine today.

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