Today's CW story regarding CIOs' attitudes towards innovation (http://www.computerweekly.com/Articles/2009/09/29/237909/cios-are-followers-not-leaders.htm), based upon a survey carried out by Coleman Parkes for Fujitsu, makes interesting reading, particularly when read in conjunction with a recent ISACA report on the CEO's views on IT governance (www.isaca.org). The two reports are remarkably complementary.
The Fujitsu survey suggests that few CIOs regard themselves as innovators, with the majority regarding themselves as followers. Fewer than 50% of respondents reportedly were prepared to invest in technology that had yet to be proven successful elsewhere, with around one third even suggesting that nothing other than 'industry standard' technology would be implemented within their companies. Whilst caution and scepticism are essential attributes for any successful CIO, a willingness to take managed risk is also essential if real success and competitive advantage are to be achieved. So are CIOs missing a trick through allowing undue caution to temper their innovative ideas?
The ISACA survey looks at the same issue from the perspective of the CEO and Boardroom. Their findings indicate that some 40% of CEOs were sceptical about the contribution of IT to innovation with over 30% being critical about the ability or willingness of the CIO to inform the business about the innovative value of new and emerging technologies. Both surveys suggest that the current CIO priorities are based around process improvement and cost efficiencies, understandable perhaps in the current economic climate but, as Paul Parrish, UK managing director of Fujitsu Technology Solutions reportedly states, 'those that are able to harness the power of IT in the coming months will be fitter and leaner for the upturn when it inevitably comes.'.
The key message in my view is the need for enhanced regular and open communication between the CIO and the CEO. Innovation always carries risk but taking risks will always be essential if businesses are to prosper. Any risk involving technology needs to be shared between the business and IT. The final decisions on implementing innovative technology need to be taken by the business based upon fully informed input on risk and opportunity from the IT function. For the CIO to be regarded as an equal and trusted Boardroom colleague (or to aspire to Boardroom status) he or she must be prepared to lead from the front in discussions and decision making on technology innovation and not shy away from it.
The Fujitsu survey suggests that few CIOs regard themselves as innovators, with the majority regarding themselves as followers. Fewer than 50% of respondents reportedly were prepared to invest in technology that had yet to be proven successful elsewhere, with around one third even suggesting that nothing other than 'industry standard' technology would be implemented within their companies. Whilst caution and scepticism are essential attributes for any successful CIO, a willingness to take managed risk is also essential if real success and competitive advantage are to be achieved. So are CIOs missing a trick through allowing undue caution to temper their innovative ideas?
The ISACA survey looks at the same issue from the perspective of the CEO and Boardroom. Their findings indicate that some 40% of CEOs were sceptical about the contribution of IT to innovation with over 30% being critical about the ability or willingness of the CIO to inform the business about the innovative value of new and emerging technologies. Both surveys suggest that the current CIO priorities are based around process improvement and cost efficiencies, understandable perhaps in the current economic climate but, as Paul Parrish, UK managing director of Fujitsu Technology Solutions reportedly states, 'those that are able to harness the power of IT in the coming months will be fitter and leaner for the upturn when it inevitably comes.'.
The key message in my view is the need for enhanced regular and open communication between the CIO and the CEO. Innovation always carries risk but taking risks will always be essential if businesses are to prosper. Any risk involving technology needs to be shared between the business and IT. The final decisions on implementing innovative technology need to be taken by the business based upon fully informed input on risk and opportunity from the IT function. For the CIO to be regarded as an equal and trusted Boardroom colleague (or to aspire to Boardroom status) he or she must be prepared to lead from the front in discussions and decision making on technology innovation and not shy away from it.
Since IT must align with the business, its important to keep a good cummunication between CIO and CEO.