Friday, 26 September 2008

Gung-ho for CIOs that have to go global

In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment (Charles Darwin, 19th century naturalist)

An increasing number of CIOs are under fire in the boardroom when asked how the IT function will perform when the enterprise goes global. In particular CIOs working in industries such as health care, telecommunications or banking worked hard to keep up with the going global vision of their organizations. Globalization does not only affect the way of running the enterprise, it has a fundamental impact on the way IT has to be managed and governed.

When companies decide to develop their business on a global scale, technology either is enabler or an inhibitor in executing the expansion strategies. The new breed of CIO is expected to manage an effective IT function and assume the role of business visionary when his peers are in the pursuit of conquering new territories
Especially in times of recession, the CIO will have to become the next best friend of the CFO and COO. A financial downturn could hurt the IT fundraising if IT executives are not responsive enough to this changing business context.

The “Adaptive” CIO however has a clear vision on running technology in a borderless world. This new style IT executive understands that running global distribution channels and operations on different continents requires an agile IT. Combining business savviness with a holistic view on running IT is what differentiates our adaptive CIO from his less fit peers.

One: Develop an Enterprise IT strategy

An Enterprise IT strategy builds the roadmap towards a flexible and “plug and play” IT architecture. The Enterprise IT platform has web-oriented features and offers the business an extended portfolio of shared services and portal-like facilities.
Doing business in a flat world necessitates a CIO with a holistic view on the supply or value chain of his organization. A global operating model requires strong IT foundations with a capacity to support enterprise wide processes. Globalization provides the opportunity to centralize infrastructure and operations. A global service desk supports enterprise-wide business applications like ERP, CRM, SCM and eBusiness platforms. The global operating model provides a motive for the adaptive CIO to review the Enterprise architecture and implement application and messaging standards in a continuous effort to align business and IT strategies.

Two: Set up an intelligent governance framework

A heuristic perspective on governance balances the cost of running IT with productivity improvements and business continuity. Intelligent governance aligns the IT governance archetype with the evolving operating model. The finance savvy CIO understands that strategic IT investments have to be seen in a enterprise context. When cost reductions become the prevailing imperative, a differentiated approach to IT funding will safeguard the enterprise from taking the wrong technology decisions. Intelligent governance enables organizations to plan and monitor IT investments across the enterprise instead of managing silos. The focus of the adaptive CIO is on value adding IT initiatives that help to streamline cross-border operations and facilitate the roll-out of web-oriented distribution models.

Three: Develop and attract Hybrid competences

Hybrids have the best of both worlds and combine business competences with technology savviness. Hybrids in IT means that the CIO attracts lateral thinkers, communicators and people with a mixed business/IT background. They do not isolate themselves from the business crowd and have the natural flair to mix and mingle with non-IT peers. The hybrid employee assumes a liaison function in the demand side of the IT organization and plays the role of relationship builders. Our business/IT crossbreds thrive ideally in a context of multi-sourcing and intensive vendor management as they adapt swiftly to a new ecosystem. The next generation of IT employees will infuse the IT organization with business-related competences preparing it for a more strategic role in the enterprise.

Four: Roll out a Master Information Plan

Product development, service management and decision making will become more effective under the condition that there is Just-In-Time Intelligence. Web 2.0 redefined the way consumers act and interact with the enterprise. Clever IT executives see the increasing importance of enterprise-wide information as a way to deploy a Master Information Plan. This blueprint goes beyond the simple function of storing data and sees Enterprise Information Architecture in the perspective of the collective intelligence and content sharing. Enterprise Content Management systems combined with web 2.0 collaboration technologies prepare the organization for the looming challenges of the digital era. The Intranet serves as information portal with aggregation and localization features. Employees can easily share, publish and comment upon information that goes around the enterprise. Collaboration platforms facilitate cross-border community building and allow the enterprise to manage the collective data to improve customer intimacy and decision making.

Five: stay the fittest of the pack
The role of the CIO will evolve from IT executive to business executive. Making this quantum leap will require IT leaders to develop a holistic approach to managing IT in a globalized business landscape.
Adaptive IT executives adopt an enterprise view on IT governance, IT demand and supply and align these with the global supply chains and value chains. The new breed of CIO builds up the required agility by aligning systems, tools and processes across all intercontinental business units.
Being responsive to market and industry changes is one of the key characteristics of this next generation CIO. It will make IT leaders forward thinking and opportunity driven. The new breed of CIO are those that can adapt themselves best to this global environment.