Best friend of the chief executive
Over the past few weeks, Steve Jobs' formal resignation as Apple's chief executive has been the talk of the Internet.
There has been much media comment on the announcement because it marks the end of one of the most extraordinary careers in US business history.
Some say that even though Jobs bequeaths a strong short-term outlook, the loss of his pivotal presence as chief executive may mean the stock will become even cheaper.
However, that's not the point here. Jobs founded Apple and over the decades played a central role in reshaping the personal computer, music, movie, animation and mobile-phone businesses. To me, he is a technology visionary.
Chief executives who are not technology savvy must not only focus on getting their businesses to run with productivity and cost-efficiency, but also on getting them to grow sustainably through a multiplicity of change and complexity. Chief executives who use the advancement of technology as an enabler can achieve these goals easier and quicker. So to ensure that their businesses get the most out of technology, who do chief executives turn to? Will it be their chief information officers (CIOs)?
Looking back to about 1964, the CIO was then usually called the IT director, and he reported to the chief financial officer (CFO). In that year, IBM launched its System 360 computers, which were meant to enhance the operation of entire companies, transforming them into modern operations. The problem was that the companies didn't have the knowledge or skills to acquire, deploy and manage the new computers.
To help companies maximise the potential of both these computers and information technology, IBM laid the conceptual groundwork for the role of CIO and worked with corporations to make technology an essential part of their businesses. We were calling on chief executives and telling them the person in charge of technology should report directly to them - just like the head of personnel or the CFO. Gradually, the role of CIOs has increased in importance through the PC era and during the rise of the Internet.
The early 2000s marked a turning point in the CIOs' role. They faced the challenge of expense. Organisations saw IT as a cost centre and the priority of CIOs became reducing costs. However, the fact is that with technology embedded in every facet of business, and data becoming the lifeblood of competitive advantage, the CIO's role is these days becoming more vital to businesses than ever before. The CIO's job is ultimately crucial to a company's survival. They choose the technologies that underpin a company's business strategy. Through their understanding and use of these technologies, they work with chief executives to craft the tactics that propel productivity and create entirely new businesses.
I have just launched the latest IBM 2011 Global CIO Study. More than ever, the study shows that CIOs are aligned with the business and the chief executive's agenda, and are a part of boardroom strategies. They are putting all their efforts into pursuing strategies intended to improve the quality of decision-making within their businesses.
The study also underscores the fact that CIOs and chief executives are increasingly locked in step, in the belief that technology is no longer just a workhorse for maintaining a company's operations, but is crucial to helping businesses expand, innovate and compete. Their top-three focus areas are strengthening relationships with customers, developing the skills of employees and gaining insights and intelligence from data.
The study also probes the strategies and technologies to which CIOs are now turning. Among the most striking trends is the growth of cloud computing, making information widely available and streamlined; business intelligence analytics, seeking new ways to make sense out of data and act upon it; and the game changers, mobile computing and mobile solutions, as they make information available to employees when and where they want it, open up new markets and keep businesses relevant even as market dynamics shift.
I couldn't agree more with the study - especially the fact that CIOs' priorities should align with those of their chief executives and the agendas of their businesses. We have been talking about it for years, and it looks as if it's finally happening: chief executives and CIOs are aligned in their thinking about future challenges and the critical role to be played by IT. Not surprisingly, CIOs have become the chief executive's best friend.
Parnsiree Amatayakul is managing director of IBM Thailand. Follow her articles in Hi! Managers on every third Friday of the month.
