Chapter 2: The Top IS Job

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Chapter 2 The Top IS Job
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Introduction

• Role of IT is constantly changing.
• 1. Handle manual information more quickly and
  efficiently.
• 2. Manage work better.
• 3. Now used throughout organization.

• IT Information Technology
• IS IT, People, and the Organization that
  manages IT and People

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Some Observations

• Escalating Benefits of IT

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Some Observations
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• Roles according to Cox
• Running computers and networks
• Maintaining, designing, and developing systems
• Develop architecture
• Define what the business needs from IT.

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Some Observations
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• New Roles
• Broker
• Systems and Information Architecture

• IS Lite
• Introduces a federal model a move from
  centralized to decentralized
• a. Central standards and operations
• b. Decentralized application development for
  business units (ex Web site development in
  companies)
• 3 Process
• 1. Driving Innovation
• 2. Managing Change
• 3. Supporting Infrastructure

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Driving Innovation
Managing Change
Supporting Infrastructure
Supply
Demand

• Decentralized
• Localized
• Tailor services to needs

• Centralized
• Economies of Scale
• Ex Networks, Databases

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The CIOs Responsibilities

• CIOs (Chief Information Officer) roles are
  constantly changing as technology continues to
  evolve
• Example IS jobs evolved tremendously over the
  printing of the seven version of our text book
• 1986 IS executive were architects of the IT
  infrastructure
• 1989 focus of IS jobs shifted toward addressing
  business
• issues
• 1992 levels of responsibility increased
  drastically and
• companies looked for IS executives
  with management
• experience (CIO positioned formed)
• 1998 Internet expanded CIOs horizon beyond
  company
• boundaries and out to potential
  customers
• 2002 CIOs job was to ensure that the
  electronic infrastructure
• for e-commerce and e-business
  were established
• 2004 focused on justifying IT investments and
  building a portfolio
• of IT projects that balance risk
  and return

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CIO Roles in Three Areas

• Jeanne Ross David Feeny divide the world of
  computing into three areas.
• (1) Mainframe Era (1960s early 1980s)
• (2) Distribution Era (late 1970s early 1990s)
• (3) Web Era (mid 1990s current)
• The roles of the CIO in each era
• Mainframe Era
• - operational managers of information systems
• - focus on delivery
• - deliver applications on time and within
  budget

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CIO Roles in Three Areas

• Distribution Era
• There was a lot of change within this era
• (i.e. PCs, LANs WANs, client-server concept)
• CIOs took on four more roles
• A. Organizational Designer
• make the IS organization responsive to the
  business
• B. Technology Advisor (most important role)
• align business and IS
• educate management on IT opportunities in
  order to solve problems
• provided CEOs and executives with an
  understanding of IT

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CIO Roles in Three Areas

• Distribution Era Cont
• C. Technology Architect
• design IT architecture
• understand future capabilities
• D. Informed Buyer
• use third parties to leverage
  internal IS resources lowering the cost of IS

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CIO Roles in Three Areas

• Web Era
• CIOs are business visionaries
• driving force behind company strategies
• evolution of the CIO CEO relationship through
  the dot-com emergence

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Four Aspects of the CIOs Roles Today

• There are four different aspects that comprise
  the role of todays CIOs
• (1) Leading creating a vision by understanding
  the business
• (2) Governing establishing an IS governance
  structure
• (3) Investing shaping the IT portfolio
• (4) Managing establishing credibility and
  fostering
• change

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Four Aspects of the CIOs Roles Today

• Leading
• - CIOs must understand the environment in which
  the business operates
• There are seven approaches CIOs are using to
  understand a business and its environment
• A. Encourage Project Teams to Study the
  Marketplace
• uncover surprises
• learn things about the industry that the
  business does not
• already know
• B. Concentrate on Lines of Business
• IT needs to serve individual lines of
  business in order to
• recognize competitive and performance
  matters
• Two ways to do this Alignment
  (supporting current
• operations) Impact (influence future
  ways of working)

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Four Aspects of the CIOs Roles Today

• Leading Cont
• C. Sponsor Weekly Briefings
• meeting with management and staff will help
  the IS staff get
• a better understanding of the problems
  and issues at hand
• D. Attend Industry Meetings with Line Executives
• E. Read Industry Publications
• F. Hold Informal Listening Sessions
• G. Partner with a Line Executive

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Four Aspects of the CIOs Roles Today

• Leading Cont
• It is vital for CIOs to create a vision and sell
  that vision within the organization
• A good vision will provide stability if it sets a
  direction for the organization
• CIOs need to encourage IT experimentation by
  supporting IS champions
• Champion someone with a vision who gets it
  implemented by obtaining the funding, pushing the
  project over hurdles, putting his/her reputation
  on the line, and taking on risk for the project.
• IS champions need three things from IS management
• information, resources, support
• Aetna Life example

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Four Aspects of the CIOs Roles Today

• Governing
• IT Governance the assignment of decision
  rights and the accountability framework to
  encourage desirable behavior in the use of IT
• Three Components in IT Governance
• (1) six governance styles
• (2) five key decision areas
• (3) governance mechanisms

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Four Aspects of the CIOs Roles Today

• Governing Cont
• Six Governance Styles
• - decision rights and input rights
• A. Business Monarchy
• B. IT Monarchy
• C. Feudal
• D. Federal
• E. Duopoly
• F. Anarchy (rarest of the strategies)

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Four Aspects of the CIOs Roles Today

• Governing Cont
• Five Decision Areas
• I. IT Principles statements about how IT
  will create business value
• II. IT Infrastructure Strategies states the
  approach for building
• 
  shared and standard IT services
• 
  across the enterprise
• III. IT Architecture states the technical
  choices that will meet
• business needs
  
• IV. Business Application Needs business
  defines its application
• 
  needs
• V. IT Investment Prioritization defines
  the process for moving IT-
• 
  based investments through
• 
  justification, approval, and
• 
  accountability
• - Duke Energy International Example

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Four Aspects of the CIOs Roles Today

• Investing
• Strategic View of Making IT Investments
• A study conducted in the 1990s showed that
  within certain industries competition leads to
  innovation, which leads to productivity
  increases
• These industries included
• Retailing - Wholesaling
• Security Brokerage - Semiconductors
• Computer Assembly - Telecommunications

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Four Aspects of the CIOs Roles Today

• Investing Cont
• IT investments in industries that depended on
  information processing and that faced growing
  competition had the greatest productivity
  increases under three conditions
• IT investments targeted the main levers of
  productivity
• (2) IT investments were made in the right
  sequence and at the
• right time (Wal-Mart vs. Kmart Case)
• (3) IT investments were complemented with
  innovations in
• management practices
• (Wal-Mart simplifying their logistics
  practices)

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Four Aspects of the CIOs Roles Today

• Investing Cont
• Most companies have numerous projects that they
  would like to conduct each year
• Lack of time and money
• Companies must prioritize projects
• - (AXA Financial Case)
• It is best to use a team-based approach to
  prioritizing projects
• Healthier teamwork
• Better decision processes
• Better definitions of projects
• Different projects require different treatment

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Four Aspects of the CIOs Roles Today

• Managing
• Establishing Credibility
• 1. Today
• 2. Tomorrow
• Fostering Change
• - Change Management
• - ODRs solution Sponsor, Change Agent,
  Target
• Internal and External Operations
• - Employees
• - Suppliers
• - Customers

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Four Aspects of the CIOs Roles Today

• Office of the CIO
• Individual Group
• History of CEOs
• Early 1900s Manufacturing
• 1930s to 1950s Sales and Marketing
• 1970s to 1980s Finance (CFOs)
• 1990s to 2000s Information Technology

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Hottest Jobs in ITfrom www.cio.com

• Offshore Project Manager
• 70,000 250,000
• BI (Business Intelligence) Analyst
• 80,000 - 125,000
• Vendor Manager
• 150,000 - 300,000
• Head of IT Finance
• 100,000 - 150,000

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Conclusion