The Role of the Chief Information Officer - Term Paper Example

The Role of CIO s 21st March, The Role of the Chief Information Officer Introduction A Chief Information officer (CIO) is the highest ranking Information Technology executive in an organization who usually exhibits managerial roles that require an effective communication with management of that organization or company. In addition the CIO has a wide corporate perspective in influencing organizational strategy and planning of Information Technology (IT), and managing information resources. Strategic planning is mainly an organizational management activity used to strengthen operations, set priorities, ensure stakeholders and employees work towards a common goal, focus resources and energy, establish an agreement around the intended results and an assess an organization’s direction in regard to changing environment. Corporate governance can be defined as the processes and structures for control and direction of an organization. It concerns relationships among the board of directors, minority shareholders, controlling shareholders, management, and other stakeholders of a company. Good corporate governance enables sustainable economic development through increasing the companies’ capital from outside and enhancing their performance. For an information technology resource of a company to be effective, the CIO must come up with an innovative strategic plan for the management to peruse this objective. An innovative CIO scouts useful technologies and applies them to improve the existing processes of the company. To add value and become even more strategic, a CIO can assist in developing and executing end-to-end innovation processes where innovations can be possibly discovered. The evolution of technology around cross the globe is reshaping the approach of how organizations are aligning business and information technology to a position where IT itself has transformed in to a business. This has forced chief information officers to be agile and more forward thinking in their strategic planning activities. Today most corporations have fallen on the basis of innovation and technology. The most profound reason for this is that executive leaders have focused more on making decisions that only affect shareholders than integrating IT strategic plans which assist in innovation and sustainability of the business. Best practices of a CIO echo the essential theme that a sustainable information technology strategic plan is mainly aligned with an organization’s mission for sustainability through innovation, profitability and growth of the business. A paradigm shift in terms of information technology has a productive impact on the organizational structure and thus the role of a CIO. The CIO’s leadership roles According to studies conducted by Broadbent and Kitzis (2006), the CIO’s role is mainly governed by a number of themes that steer his/her focus on strategic planning for information technology of a corporation. There have been rapid technological changes for corporations over the past years and this requires a CIO to be flexible and agile to these changes that affect the operational and technological structures of corporations. Broadbent and Kitzis (2006) suggested that, CIOs should become a technological acrobat in terms of crafting and implementing the information technology strategies which ultimately govern the results of a corporation’s growth, innovation, profitability and sustainability. Another challenge for CIOs is convincing the senior structure particularly the corporate governance. In reference to studies conducted by Van and Haes (2009), under different perspectives regarding governance of corporations and Information technology strategic planning, there are two commonly opposed diametrical views that include a decentralized and liberal governance of IT or in other terms a pancake structure. Broadbent and Kitzis (2006) concluded that, in this pancake structure a more independent employee decision making ability relies on individual competence. Another perspective is an approach based on protection of corporate integrity and fairly so for the period of time. Under this approach, Van and Haes (2009) noted that, the individual actions of each employee don’t compromise integrity of an organization’s infrastructure. For example Web 2.0 offers free reign to communicate and collaborate through social media, blogs and Wikis without understanding consequences or even the technology. This example serves as evidence for opposition of the organization to liberal governance. Through this example, a CIO is needed to be directly engaged in activities of helping an organization to understand technologies which are an added advantage to the organization. In addition, Van and Haes (2009) further suggested that, there should be a perspective of providing a balance through cultivation of a cultural freedom of innovation within guidelines. According to studies conducted by Austin et al. (2009), it is important to note that the role of an innovative CIO is mainly setting a tone for a safe, disciplined and a secure innovative environment under which an organization operates. According to the industrial demands and provisions, a CIO’s strategy is mainly to protect the infrastructure of an organization and cultivate an environment of sustainability, growth and innovation, while ensuring a positive return on investment to the corporation’s shareholders. The following are key leadership roles for any CIO in an organization. In reference to Austin et al. (2009), a CIO should liaise with other organizations with an aim of establishing external relationships through giving presentations in conferences. The CIO should act as a figurehead: perform ceremonial duties such as visiting customers and the allies, responding to questions from journalists and greeting visitors. Under the personnel department, A CIO should motivate, train and subordinate the staff. The CIO should also seek information to learn and understand from the competitive business environment listening to other external experts and reading journals. According to studies conducted by Selig (2008), a CIO should also act as a disseminator who transmits information to different organizational members through forwarding memos and reports, holding informational meetings and presenting information via making phone calls. A CIO should also act as a spokesman. This involves communication of ideas and information through talking to users. Moreover, this communication should involve a board of directors to provide substantial information regarding their organization. The CIO should also be an entrepreneur who designs and initiates more of controlled changes in an organization. Through the information systems available, a CIO is involved in resource allocation. According to studies conducted by Vanand Haes (2009), this entails a responsibility of allocating human, material and financial resources via developing project proposals, monitoring of IT projects and working on budgets. In addition, the chief information officer is a negotiator who is responsible for representing an organization in negotiations with vendors regarding procurements and unions concerning wages. CIO enabling the governance of IT IT governance refers to an accountability framework and specifying decision rights that encourage a desirable behavior in use of information technology. In reference studies conducted by Baschab and Piot (2007), it is important to note that, as corporate governance allocates important decision rights in an organization affecting a chief executive officer (CEO) position, IT governance also important decision rights related to information technology which affects the position of a CIO. In many companies, IT is has evolved to be important in the growth, support and sustainability of the overall business. According to studies conducted by Vallabhaneni and Association of Professionals in Business Management (2008), IT governance involves processes, leadership and organizational structures that ensure an organization’s information technology extends and sustains the organization’s objectives and strategy. IT governance is very important because it greatly influences benefits from information technology investments. Through combining practices (like well-designed governance mechanisms and redesigning business processes) and well matched IT investments the top-performing organizations generate higher returns on investments. In reference to Stenzel (2011), the sole purpose of this IT governance is actually to support an organization’s mission through aligning IT with business, maximizing benefits of IT and managing the risks associated with information technology. IT governance concentrates more on transforming and performing IT processes future and present demands of a business and its customers. This clearly defines IT governance as an entity that makes decisions regarding the future of an organization. Moreover, in reference to Luftman et al. (2004), IT governances faces a dual demand of; positioning and transforming information technology for meeting business challenges in future and contributing to the present performance and business operations. This clearly shows that governance of it is both externally and internally oriented, spanning both future and present time frames. Therefore, in reference to Selig (2008), one of the challenging issues facing IT governance is how to simultaneously transform and perform future and present demands of a business and its customers to satisfy them. Information technology and business Information technology has for long been considered to promote an organization’s strategy. in reference to studies conducted by Maizlish and Handler (2013), today information technology is viewed as an important part of the organization’s strategy in promoting in exploitation of information-based competition to capitalize on opportunities, promote organizational growth and maximize it’s the organization’s benefits. Because of this, information technology has progressed from a position of a separate entity marginalized from other functions of an organization, to become highly critical. For a CIO to be effective, he or she should figure out a strategic plan, align it to business and more importantly be willing to modify it according to the changing trends in innovation and technology. He or she should be dynamic in planning and implementing processes since technology itself is changing from day to day. Maizlish and Handler (2013), concluded that, in order for the CIO to obtain a more effective strategic plan demonstrate validity of IT goals to his/her corporate counterparts, the tools used for developing must be equally agile as the company itself. A variety of models have been developed based on the changing of technological environments under which businesses operate. Flexibility of the models makes more sense and the CIO’s role is to discover a most appropriate model to be utilized by his/her organization. For instance Marchand et al. (2002) stated that, there is the alignment maturity model that underscores the requirement for business alignment with information technology in a growing organization. Therefore taking into account studies conducted by Mann et al. (2013), in this model, most organizations do not mature either in; governance, communications, partnership, skills, value, and scope and architecture. Under this model a CIO conjoins the IT initiatives with business strategy through; locating an area of origin for ideas in the organization, evaluate the leaders’ influence in these areas, identify the flow of these ideas, and make a case on how his or her objectives will produce quality outcomes for the organization. According to studies conducted by Mann et al. (2013), a CIO works to develop skills, set formal processes, and more import he or she aligns IT with the key business goals. In parallel products, customers, services and processes are constantly changing and hence the company’s business should also evolve accordingly. According to studies conducted by Khosrowpour and Information Resources Management Association (2006), a fundamental basis of a successful plan is mainly an intensive effort between technology and organizational leadership. Significant effort and time is required for developing long-term and short-term objectives for technology and information. Khosrowpour and Information Resources Management Association (2006) concluded that, the CIO’s role is mainly maintaining a relationship with corporate counterparts to gain an understanding of the organization’s needs and utilize opportunities for change. In reference to studies conducted by Gottschalk (2007), the CIO plays an important role of communicating with employees concerning what’s going on internally and how the external trends regarding technology affect their day-to-day operations. Under corporate management a CIO is more of a visionary. This is the case because, as a member of the board of directors, can offer a strategic view in terms of technology while relating it to specific areas of high-level accounting, governance, finance and corporate strategy. In addition, Gottschalk (2007) noted that, an effective CIO recognizes that certain technological trends, nevertheless unconventional to corporate infrastructure, should not be ignored due to uncertainty. In relevance to studies conducted by Khosrowpour and Information Resources Management Association (2006), the impact of these trends like cloud computing and social media on corporate leadership is inevitable regardless of skepticism among organizations. Westerman and Hunter (2007) noted that, security concerns have grown over years with cloud computing and social media because they exist both in the outside and inside of corporate firewalls. This ultimately threatens the basics of governance and thus corporate infrastructure. Following this a CIO comes in with an imperative role of convincing business executives to avoid implementing new technologies such as cloud computing and social media into a strategic plan as this poses a greater danger to sustainability and growth of an organization. A CIO should utilize social media to empower a company to solidify and protect his or her reputation as an effective leader. According to Cater-Steel (2009), this strategy should articulate precisely the goals by using social media, be aligned with business goals, set a short or long-term commitment, identify appropriate media channels and its target audience, and ensure a properly funded and staffed evolution. Cloud computing is also a major issue that a CIO faces in an organization. Resent global studies on future role of a CIO found that, 67% of the participants reported cloud computing to be a gateway to different business roles. The study also discovered another group which believed, cloud computing enables for business innovation and strategy. However, cloud computing also presents challenges as it promotes security risks and greater opposition from business executives to adopt. In reference to Heller (2012), a consensus exists that, cloud computing provides unlimited computing resources which are immediately available with no long-term commitment. In addition, it offers a pay-as-you structure which doesn’t tie a company to expensive equipment investments. Regardless of these advantages, there is still more resistance to adopt cloud computing because of fear. The CIO’s role is to provide a strategic role which, both reassures and consoles that the advantages of adopting the new technology are more than risks it introduces. Heller (2012) suggested that, he or she also assists her organization to engage and understand this concept regarding cloud computing since as social media; it also enables organizations stay connected to clients and also adds value to services. Regarding this, the CIO’s role becomes to facilitate business agility. According to Khosrowpour and Information Resources Management Association (2006), this agility is provided through cloud computing through removing some restrictive bureaucracy associated with creating new business. According to studies conducted by Lane (2004), introducing a cloud computing strategy into a corporate infrastructure not only implements new ideas but also to understand the reasons of implementing and how to implement the plan to increase the value of the business. A CIO is required to provide a case for the cloud computing strategy that focuses more on a critical analysis of benefits than its costs. Furthermore, Lane (2004) suggested that, the CIO should understand priorities of an organization since they relate to corporate strategic goals and objectives. Clearly the risks associated with cloud computing exist. This is because the risks present problems to organizational infrastructure if they become a nightmare for the organization. There is evidence from studies conducted by Westerman and Hunter (2007) that, most organizations are contented with the reality that vendors may not be forthcoming with transparency. Therefore a CIO should advice his or her clients to minimize their cloud activities to commoditize services that do not impact mission systems that are critical. In addition, according to studies conducted by Mann et al. (2013), a CIO should focus more on introducing desired applications in the cloud strategy than transferring an entire organizational infrastructure. For this reason, then it becomes easier to avoid the perceived catastrophe on compromising data of an organization. Conclusion In today’s corporate climate there is a disconnection between information technology executives and business executives in most organization. Much of this existing misunderstanding is mostly based on the antiquated rules of reasoning that the disconnection only exists to save money. Moreover it is thought that if the disconnection does not exist there is no need for it. New technologies have emerged for use by different organizations such as cloud computing and social media technologies which are unavoidable and ubiquitous. These technologies are increasingly gaining momentum as links that tie information technology, business, innovation and marketing together preventing them from becoming mutually exclusive. The effectiveness of a strategic plan both on the information technology and business side is lost if it does not include the elements of cloud computing and social media. A CIO’s role is to determine where these technologies best fit and the period they will add value to the business and contribute to its growth. For a fact, the corporate strategic plan remains to be empty without a strategic IT plan that is comprehensively aligned to complement the corporate plan. The CIO’s job is to ensure that the said plan is as agile and rigid, static and dynamic and complex and simple as the organization it supports. A CIO is actually an IT maven who understands how each element of the organization fits in to a grand scheme of a business and weaves the plan interconnecting them all. A strategic IT plan provided by a CIO should have provisions to cultivate internal talents of employees to enhance innovation, to leverage the new technology trends and establish precise guidelines coinciding with the corporate governance. References Austin, R. D., Nolan, R. L., & ODonnell, S. (2009). The adventures of an IT leader. Baschab, J., & Piot, J. (2007). The executives guide to information technology. Hoboken, N.J: John Wiley & Sons. Broadbent, M., & Kitzis, E. S. (2006). The new CIO leader: Setting the agenda and delivering results. Boston, Mass: Harvard Business School. Cater-Steel, A. (2009). Information technology governance and service management: Frameworks and adaptations. Hershey: Information Science Reference. Gottschalk, P. (2007). CIO and corporate strategic management: Changing role of CIO to CEO. Norwood Mass: Books24x7.com. Heller, M. (2012). The CIO paradox: Battling the contradictions of it leadership. Brookline, MA: Bibliomotion Books + Media. Khosrowpour, M. & Information Resources Management Association. (2006). Emerging trends and challenges in information technology management. Hershey, Penn: Idea Group. Lane, D. (2004). CIO wisdom: Best practices from Silicon Valleys leading IT experts. Upper Saddle River, NJ: Prentice Hall PTR Luftman, J. N., Bullen, C. V., Liao, D., Nash, E., & Neumann, C. (2004). Managing the information technology resource: Leadership in the information age. Upper Saddle River, N.J: Prentice Hall. Maizlish, B., & Handler, R. (2013). It (information technology) portfolio management step-by- step: Unlocking the business value of technology. Hoboken, N.J: Wiley Mann, A., Watt, G., & Matthews, P. (2013). The innovative CIO: How IT leaders can drive business transformation. Austin, Tex.: APress. Marchand, D. A., Kettinger, W. J., & Rollins, J. D. 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