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CIOs must actively encourage LoB involvement

Louise Francis | April 28, 2014
Ever since the first CIO roles evolved in the 1980s, each cycle of technological change has been accompanied by the notion that the CIO role will become irrelevant and disappear.

A big characteristic of third platform technologies is that LOB managers get it. They understand how the technologies can help them meet their business objectives, they know how to acquire the technologies and they are quite capable of successfully implementing the technologies simply and quickly -- at least that is how they perceive it.

Globally, IDC has found over half of new IT investments in 2013 involved direct participation by line of business (LOB) executives. If this trend is extrapolated LOB will be directly involved in 80 percent of new IT investments by 2016. This trend is equally relevant in a 2013 survey, of over 300 New Zealand executives, which found the CIO's level of involvement in business transformation projects has dropped below 50 per cent for virtually every stage of the project, whilst LOB involvement has risen to over 50 per cent.

Line of business executives are now making more technology decisions -- with or without IT's imprimatur. CIOs and analysts share pointers on how to develop and nurture a working relationship with these business leaders.

However, the problem is not when IT is excluded. It occurs when IT is unaware and "shadow IT" develops within the organisation. Rather than the big stick approach (which will probably exasperate the situation), the CIO should seek out the root causes behind shadow IT. They should actively encourage LOB involvement in technology decision-making and implement an effective governance process that supports self-management of IT decision making.

Source: ChannelWorld India

 

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