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Essential partnerships

Divina Paredes | July 22, 2013
Projects run solely by IT will go down: By 2016, line-of-business executives will be directly involved in 80 per cent of new IT investments.

Projects run solely by IT will go down: By 2016, line-of-business executives will be directly involved in 80 per cent of new IT investments.

This has vast implications for how the CIO works with the line of business, says Crawford Del Prete, chief research officer at IDC.

Del Prete says the CIO should really think how they can work with business leaders around the company not only to deliver services internally but to use technology to help the company differentiate and expand the business.

"On one hand you need to be listening carefully to what the problems are, on the other hand, you are bringing vision to them what their world may be. Communicating that is a complex matter."

--Beca CIO Robin Johansen

A best practice for CIOs is to work with line of business and prioritise assigning their professionals to work in those groups.

For many years there has been talk about the intersection of the CIO and the line of business, says Del Prete -- "how the CIO needs to be more involved in LOB and understand how the business is run".

"What is really changing is now the CIO needs to be not only be business-minded about the way IT services are delivered, but how they can work with business leaders around the company to help conceive and deliver services that can be used by the end customer of the enterprise," he adds.

This means helping product management or development teams leverage technology to differentiate and help expand the business.

Ray Wang, principal analyst at Constellation Research, notes that the consumerisation of technology has empowered line-of-business executives to make more technology decisions.

In a recent paper, he cites three indicators on how the pendulum has shifted from IT-led technology to business-driven technology investment.

The first is that IT budgets are going down or flattening, but tech spending is on the rise. The most common purchases include mobile and SaaS-based applications.

The second, he notes, is the rise of bring your own device (BYOD). He points out surveys indicate between 47 to 60 per cent of organisations allow BYOD, yet a SANS Institute survey shows only 9 per cent of companies are "fully aware" and about half were "vaguely or fairly aware" of what staff are doing with their own technology at work.

The third is the increasing adoption of cloud and SaaS while integration issues remain.

The bottom line for organisations is that C-suite executives should work together and "operate in parallel", he says.

"If IT slows down the business capability to innovate, the company will suffer as new business models emerge and infrastructure will fail to keep up," he writes.

 

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