Lecture 2

The Top IS Job

Learning Objectives

Introduction
Where is the IS organization headed?
The CIOs responsibilities
The Office of the CIO
CIOs roles in 3 eras

Module Code and Module Title

Title of Slides

Introduction
Growing demand for IT managers in the
U.S. and worldwide.
Management of IT in past 50 years has
drastically changed.
Basic functioning cost reduction
decision support inter-organizational
supply-chain and business eco-system

Onus on top executives to provide IT

vision and leadership.
Module Code and Module Title

Title of Slides

Where is the IS organization

headed?

Module Code and Module Title

Title of Slides

Escalating Benefits of IT
Changing technology and evolving IS role since
1950s.
Waves of Innovation:
Wave 1: Reducing costs
When use of IT focused on increasing the productivity of individuals
and business areas. The goal was to achieve clerical and
administrative savings by automating manual processes

Wave 2: Leveraging investments (continuous improvement)

Concentrate on making more cost effective us of corporate assets to
increase profitability

Wave 3: Enhancing products and services

Using IT to produce revenue by gaining strategic advantage or by
creating entire new business. IT was used to improve marketing,
distribution and customer service
Module Code and Module Title

Title of Slides

Escalating Benefits of IT
Changing technology and evolving IS role since
1950s. (a parallel process)
Waves of Innovation:
Wave 4: Enhancing executive decision-making
Focused on changing the fundamental structure of the organization
as well as creating real-time business management systems

Wave 5: Reaching the consumer

IT is used to communicate directly with consumers, leading to new
marketing, distribution, and service strategies

Wave 6 (new): leveraging partnerships through supply chain

management or other forms of collaboration
Interoperability ability of IT to allow firms to share information and
business process
Module Code and Module Title

Title of Slides

Escalating Benefits of IT (contd)

Waves of Innovation

Module Code and Module Title

Title of Slides

Traditional Functions are Being

Nibbled Away
Traditional set of responsibilities for IS
Managing operations of data centers, local
and remote systems and networks
Managing corporate data and legacy systems
Performing system analysis and design and
constructing new systems
Planning and integration of systems
Identifying opportunities for new systems

Module Code and Module Title

Title of Slides

Traditional Functions are Being

Nibbled Away contd
Trends that are moving traditional roles
out of IS:
Distributed Systems
Migration of software applications to user areas

Ever more knowledgable users

Better application packages
Systems development to integration

Outsourcing
Based on fiscal and managerial considerations
Module Code and Module Title

Title of Slides

New Roles are Emerging

IS involves a cluster of functions:
Run operations
Running computers and networks
Develop systems
Developing and maintaining systems, designing new
systems, and updating existing ones
Develop architecture
Setting as strategy and maintaining an architecture for both
IT and information, providing framework or standard for
systems operations
Identify business requirements
Helping articulate what the business needs from IT

Help uncover innovative business strategies

Through enabling technologies
Module Code and Module Title

Title of Slides

New Roles are Emerging contd

Different set of skills and management strategy
needed for each function:
Maximize efficiencies of it operations
Better allocation of it personnel time
Prioritize resources to demonstrate usefulness
of new software projects
It-enabled business innovations

Module Code and Module Title

Title of Slides

New Roles are Emerging contd

Four Major IS Activities

Module Code and Module Title

Title of Slides

The CIOs Responsibilities

Top IS Jobs
80s: Chief architect (strategic use of IT)
90s: addressing business issues
Late 90s to early 2000s (forefront role)
Mid 2000s onwards: more responsibilities and
lots of justification

Module Code and Module Title

Title of Slides

CIO Roles in Three Eras

Major IT Eras

Module Code and Module Title

Title of Slides

CIO Roles in Three Eras

The Mainframe Era
Predominated 1960s early 80s
Role of DP / IS manager = operational manager of a
specialist function

Distributed Era
In the 80s as PCs become commonplace
LANs and WANs linking computers
Took on 4 more roles:

Module Code and Module Title

Organizational designer
Technology advisor
Technology architect
External resources

Title of Slides

CIO Roles in Three Eras

The Web Era
Started in the mid-1990s for some
Arose from the emergence of the Internet
(especially WWW) as a business tool
Era is still in infancy but add to the CIOs job,
the role of business visionary

Relationship between CEO and CIO

Module Code and Module Title

Title of Slides

CIO Roles Today

Leading
Creating vision by understanding the business

Governing
Establishing an IS governance structure

Investing
Shaping the IT portfolio

Managing
Establishing credibility, managing IT functions,
and fostering change
Module Code and Module Title

Title of Slides

Leading: Creating vision by

understanding the business
Understanding the business
Encourage project teams to study the
marketplace
Concentrate on lines of business
Sponsor weekly briefings
Attend industry meetings with line executives
Read industry publications
Hold informal listening sessions
Partner with a line executive
Module Code and Module Title

Title of Slides

Governing: Establishing an IS
governance structure
Definition: IS Governance
The assignment of decision rights and the
accountability framework to encourage
behavior in the use of IT. (Weill & Woodham,
2002)

Governance versus management

Governance is about deciding who makes
decisions.
Management is about making decisions once
decision rights have been assigned.
Module Code and Module Title

Title of Slides

Governing: Establishing an IS
governance structure
Importance of corporate IT governance
Large and diverse IT assets
Striking a balance between global and local
needs
IT portfolio (in sync with business needs)

Assigning decision rights

Governance style
Definition: who has a decision right and input right.

Module Code and Module Title

Title of Slides

Governing: Establishing an IS
governance structure
Six governance styles
A business monarchy is where C-level executives
An IT monarchy is where IT executives hold the right
Feudal is where business unit leaders (or their delegates) have the
decision or input rights
Federal means that the rights are shared by C-level executives and
one other tier of the business hierarchy, such as business unit
presidents
Duopoly is where one IT group and one business group share a
right
Anarchy is where individual process owners or end users hold a
right. The anarchy governance style is rare in the five main IT
decision areas because it is not effective in guiding IT in a large
enterprise

Module Code and Module Title

Title of Slides

Managing: Establishing Credibility

and Fostering Change
CIOs must first establish credibility in IS
before change can come about.
Establishing Credibility
Deliver value-added, quality services
First impression matters

Module Code and Module Title

Title of Slides

Managing: Establishing Credibility

and Fostering Change
Fostering Change
Technical aspects
Emphasis on change management
Changing the way people work, bringing it to the
next level

Module Code and Module Title

Title of Slides

Managing: Establishing Credibility

and Fostering Change
Working across organizational lines
CIOs now find that systems they implement
affect people outside their firm boundaries
Arms-length to more cordial relationship with
partners (suppliers and customers)

For example, CIOs to work more closely with

suppliers executives to whom they outsource
their help desk, data center, network
management and other functions
More joint planning and joint working
Module Code and Module Title

Title of Slides

The Office of the CIO

Chief Information Officer (CIO)
Heads IS and works with op management,
customers, suppliers

Chief Technology Officer (CTO)

IT planning, architecture, new technologies

Chief Operations Officer (COO)

Daily IS operations

Chief Project Officer (CPO)

Projects management
Module Code and Module Title

Title of Slides

Q&A