Solve the CIO problem by properly organizing our capital
Our CIOs have a problem. One person has to have capabilities in
managing all of our capital. The CIO has to have professional
capabilities with the enterprise management strategy,
technology, equipment and network operations, human capability
management, business organizations, and business processes. The
CIO also needs to have capabilities with all types of enterprise
information capital data, knowledge, records, and intelligence.
We now propose CTO to handle technology needs. The idea of
splitting out management of our capital based on capabilities
required is valid, but we must do it right.
The same problem extends down from the CIO into the IT function.
IT has to have cobs in all these areas as well. All enterprises
that I have evaluated have problems somewhere or another because
IT does not have the capability to handle all of its
responsibilities.
We have such examples as:
> Business change being stuck in the technical IT backlog >
Information systems managed as technology and interfaced with
the business rather than being integrated and managed as part of
the business process > The analysis of business improvement
needs being separated from the business and being satisfied by
technology rather than precisely defined business improvements
for benefit > Users assistance in help centers that is
restricted to how to use technology per se and is no help in
using technology to solving business problems > Stress in data
and records with little support a capability for knowledge or
intelligence > System utilization managed as system availability
or a service level rather than managing the utilization of the
system to create value for the enterprise
So how do we solve the CIO problem and the problems faced by IT.
This is one of the issues we are discussing at the Business
Change Forum, in order to define problems with conventional
methods and to discover breakthrough in enterprise management.
The road of the problem goes back to the xxx of IT. Our business
processing used to be managed by each business unit with support
from our organization and methods kind of unit. They we started
employing more technology in our business processing that
required special professional capabilities, so we set up data
processing to develop the programs and to operate the expensive
xxx technology. So now we processed data separate from the
business. From here on things just evolved into Information
Technology units. We ended up with difficult to manage empires,
so we appointed a xxx in the CIO.
But what has happened to the rational that set up data
processing. We no longer need much programming capabilities
since we are using packages. The systems are much more pervasive
and familiar so everyone in the enterprise has at least, basic
capabilities. More and more of our computer power is operated by
the users, within IT handling the connecting architecture and
network.
Basically, we should rethink IT and all of our capital using the
basic premise. "What professional capabilities are required to
manage and support our capital". We also need to rethink the
meaning of capital utilization. We think of utilization as being
used. We need to think of and manage utilization as being used
for measured benefit that provides the return on our investment
in capital. For years IT has gotten away with providing
equipment or a service, and nobody managed how IT was utilized
to benefit the business or to provide the return on IT
investments.
We understand and structure all of our capital to satisfy three
important needs.
> To apply the proper professional capabilities to operate and
support the capital > To provide the capital in such a way that
it can be integrated and utilized by the business to produce
benefit > To manage the performance of capital across the
enterprise to ensure that utilized, improved, and developed
properly to provide the return on investment
When we really examine the capital we employ in the enterprise
to define it, structure it, and manage it properly, we will
automatically solve the problems of mismanaged capital, and the
organization of IT. The CIO would no longer be one individual
expected to do everything there would be separate professional
with capabilities to manage each category of capital.