A chief information officer (CIO) is the person responsible for the management, implementation, and structure of the various technologies used at large organizations. Technology plays a huge role in the ability of a company to gain traction in a market and optimize all of its resources for the best level of revenue income. The CIO role is therefore, one of huge responsibility that requires a good deal of management expertise and finesse.
The job of the CIO is to analyze which technologies and business models best suit the needs of the organization and how they can be deployed to improve existing business processes and also take advantage of future opportunities for market share and revenue growth. With one eye on the present moment and the other eye on the future, the CIO faces a lot of challenges, particularly in the current economic landscape which is undergoing a huge amount of rapid change as well as digital transformation. In this article, we will examine how the CIO can effectively manage this change to help drive business growth and achieve success.
Be Objective
A CIO is dealing with a business landscape that is crowded with new technology and people, all claiming to be the next best thing and looking for attention. On a daily basis, this person is looking at cloud computing, wireless communications, mobile platforms, blockchain technology, artificial intelligence, advanced computer systems, cybersecurity and all the big data analytics that accompany these.
It can be a minefield, but the key is to remain objective and take a dispassionate view. The CIO needs to make decisions around what is worthy of their attention while also recognizing that they cannot remain fully informed about every little thing happening in the market. It is really about understanding the business and its growth objectives. After this, it becomes a case of linking this knowledge to the best and most cost-effective technology that is capable of delivering positive results while also aligning well with the core company product, business processes and go to market approach.
This person will be faced with a lot of opinions on a daily basis and both their email and social media news feeds will be filled with trending technology information. An objective approach is needed, they must filter out what is good but unnecessary and what is simply noise in order to zone in on the kind of new technology and innovations that match the company's products in the market. This objectivity will also help the CIO to avoid rushing headlong into the most cost-effective option or being swayed by the marketing budget of the technology companies looking for attention. Instead, patience and objectivity will be crucial to getting it right first time and not having to change direction later.
Be Responsive
We have just discussed objectivity and patience, but of course this does not mean that a CIO can afford to be slow and indecisive. Quite the opposite in fact, the CIO needs to be agile and responsive and capable of moving quickly and decisively in response to trending information or technology deals that are available immediately.
Fast decision making and responsiveness are only of value if the CIO has the knowledge and expertise to understand what the new technology can do and what it offers the multinational on a long-term basis. This may vary from individual to individual, but a CIO is expected to come to the table with a strong background in technology with fully formed ideas around future innovations that are likely to have a positive impact.
If a business is not currently operating in a cloud deployed environment and the CIO feels that this is the best way forward- then they will need to map out a strategy around digital transformation and decide which business units will be moved into the cloud at the most appropriate times. The CIO will also need to take a holistic approach to technology ensuring that business critical functions have technology that links to each other – HR systems need to integrate with global payroll systems, communications tools need to be accessible by all departments, insights and analytics need technology that integrates across a wide variety of systems to extract useful data.
The CIO will also need to build strong relationships with the other senior leadership people within the organization -very little happens in isolation these days, and the CIO will require both guidance and buy-in from company peers and business leaders. If these other leadership people understand fully where the CIO is coming from and support this person, then decisive and responsive actions can happen a lot quicker. Also, the necessary financial support will be readily available and won't be a blocker to progress.
Strengthen cash reserves
Cash is always crucial, but in times of upheaval or economic turmoil, strong cash reserves will be required to drive the kind of strategy needed to ensure that the organization survives in the short term and thrives in the long term. It is very difficult to manage rapid change and influence strategy with limited cash reserves. While the cash position of the company is usually the responsibility of the CFO, the CIO also has a role to play here.
The CIO can choose to deploy resources just to specific departments while also scaling back technology resources in other departments -this can free up cash resources and help strengthen the overall balance sheet of the company. The CIO can make a decision to defer an important technology investment until the next financial year because they believe it is in the best interest of the strategic direction of the company to do so. They may instead choose to use the additional available cash for a short-term deployment of innovative technology in a specific area of the business, for example, global payroll or compliance.
Hardware, software, projects and personnel can all be considered when it comes to making decisions around strengthening cash reserves. The CIO can influence decisions here by deferring spending and choosing to focus on technology that results in money coming into the business. They might look at how an in-house developed application could be put on the market very quickly and turn into an important revenue stream. They can work closely with the CFO to determine the right course of action that will strengthen the position of the organization to make the appropriate financial response when a future worthy investment in technology presents itself.
Digital acceleration
The CIO is often the person responsible for setting the IT strategy and aligning it to the broader business strategy. If it is a digital business, then the IT strategy is likely to be the main driver of the business strategy. In such a case, the CIO may decide to make the bold decision that, despite the rapid change in the landscape, now may be the right time for a digital acceleration.
Every department will be interested in investment and the latest innovative tools and technology- The CIO needs to navigate these requests and use their best judgment along with the guidance and opinions of the rest of the C-Suite executive team, to make a call on which department is most ready to take advantage of a digital upgrade to become an immediate driver of overall business strategy. If they get this decision correct and receive the right level of support from business stakeholders -then this decision can achieve genuine business momentum.
Look at payroll
Payroll is always one of the largest company expenses on the books, yet surprisingly, it often does not receive a great deal of attention from key business leaders. It would be a mistake for a CIO to overlook the importance of this department and it would be a bigger mistake to assume the technology investment and digital upgrades are better suited to other business units.
Anything that can improve the process of global payroll delivery via innovative digital tools is a worthwhile investment. Realized gains can come in the form of process efficiencies, time-saving automation, standardized processes between teams in different countries and crucially, real time analytics and global consolidated reporting. The CIO would benefit from actionable data and intelligent business insight that might remain hidden within global payroll data when there are no innovative digital tools to extract it.
Now might be the correct time to build a strong platform and leverage IT strategy to enable digital change in global payroll. The CIO needs to examine departments that could benefit from a digital upgrade that will better position the company to be more productive and take advantage of market opportunities. Timing is crucial here and that CIO will be looking to upgrade the most suitable department at the right time- choosing to upgrade global payroll and HR at the same time in a way that ensures these two benefit from connected digital platforms could transform the way they deliver their business services.
Leverage internal expertise
CIOs tend to have a lot of people reporting directly into them or interacting with them in other ways from around the various business units- this makes it a busy and demanding role but this is usually a good thing, because they then have access to a broad range of information and knowledgeable people to help them make the right decisions at the right time.
They would like to have conversation with peers and direct reports so they can access all the relevant information they need to make an objective decision around direction and financial investment. The decision they make will be public and open to both scrutiny and analysis- this is simply all part of the game for a CIO at a modern multinational. They understand that key market gains are there to be had when innovation and decisive action happen, but they will also be keenly aware of the consequences of a decision or investment that does not work out. Those CIOs who understand the business and the strategic direction will also have clarity around their priorities- and they will use these priorities to help them manage change in an effective way.