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Changing Role of aCIO

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PCQ Bureau
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The past few years have seen executives with newer and more innovative

designations taking charge in many big organizations: Chief Compliance Officer,

Chief Risk Officer and Chief Technology Officers, etc. Amongst all these

designations, the one officer that has gained prominence over years is the Chief

Information Officer (CIO). The role of a CIO originated in the early days of IT

because other executives, namely CEO or CFO, were not supposed to have the

knowledge of technology. CIOs were therefore meant to manage the use of

technology for an enterprise's business requirements. These CIOs rose from the

ranks of techies and were responsible to manage IT deployments from as basic as

an enterprise network to as complex as an ERP system. It was considered a

difficult job due to the complex and integrated nature of business with the then

available modern technology. The creation of CIO position was a rational

decision for an enterprise to manage its technology needs for business. But,

this role of a CIO no longer exists. It has evolved to be much more demanding

and more focused towards the business.

The modern-day CIO is not merely managing the IT needs of his organization,

but is finding himself to be at the decision-making table amongst other C-level

executives. He is the right hand for the CEO, and has an equal say in

implementing business strategies for the organization. As enterprises are



trying to be more efficient through process automation, and have more global
presence in the competitive environment, it is the CIO who is leading the charge

on how to achieve that in a low-cost and efficient manner.

N Nataraj,



Chief Information Officer, Hexaware Technologies

A CIO should keep himself abreast with the latest developments in

technology and its effective usage. He has to work as the right-hand of the

CEO in ensuring that business delivers the best, in the least possible time.

'Time to Market' is one component where a CIO can contribute a lot by using

the latest technology. He has to understand business challenges and the

opportunities on the horizon. A CIO also has to keep himself updated on

various checks and balances that can be put in place and understand various

security standards and their relevance to the organization.

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The role of a CIO is something that has evolved over the past 25 years.

Managers of Information Systems of yesteryears have transformed from being pure

technology leaders to business managers. The reason for this being, the change

in the way technology impacts life today. 25 years back, IT was seen as an

enabler for doing better business, today it is IT that runs a business. Hence,

IT strategy and an enterprise's business are no longer differentiated from one

another, rather these two go hand in hand.

Eventually, for every enterprise it is the 'profit' that matters from their

investments. It is the responsibility of the CIO to deliver and communicate

profits from an IT investment to the management of the organization.

Craig Hergenroether, Chief Information Officer,

Barry-Wehmiller Companies, Inc.

A CIO is expected to continuously improve technology, which is backed by

huge budgetary spends in normal times. In uncertain times prevailing now,

the CIO is expected to bring in technology innovations that can cut costs,

but with stricter budgets than before. We have been fairly successful in

achieving this through better consolidation and optimization of technology

infrastructure throughout the group. The CIO needs to keep himself abreast

with the way business processes are executed across the industry that he is

in. He can also do a lot of good if he can implement best practices in

business processes from other industries too.

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New-age CIO



If we trace back the role of a CIO in past, he was a person who manged the
infrastructure of the company. And primarily hardware and software constituted

the core of the IT infrastructure during those days. Now the focus has shifted

to providing IT systems as a value add-on to the enterprise, and this value

add-on is of two kinds: one is to identify what kind of investment is being made

and correspondingly what value does it adds to the business processes. These IT

systems when used provide some process form indicator matrices like enhancement

of productivity, on-time delivery, quality and customer satisfaction, etc, when

they interact with the enterprise's business environment. For instance, how a

service based model will work for the enterprise or how can virtualization be

beneficial for the organization's business or what social networking tools could

be used for enterprise's intranet portal. The performance of these indicators

which IT is expected to provide is directly related to the CIO who is supposed

to make this transition happen. Therefore the CIO's role which was focused on

technology and getting the people to build and operate applications has

transitioned into understanding the business needs from a competitor's

perspective to customer profiling of the business, to understanding the key

strategies that enterprises are trying to achieve in short term and in the long

run. The role of the CIO thus, has extended from just IT infrastructure

management to business management as well now. They are also required in the

business transformation process. Hence, today's CIO is not just a “reliable

service provider” but also a “transformational partner”, helping the

organization transform with the ever-changing business scenario.

SV Ramana,



Chief Information Officer, Tulip Telecom

The CIO is not just required to be only a technology person but also a

business oriented person understanding the market, customers, sales,

competition and therefore he is now an intermediary between the technology

and business. To be a CIO, a person ideally should have to be from

technology background to incorporate new



technologies in the organization. He has to understand the trends and
technologies which are happening across the globe related to what his

business needs in the organization and see how minimally he can add value

through minimum costs, because a lot of investments in IT infrastructure are

not being used by organizations per se.

Duties a modern CIO adorns



Today, there's a greater focus on strategy in the CIO's role. He has to look at
areas such as business-IT alignment, finding out ways for IT to streamline the

business processes for value or supply chain efficiencies, or evaluating

business opportunities in new technologies. Moving ahead from IT

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infrastructure management, the role of today's CIO encompasses following

areas:



Law and compliance issues - With increasingly complex regulations
emerging, CIOs are required to design and build business processes, systems and

organizational structures that not only are compliant with today's stringent

rules, but also anticipate the direction of future regulations.



IT and Business integration - Information and technology are levers for
trimming and simplifying business processes for the organizations, and building

stronger, more effective partnerships and supplier relationships. CIOs are

taking a leadership role by showing business executives what IT can do for them

and for the organization's profits.



Creating value - CIOs must work with their fellow business leaders to
shift projects and assets to areas most likely to generate returns, and shed or

streamline assets and operations that are destroying value.



Managing risks - Need to identify threats, balance risk and cost, and
test vulnerabilities, plans and assumptions



to ensure the safety of goods, people, information and facilities.



Muralikrishna K.,



Vice President and Head, Computers & Communication Division, Infosys
Technologies

A CIO needs a strong understanding of all the processes in an

organization to analyze where these can be effectively automated. They need

to appreciate the needs of the key stakeholders in the organization because

they have the task of enhancing their decision-making. A CIO has to

frequently work with external suppliers and clients to eliminate costs by

fashioning intricate supply chains. They record the business accounting

details and work intimately with the finance department in producing the

quarterly reports. Then they have to manage people and projects. Finally,

they find themselves at the cutting edge of all the business trends because

of the ramifications these have on IT. To be a CIO, one has to develop the

necessary skills and experience and understand their strengths and

weaknesses. A key tool that is necessary for a move in career to the

business side is education.

Career path



There is no strict career path that one needs to follow to reach the position of
a CIO. Anyone who has a deep understanding of the way business thrives in the

industry they are in, coupled with good understanding and appreciation of

technology, can become a CIO. One also needs to keep himself abreast of latest

in technology to get to the top.

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A professional who eyes the coveted designation of the CIO has multiple paths

to follow. One, goes through the development-the person will have ample software

development skills and knack to deal with software related problems. He can

begin his journey as a developer, and then gradually while walking on this path

and crossing the milestones like senior developer, team leader, module leader,

center head, he is ready to adorn the garb of a CIO. Because by that time, he

would have had enough exposure to manage delivery and development of major

projects and major systems across the organization's business processes.

Ahmed Mahmoud



Global CIO, AMD

The CIO should keep himself abreast with latest technologies that will

give him essence of the industry trends. My advice to CIO aspirants would be

to broaden their business acumen by gaining experience across organization's

business processes. I have noticed a lot of young folks work hard to advance

quickly up the career ladder and in doing so they do not add substance to

their capabilities. They should try to get business knowledge of various

business processes, and if a person is in a leadership position, then he

should try to support various parts of businesses like HR, finance,

operations, etc rather then restricting himself to one function. This way he

would develop the necessary business acumen, as by then he would have done

jobs in all IT supporting aspects of the business. This is the kind of

experience that enterprises seek from prospective CIO candidates, as

experience can only be gained and not taught.

The other path that one can proceed through goes through the operations side.

He can start off as an Operations Engineer, and then hone his operational and

management skills by getting into the shoes of: a team leader of operations, the

head of operations (who manages larger teams managing operations), and the

Project management head. After this, he has got a fair chance of becoming a CIO,

but quality and excellence are the other must-haves.

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What it takes to be a CIO



To be a CIO, certain necessary skills and experience are required but besides
this an understanding of their own strengths and weaknesses must be there; this

helps when they have to deal with issues that pertain to technology or people

management. A CIO should have the knack for technology, but it is not necessary

that he has to be from a technology background, though an engineering background

is the initial requirement, good educational qualifications are one of the

pre-requisites along with a degree or diploma in business administration.

Managerial skills are also very important and an MBA degree would be significant

in pursuing a career as a CIO.

Sumit Chaudhary,



CIO, Reliance Communications

He should definitely be an engineer. A reason why engineering degree is

required is because engineers are taught to work within constraints and

there is never an open book that provides all solutions. So they have to

come to terms with technology and financial constraints and find solutions

to business problems within those constraints. They have to come back to the

top management with the solutions and one of the necessary skills which

engineers are taught is to understand and break down a problem into

manageable chunks and then put a solution for it. CIOs need to have a

business management background to sell, communicate, do business cases.

Business communication, presentation skills and people management skills are

other pre-requisites. A CIO must undergo some form of training in risk

management because they are chartered to manage risks for businesses.

The top management would any day prefer a person who understands their

business. So, if a CIO is where you see yourself tomorrow, or want to be say

five to ten years down the line, understand the business you are in, obtain the

appropriate cross-functional experience that is required to move up the

corporate ladder and you are all set to go.

Today's CIOs are not just 'geeks', but a planner, a strategist and have

enough business acumen to achieve profitability and success for their

enterprises.

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