Role of a Chief Information Officer

It was not long back that the designation of a CIO or the Chief Information Officer was unheard of. However, today
every organization-Fortune 500 or Misfortune 500 has a role of a CIO, right in place.

Lets us first define what a typical CIO looks like. What did you think-a geek computer programmer who can design or
implement any goddamn software in the world? Well, that was long ago, and we are talking about early 1980s. Now
the CIO of an automobile giant and a courier company has got the same qualifications and competencies. He has a
got a degree in computer science and another qualification in a technology oriented business discipline like an MBA
in Systems. He has a skill-set that includes a core technical background and a strong business background.

In the early 1980s, the position of a CIO was simply thought of as label for the head of information technology: a
person who keeps the information systems working cheaply and effectively (for else who thought what a server was,
leave alone knowing how it works). Information technology now is not a mere support function. Information, now, has
to be managed like Financial or Human Resources. There is a shift of focus from the ’Technology’ to the ‘Information’
in Information Technology. In short, the role of a CIO has shifted from data-room tinkerer to a master-thinker and
planner.

So lo and behold, the redefined CIO is the one “who can make sure that the company’s information systems are
aligned with its business objectives.” Now that is one responsibility you ought to have in your kitty to make it big. Not
only is he responsible for developing or acquiring new technology infrastructure, he has to manage the processes
and practices supporting the right flow of information in the organization. He usually rethinks and redesigns the
business processes of an enterprise and integrates the information technology into its immediate business plans.

The role of a CIO is evolving into a role where is not only cutting the costs but is also deriving significant business
value from the IT assets, so much so that they may be called the Chief Internal Investments Officer (CIIO).

After defining what the role of a CIO means today, let us now take an example of the role of a CIO in a typical
automobile company. You may think how motorcycles and IT are related. We’ll just see how.

CIO in an automobile company-What does he do?

An automobile company has to have a very strong and robust distribution line, which is one of its core business
processes. Such business processes cannot be managed manually simply for the reason that business critical
information has to be available real-time. The distribution line has to take prompt business decisions based on real-
time data. E.g. the Marketing head of an automobile company has to be informed where he stands with respect to
his monthly targets. He also needs the collection status to meet his targets. If such a strong business process of a
company is not automated, it can lead to loss of sales and a big hole in the company’s pockets.

For automating and integrating the business processes, migration to a flexible ERP (Enterprise Resource Planning)
is necessary. Implementation of an ERP is a costly process and a lot of money needs to be invested. The top
management of the company needs someone who can explain that the increase in revenue generated by the ERP
will be greater than the cost of implementation in the long-run. Moreover, the process of buying an ERP system is not
merely a vendor-driven IT gimmick. It needs significant knowledge of business processes of one’s company and
necessary technical expertise to do it in a cost-effective manner.

This is where the CIO comes in; he explains to the CEO in business terms what this new investment in IT-
infrastructure means and also monitors the whole process of the ERP design and implementation so as to align it
with the enterprise’s business objectives.

Two years down the line, the implementation of the above ERP will lead to increase in sales, saving of critical man-
hours etc. So the company is expanding, eh? The CIO has to talk to the lines-of-business heads on a constant basis
so as to know what the customers need and the development that they are planning in the years to come. Obviously,
the same old ERP will not work anymore; it needs to be upgraded or replaced. Again, the CIO needs to get the
budgets for upgrades approved, talk to the vendors and couple all the business developments with the updates in
technology so as to make space for some more infrastructure investments.