"CIOs Have To Think Like Business Managers'

CIOs are facing multiple threats. The CMO and CFO are gaining more control over the IT budgets. What is driving this change?

The shifts in the economy, markets and consumer behavior have brought about dramatic changes in how organizations procure technology and services. The Consumerization of IT, proliferation of Cloud based Apps and the spread of BYOD (Bring your own Device) is unleashing the End users from the shackles of their IT organization. This has resulted in Business units within large companies, procuring software, services and devices directly, without necessarily going through their IT or Procurement group. CMOs are under pressure to reach out to their target market using a maze of channels - including Social and Mobile media. Their marketing needs and channels and technology requirements have evolved at a rapid pace. Many CMOs feel that IT hasn't kept up with the pace of change in their segment.
On the other hand CFOs are faced with a different reality of balancing current financial challenges with the prospect of financing future growth as the market recovers. Hence they are in the driver's seat in terms of driving IT budgets and expecting CIOs to deliver more value within a constrained budget.
This is the basis of the conflict between CIOs and CMO/CFOs.

How are these changes affecting the CIO's position and responsibilities?

CIOs have to manage their day to day IT needs within a smaller budget, while being expected to deliver more value to the fast changing needs of their Business groups. CIOs also have to grapple with the impact of the shifts in the technology landscape and ensure that their internal teams are up to date with the latest tools and technologies. They have to ensure a smooth transition to a more flexible, variable cost based IT environment, while ensuring that the legacy systems and data are well supported. Increased use of Cloud based Apps, consumer devices, mobile devices and Analytics is forcing CIOs to open up their IT to interact more seamlessly with diverse platforms and data channels. While this multiplies the complexity of managing these assets, the bigger challenge is ensuring security and compliance across these layers. On the other hand, tighter IT budgets mean that CIOs need to reduce their Capex spend and depend more on external service providers and SaaS business models.

What should be the 'CIO survival strategy'?
CIOs have to think like Business managers and reshape their IT enterprise to become a leader than a follower of business requirements. Anticipating internal needs as well as external customer demand has become essential to stay ahead of the game. While internal users expect their IT to adapt to the converging trends of Cloud, Mobility and Big Data, external customers just want better service and faster response time. Building agility into their IT enterprise can empower CIOs to shift resources and costs based on the changing demand patterns. CIOs have to feel the pain of being on the frontlines, while at the same time keeping their organization running efficiently. This requires more and more outsourcing of IT Infrastructure and partnering with service providers to continually tap into business aligned applications. The more cutting edge needs should be managed internally by building expert teams who are abreast of latest technologies and can quickly crank out solutions, stitched together with internal and third party resources to ensure their organization stays ahead of the Technology curve and Market cycles.