Explaining the dynamic nature of IT value
Conclusion: Since the advent of the title of chief information officer (CIO), the reporting line for this critical role and those it has since spawned, such as the chief technology officer and chief digital officer, has been the subject of debate. The reality is that there is no right or wrong answer, but rather the reporting relationship of the CIO and his or her IT organisation is a function of the current value of IT to delivery of outcomes at a particular given point in time.
The reality is that the value of IT to delivery of business outcomes, despite the pervasiveness of technology in the modern enterprise, is not static and changes over time. Yet many CIOs and aspiring IT leaders see IT value as a function of organisational or IT maturity, relying on capability maturity models (CMM) to demonstrate value by looking ‘internally’ within the IT function. Instead, contemporary savvy IT leaders must look for alternative models that explain the organisational context external to IT itself and use that to align services that will be valued now such as the “IT Hierarchy of Needs”1.