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.
About The Advisor
Sam Higgins was an IBRS advisor between 2017 and 2020 with over 20 years of both tactical and strategic experience in the application of information and communications technology (ICT) to achieve business outcomes from large complex organisations. Through previous roles as a leading ICT executive, strategist, architect, industry analyst, program consultant and advisor, Sam has developed an extensive knowledge of key markets including as-a-Service (Cloud) computing, enterprise architecture (including service-orientation and information management), enterprise applications and development, business intelligence; along with ICT management and governance practices such as ICT planning, strategic sourcing, portfolio and project management. Sam’s knowledge of service-oriented architecture and associated business models is widely recognised, and he was a contributing author on the Paul Allen book Service-orientation: Winning Strategies and Best Practices, released in 2006 by Cambridge University Press. As the former Research Director for Longhaus he undertook the first in depth research into the implications of cloud computing and other “as-a-Service” ICT offerings on the Australian and near shore markets. The 2010 report entitled, Defining cloud computing highlights provider gaps in the Australian ICT market, was widely reported in both the online ICT industry press and mainstream media.