Observations
When developing, then internally selling an ICT strategy, many CIOs tend to place too much emphasis on technology. Even when working with senior users, it may be difficult to transcend discussions on problems or opportunities without immediate reference to the technology.
The Organisation – as Seen by the CEO and Board
One aspect of examining the role of the CIO is to see the organisation juxtaposed against its ecosystem. The CEO and the board must consider the organisation and its strategies. Here are the factors that CIOs should be thinking about:
| Factors | Description |
| Customer behaviour and influences | To have the interest of the majority of the board, consider how customers can be at the core of the organisation. What influences are emerging that may affect customer behaviour? What channels can be used to gain greater customer intimacy? How can we foster life-long relationships with customers? Do we have sufficient information about buyer behaviour? What is our reputation in the market? Are we receiving referrals from satisfied customers? |
| Business sector | Where do we stand relative to our competitors? Who is gaining, and who is losing market share? Why? What takeover activity is afoot, and how is it likely to play out in the marketplace? What inspiration, if any, can be gained from innovations used in other business sectors? Which systems do competitors use? How much are they spending on IT? |
| Supply chain | Are supply chain inefficiencies costing us money? Where are bottlenecks occurring? Are alternative channels available? Can the supply chain be re-engineered? |
| Economic and geopolitical indicators | What are the macroeconomic indicators, now and forecast? Are any of them likely to have a positive or negative impact on the organisation? What should we do about it? Will geopolitical impacts affect customer behaviour and/or the supply chain? ESG? |
| Productivity and efficiency | How will AI impact staff and roles? How can they prove the return on investment (ROI) of tech? What will the future look like for work (hybrid, remote, etc.)? |
| ICT operational excellence | How can costs be kept low? Should they adopt Agile? How does ICT align to meeting the above business objectives? |
| Risk | How is ICT securing client data, mitigating risk, information protection, etc.? |
What Drives the Organisation?
In their book “The Discipline of Market Leaders”1, Michael Treacy and Fred Wiersema argue that successful organisations focus on just one of three disciplines. These are:
| Disciplines | Description |
| Operational excellence | This notion is founded upon establishing an organisation that focuses relentlessly on business efficiency. Such organisations are thus positioned to offer their customers predictable and reliable services at low prices. A US example is Walmart. In Australia Woolworths (which has modelled much of its operational philosophies on Walmart practices) serves as an exemplar. |
| Customer intimacy | Denoted by an outstanding customer service experience such as is commonly ascribed to the Australian retailer David Jones. |
| Product/service leadership | In which the primary reason for making a purchase is perceived product superiority. Companies that exemplify this category include Apple, Nike, and 3M. |
Whilst it is possible for an organisation to build competencies in each of the three disciplines, no organisation can achieve success trying to excel in every aspect of its operation. The key is in having a laser-like focus, aiming to excel in just one of the three value disciplines. For the CIO, this may mean gaining an understanding of the organisation in a new light. From this understanding, strategies can be developed that synchronise with the organisation’s direction.
Checklist for CIO Strategic Decision-Making
Below is a sample checklist for CIOs when forming answers for the board on the five factors mentioned above.
| Factors | Possible Solutions | How could you discuss this idea with other executives? | Would this be worthwhile for a technology project? |
| Customer behaviour and influences | Implement advanced data analytics to gain deeper insights into customer behaviour.
Develop personalised marketing strategies based on predictive analytics. Leverage social media listening tools to monitor and respond to customer sentiment. |
Emphasise the potential for increased customer satisfaction and loyalty through data-driven insights.
Highlight the impact on sales and revenue growth through personalised marketing strategies. Collaborate with the Chief Marketing Officer (CMO) to align technology initiatives with marketing goals. |
It directly impacts customer satisfaction and revenue growth.
Requires investment in data analytics tools and AI technologies. Potential for a significant ROI. |
| Business sector | Explore emerging technologies relevant to the industry, such as the internet of things (IoT).
Enhance cyber security measures to protect against industry-specific threats. Collaborate with industry peers on innovation initiatives. |
Emphasise the need to stay competitive through technology adoption.
Discuss the potential risks of falling behind in adopting new technologies. Engage with the Chief Operating Officer (COO) or industry-specific executives for support. |
It ensures competitiveness and resilience in the industry.
Investment required in technology research and cyber security measures. Collaboration may lead to shared resources and cost savings. |
| Supply chain | Implement tools for transparent and efficient supply chain tracking.
Use predictive analytics to optimise inventory management. Explore automation and robotics for warehouse operations. |
Highlight cost savings and reduced risks with new technology adoption.
Emphasise improved supply chain efficiency and reduced operational costs with analytics. Collaborate with the Chief Supply Chain Officer (CSCO) to align technology initiatives. |
It can lead to cost savings, efficiency improvements, and risk reduction.
Investment required in technology, analytics tools, and automation systems. Potential for significant ROI in terms of supply chain optimisation. |
| Economic and geopolitical indicators | Develop real-time data monitoring systems for economic indicators.
Implement geopolitical risk assessment tools. Diversify suppliers to mitigate geopolitical risks. |
Discuss the impact of economic and geopolitical instability on business operations.
Highlight the potential for proactive risk mitigation and cost savings. Collaborate with the Chief Financial Officer (CFO) and Chief Risk Officer (CRO). |
It ensures business continuity and risk management.
Investment required in data monitoring systems, risk assessment tools, and supplier diversification efforts. Critical for long-term resilience and mitigating disruptions. |
Next Steps
CEOs want CIOs to be more strategic and adventurous in their use of technology. Until those gaps are bridged or at least narrowed, CEOs will diminish the work done by CIOs even though technically proficient services may be delivered by them.
- CIOs are urged to set aside at least 20 per cent of their time, distancing themselves from day-to-day, technology-related issues to focus on the organisation as the CEO and board do.
- Having seen the organisation as the CEO does, explore possible solutions in the same manner, casting technology aside for the present, other than at the most abstract level.
- Work through any ideas and candidate business solutions with other senior executives seeking their feedback and support.
- Having carried out the preceding steps, only then is it really valid to put a technology construct around exploring some of the available options.
'%3e%3cg%20id='Final-Copy-2_2_'%20transform='translate(1275.000000,%20200.000000)'%3e%3cpath%20class='st0'%20d='M7.4,12.8h6.8l3.1-11.6H7.4C4.2,1.2,1.6,3.8,1.6,7S4.2,12.8,7.4,12.8z'/%3e%3c/g%3e%3c/g%3e%3c/g%3e%3cg%20id='final---dec.11-2020'%3e%3cg%20id='_x30_208-our-toggle'%20transform='translate(-1275.000000,%20-200.000000)'%3e%3cg%20id='Final-Copy-2'%20transform='translate(1275.000000,%20200.000000)'%3e%3cpath%20class='st1'%20d='M22.6,0H7.4c-3.9,0-7,3.1-7,7s3.1,7,7,7h15.2c3.9,0,7-3.1,7-7S26.4,0,22.6,0z%20M1.6,7c0-3.2,2.6-5.8,5.8-5.8%20h9.9l-3.1,11.6H7.4C4.2,12.8,1.6,10.2,1.6,7z'/%3e%3cpath%20id='x'%20class='st2'%20d='M24.6,4c0.2,0.2,0.2,0.6,0,0.8l0,0L22.5,7l2.2,2.2c0.2,0.2,0.2,0.6,0,0.8c-0.2,0.2-0.6,0.2-0.8,0%20l0,0l-2.2-2.2L19.5,10c-0.2,0.2-0.6,0.2-0.8,0c-0.2-0.2-0.2-0.6,0-0.8l0,0L20.8,7l-2.2-2.2c-0.2-0.2-0.2-0.6,0-0.8%20c0.2-0.2,0.6-0.2,0.8,0l0,0l2.2,2.2L23.8,4C24,3.8,24.4,3.8,24.6,4z'/%3e%3cpath%20id='y'%20class='st3'%20d='M12.7,4.1c0.2,0.2,0.3,0.6,0.1,0.8l0,0L8.6,9.8C8.5,9.9,8.4,10,8.3,10c-0.2,0.1-0.5,0.1-0.7-0.1l0,0%20L5.4,7.7c-0.2-0.2-0.2-0.6,0-0.8c0.2-0.2,0.6-0.2,0.8,0l0,0L8,8.6l3.8-4.5C12,3.9,12.4,3.9,12.7,4.1z'/%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e)
Your Privacy Choices