What Start - Ups Mean for CIOs?

Bangalore: There is a lot that is being discussed regarding the possible outcomes that would arise because of the association between CIOs and start-ups. Of course one can always turn to the established players in the market to satisfy their ‘technological’ needs…and play safe. But companies that are unrelenting in their approach need not hesitate in undertaking a few risks and experiment with start-ups, the advantages of which will be experienced long term, reports Peter High in Forbes.

"Startups are a good way to experiment at the edges of your priorities and position your company as an innovator," says William Hsu, co-founder of startup accelerator MuckerLabs.

Echoing William’s thoughts, CIO of Pabst Brewing, Ben Haines states, “A lot of startups are not only solving the newest problems out there, and they’re solving them at a faster rate."

One can empathize with their perception considering the pros that result from tying up with start-ups. For instance, CIOs are not only offered reasonable pricing and contracts that are easier to evaluate, but also the implementation process takes place at a much faster rate as compared to a larger/experienced vendor. Moreover, CIOs get to have their say pertaining to the product design and leading-edge technologies.

But there is a flip side of the coin as well. One just cannot shy away from the fact that start-up ventures rarely possess a solid financial backbone. Also, one might complain about the customer service it offers. Lack of integration and co-ordination also adds to the list of cons for start-ups. But the prima facie that usually hinders CIOs from partnering with start-ups is the uncertainty of the life span of these start-ups.

This is where CIOs can come in handy by utilizing their influence and acumen in the advisory boards of these start-ups. They can also help these ventures financially through their numerous contacts as well as contracts. This usually blooms into a give-and-take relationship, where CIOs on one hand ensures the survival of the start-ups while on the other hand, they can cut down on their own costs with the help of better understanding of the portfolios of these start-ups and engaging with them in future projects also.

As CIO Tracey Rothenberger of Ricoh aptly puts," It takes time and direct involvement but if you're truly getting a unique value proposition that you can't get elsewhere, you have to be willing to invest in this stuff."

Are you up for it?