CIOs as Decision Makers

Bangalore: Growth rates are higher at companies where the CIO is included in the highest decision-making bodies according to a report by Penteo and ESADE.

The report describes a strong correlation between the inclusion of the chief information officer (CIO) on the management committee, in one hand, and the company's ability to grow in times of crisis and satisfaction with IT spending, on the other. Among companies that include CIO in the highest decision-making bodies, the percentage that is experiencing growth is twice the ‘across-the-board’ average. Likewise, a company is six times more likely to be satisfied with its IT investments if its CIO sits on the management committee.

The reasons are obvious: companies that keep their CIOs in the decision-making loop are more convinced of the importance of ICTs; therefore, they view investments in technology more favorably. Additionally, when the CIO is on the management committee, he or she is more involved in strategic decisions and can propose initiatives proactively and more diligently.

The top executives were also asked about their CIOs' best contributions to the struggle against economic crisis. The report finds that CEOs believe that their CIOs have helped increase process efficiency while containing IT costs. Company leaders are generally satisfied with the performance of their IT departments during the crisis, but they view this contribution as mainly tactical.

Innovative CIOs
The report ends with an analysis of the CIO role, in particular the ways in which CIOs can transcend technology to become business leaders. The report also notes, however, that CIOs are the "technology champions" of their companies and that, especially in today's fast-changing world, they must act as technology radar, innovation generator and new-growth-opportunity detector.

This new role, "CIO 2.0", comprises traditional responsibilities in addition to the creation of new revenue streams. In short, today's CIOs must use their influence to transform their companies by means of co-creative innovation with other areas.