From where I sit as a long-time CIO, the answer is "both". The higher function is creating business value, but you cant really do that unless you have an efficient IT shop. The question also highlights the challenges that the modern CIO faces when putting together a strategy to support the business needs and goals of the company.
Ive had the opportunity recently to work with a company that has business units scattered throughout the country. The IT function is doing a decent job of keeping the lights on and the essential business technology up and running reliably. However, in talking to the CEO, hes frustrated that he cant get the kind of information he needs to make decisions. Basic information is buried in a multitude of reports and has little value when decisions need to be made quickly. The data that management needs is unorganized and not readily available. Yet, the IT shop is efficient theyre just not providing much value as far as management is concerned.
The biggest challenge here is getting the business unit managers to define their key performance indicators (KPI) in ways that allow them to be measured. Thats where the CIO role begins to diverge from efficient technology management and begins to go down the road of business value creation. The CIO in this situation is almost a consultant to the other business unit managers. He or she helps define the business unit information needs and then utilizes technology resources to deliver those morsels of good data to the right people at the right time.
Its bit like driving a car, you have gauges that tell you how fast youre going, how much fuel youre using, an odometer to tell how far along you are and a GPS to let you know if youre going in the right direction ― and to let you know when youre off course. Getting the readouts on the dashboard right is absolutely critical or youre going to blow up the car or wind up in the ditch or run out of gas. The CIO is the guy that makes sure that the data from every part of the business engine gets to the right set of eyes so adjustments can be made based on as complete a set of information as possible.
Can all this be done without an efficient IT organization? Probably not. Thats why the CIO also has to make sure that he keeps his organization well tuned and running at its best. The CIO has to use all the resources he has to make sure that the business value is continuously created while at the same time keeping the IT shop in tip-top shape. This is a delicate balancing act but one that a good CIO does every day.
Mike Scheuerman is an independent consultant with more than 26 years experience in strategic business planning and implementation. His experience from the computer room to the boardroom provides a broad-spectrum view of how technology can be integrated with and contributes significantly to business strategy. Mike can be reached at firstname.lastname@example.org.