Future of IT: ManagementBy CIOinsight | Posted 12-14-2007
Future of IT: Management
No Downturn for CIO Role, Central IT
The strategic CIO/central IT organization model for IT management will continue to dominate. Some question whether CIOs are strategic or will remain important as other executives grow more knowledgeable about IT. Others doubt that a strong, central corporate IT function will remain necessary as software services gain ground, and a generation raised on computers enters the workforce. But IT executives will have none of that. They strongly believe that the CIO role will grow more important, not less, even if more CIOs report to CFOs, and that the IT function will grow more centralized. Companies will need CIOs and IT organizations that can oversee one of the most complex functions in business.
Next page: CIO Role Becomes More Demanding
CIO Role Becomes More
CIO Role Becomes More Demanding
CIOs must excel at strategy and operations. CIOs believe setting strategy, innovation and finding new ways to exploit information will become a more important part of their role. They're right, but CEOs and CFOs also expect them to succeed at building high-performing IT organizations, completing projects successfully and working well with other functions. That means CIOs must be masters of strategy and operations management. Since CIOs who can do it all are hard to find, companies will continue to increase CIO compensation, particularly bonuses. Total compensation rose 12.4 percent from 2006 to 2007 and is unlikely to drop even if the economy sours.
Next page: IT's Metamorphosis Continues
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IT's Metamorphosis Continues
IT organizations keep undergoing major changes but they're not all changing in the same way. Many companies, especially larger ones, will change by staffing up in management and planning roles while relying more on outside technical help. These firms will spend more on salaries to attract IT talent while underinvesting in training and development. Small and midsize companies are more likely to use open source software, hire developers, tech support and project managers, and expand the skills of their IT staffs. A big question for 2008 is whether an economic slowdown will put a hold on these plans or accelerate them. Project managers may be vulnerable if projects are cut, even though they have been in demand; staff for insourced functions may be safe.
Next page: Tech Grad Shortage Changes the Face of IT
Tech Grad Shortage Changes
the Face of IT">
Tech Grad Shortage Changes the Face of IT
CIOs expect fewer young people to enter the IT profession, and say half of those who graduate with IT and computer science degrees aren't well prepared. At the same time, they think IT organizations will grow. How to square this circle? Offshoring junior technical roles are one way but another is to import technical staff. Most IT executives believe the hiring of H1B visa holders will increase. IT organizations and vendors will try to attract college grads, minorities and women to IT, but there will be no quick turnaround.
Next page: IT Outsiders Provide Inspiration
Outsiders Provide Inspiration">
IT Outsiders Provide Inspiration
Innovative IT organizations look to consumers, youth and leading users for new ideas. Many of the best ideas for using IT come from outside the IT organization, and IT executives who are early adopters of IT know it. These companies work closely with other business executives when they look into new ways to use technology. They also watch how consumers and young people use and play with technology. While some CIOs are preoccupied with process improvement and cost cutting, or worrysometimes unreasonablyabout departmental control and security issues, these IT executives consider social networks an R&D lab for collaboration and management innovation.
Next page: Master Data Management Expands
Master Data Management Expands
Master Data Management Expands
Data integration remains a top priority, with data quality one of its most enduring obstacles. Many companies are instituting master data management programs that attack the most fundamental aspects of the data-quality problem: inconsistency and management inattention. Difficult as the work can beimproving data management is a slow and painstaking jobthese programs pay off, especially with high-priority technologies like business intelligence that rely on a steady stream of high-quality data. Expect to see more companies invest in these programs.