Synopsis: The CIO is primarily responsible for crafting the overall technology strategy and IT infrastructure of an organisation. The focus is on ensuring that technology supports day-to-day business operations and long-term objectives and is primarily internally focused, dealing with IT systems, applications, network and data management, with the goal of using technology as an enabler for the organisation.
The chief information officer (CIO) plays a critical role in an organisation. But as digital technologies gain traction, there are questions about how the role intersects other digital-facing CXO roles such as CDOs and CTOs.
Let us start by understanding what a CIO does. Umesh Mehta, President, Governing Body of CIO Klub, says the profile plays a critical role in leveraging technology to achieve the organisation’s business objectives and maintain a competitive advantage in the digital age. The CIO is primarily responsible for crafting the overall technology strategy and IT infrastructure of an organisation. The focus is on ensuring that technology supports day-to-day business operations and long-term objectives and is primarily internally focused, dealing with IT systems, applications, network and data management, with the goal of using technology as an enabler for the organisation, he says.
The responsibilities of the CIO encompass IT strategy, technology governance, IT infrastructure, digital transformation, innovation, emerging technologies, budget and resource management, security and risk management, data management, partner relationship management, leadership, team management, communication and collaboration across the organisation, and ensuring compliance with regulatory requirements, Mehta adds.
CIO versus CDO versus CTO
Rahul Shah, Co-Founder & Director, WalkWater Talent Advisors Private Limited, says the shift of the CIO from being a technology expert to also being a business strategist has arguably been more dramatic than other C-suite-level role transitions.
Another profile that has come up in top-level tech functions is the chief digital officer (CDO). The difference between a CIO and CDO is that the CIO is mostly an inward-looking tech role, whereas the CDO is an outward-looking business function. But both roles are important, one to ensure continuity and the other to lead change.
“With the onset of the 21st century, we began to hear of a chief digital officer (CDO). In the first decade of the millennium, there were less than a dozen CDOs worldwide. By 2010, there were around 50 such executives globally. In 2017, a study by PwC found that there was a CDO position in approximately 19% of top global companies; more than 60% of these had been hired since 2015. With organisations of every type now aspiring to go digital, the CDO role is well and truly established as an important executive position that is expected to drive the transition to digital,” Shah says.
In his view, the main role of a CDO is to organise and drive value from information or data assets, and use it to extend decision support and make the company AI-ready. The CDO leads business transformation in the organisation, cutting across functions and departments.
An organisation’s tech army gets further support from the chief technology officer (CTO).
Mehta says a CTO is externally focused and technology-centred, leading the development and implementation of new technology or products. This profile primarily concentrates on leveraging technology to create products for sale. The CTO is often responsible for research and development (R&D), innovation, technical product strategies, technological vision and product development, emphasising a product-centric approach. In contrast, the CIO is more accountable for day-to-day business operations, networking, IT strategy and infrastructure. They ensure that technology functions as an enabler for the organisation.
What are typical skill sets good CIOs need to have?
The President of the Governing Body of CIO Klub has a list of skill sets for a CIO: technology expertise, business acumen, leadership skills, strategic thinking, innovation, effective communication, project and program management, risk management, data management and analytics, partner management, change management, cybersecurity proficiency, financial acumen, knowledge of regulatory compliance, and an understanding of sustainability and environmental responsibilities. “Customer focus is crucial, as is agility and adaptability. Additionally, problem-solving and critical thinking skills, ethical leadership, networking abilities and industry knowledge are paramount. An exemplary CIO is not only a technology expert but also a strategic leader who can bridge the gap between technology and business,” he says.
In smaller or medium-sized enterprises (SMEs), CIOs often require hands-on technical expertise, given the smaller IT teams and budgets. On the other hand, in large enterprises, a CIO’s role tends to be more strategic, focusing on enterprise-wide IT strategies, governance and transformation initiatives, which may involve managing complex change management and legacy systems. Some industries have specific regulatory compliance requirements that impact the responsibilities of CIOs.
Rise of the chief digital and information officer
Instead of having a CIO and a CDO, Shah says many organisations are now opting to have a chief digital and information officer (CDIO). A simplistic way of understanding this role is that it is responsible for “keeping the lights on” as a CIO and also driving digital transformation as a CDO.
“Based on our experience of finding the ideal CDIO’s for our clients, these are the foremost skill sets: ability to find the perfect balance between business ambitions and tech abilities, mindset to build and empower a team that can act as change management agents, an appreciation and acknowledgement of the importance of security issues and dovetail cybersecurity measures into all initiatives, sense of curiosity to learn and experiment with new things, capacity to build and execute on a transformational digital road map,” he says.
The ability to influence the senior leadership is the most important competency a CDIO must have. Traditionally, the CIO role was looked at as a cost centre and often reported to the CFO. The CDIO, he adds, would report to the CEO, with deliverables aligned to overall business goals instead of being solely limited to financial metrics.
Source: The Economic Times