1. Presented by: Richard L. Routh, Ph.D.

2.  1960’s: ◦ A priesthood that was kept at arm’s length by business people ◦ Not much understanding of how to use computers for business advantage ◦ Used for tasks such as Payrolls ◦ The top IT person was called the “head of DP” ◦ DP people were stereotypically viewed as “techno- nerds”

3.  1970’s: ◦ Beginning of emergence of mainframe computers as business systems ◦ The term “Information Systems” was born (Emphasis on “S” in “IS”) ◦ The top manager was now called “IS Manager” Almost all “IS Managers” used to be programmers ◦ Still kept at arm’s length by most business people

4.  1980’s: ◦ Emergence of PCs  At first just a novelty  Then spreadsheets and PC-based word-processors appeared  Then creative folks began to demonstrate that PCs could be used for real business needs ◦ One MIS Manager said, “I wish I could kill these PCs. They spread like Kudzu.” ◦ Some PCs were networked with others in the office, but most were standalone ◦ An understanding of how to use PCs for business advantage began to emerge

5.  Early 1990’s: ◦ The internet began to emerge as something—but no one was sure what ◦ Email started catching on in business as a required business tool ◦ Most white-collar people had a PC ◦ The head IT person was called the “IT Director” (Emphasis on “I” in IT) ◦ People started to realize that interconnectivity could give them some significant business advantages

6.  Late 1990’s: ◦ The internet was seen as a global library and also as billboards in cyberspace ◦ Email entrenched as a required business tool ◦ All white-collar people had a PC or laptop or both or several ◦ IT was now seen as a strategic business force (no longer a tool) ◦ Head IT person was now a “CIO”

7.  2000’s: ◦ Increasing number of CIO’s not coming from IT ◦ Increasing number of CIO’s becoming CEO’s ◦ Increasing reliance on CIO’s to be strategic business champions

8.  Commoditization of IT  Sourcing  IT Architecture & Infrastructure  InfoSec  The business justification imperative  The CIO as THE LEAD strategic business planner/champion for the corporation

9.  Some commodities: ◦ Nails ◦ PCs? ◦ Gasoline ◦ Electricity  Nicholas G. Carr’s article in May 2003 HBR: “IT Doesn’t Matter” ◦ IT is like electricity—important, but a commodity ◦ You don’t need a “Chief Electricity Officer” so why do you need a CIO?

10.  The general consensus on the “Is IT a commodity?” debate: ◦ IT infrastructure may well be:  Network connectivity  Desktops/laptops/servers  Services like internet and email  Programming services?  What else?

11.  But the strategic business advantage that comes from innovatively employing IT is not a commodity ◦ Strategic business applications ◦ Sales and client data (How you collect it, what you do with it) ◦ Internet marketing, sales and service strategies ◦ These are the indispensable competitive business levers of our time

12.  Trend toward requiring all IT initiatives to have solid conservative ROI estimates  Holding feet of CIO to the fire to deliver the projected ROI  Gives rise to new corporate governance models ◦ Ownership of business units ◦ Funding from non-IT budgets ◦ CIO must speak and think like a business executive  CIO must also champion the creation of strategic solutions (Why?).

13. - The CIO must be a politically skilled team player - Integrated into the social milieu of the executive team - Politics is important - Must understand all aspects of the business (marketing, sales, production, customer service, financials, legal, etc.) - Never, never, never utters techno-ese in the presence of non-IT people - Champion the strategic planning for the business - No wonder more and more CIOs are rising to the CEO chair

14.  Be familiar with technology issues (as an important background), but  Become an expert at strategic business analysis and how IT can be leveraged to gain optimum business impact  Develop the business skills and the communication skills to make it happen.