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The role, skills and responsibilities of CIOs in
Multinational Corporations
The Role of ICT in Globalization and Development of Network Society
Network Society Research Center
Seminar - 2005/06/07
Bertrand Leneveu
Contents
I. Introduction
II. The roles and the responsibilities of a CIO
III. The type of person and the skills required for a CIOa. Technical skills
b. Planning, managing skills and leader ship
c. Business leaership
IV. Criteria for a successful CIO
V. Recommandations in managing IT in MNCSA study case: Cisco Systems
a. Background
b. Cisco Systems’ strategy
c. Cisco Systems’ CIO’s roles and attributes
d. Conclusion
Introduction
• CIO: Chief Information Officer
• A rather new kind of job with an increasing demand
• Concerns big enterprises as well as medium-sized companies
• A complex role which has to be explained and clarified
I. IntroductionII. The roles and the
responsibilities of a CIOIII. The type of person and the
skills required for a CIOa. Technical skillsb. Planning, managing
skills and leader shipc. Business leadership
IV. Criteria for a successful CIO
V. Recommandations in managing IT in MNCSA study case: Cisco Systems
a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s
roles and attributesd. Conclusion
The roles and responsibilities of a CIO
• In the past years the roles and responsibilities of the CIOs have been ambiguous
• The role of the CIO is changing in profound ways as IT and the business become impossible to separate
• Now, CIOs must take the lead in interpreting the emerging digital economy
Leaders with good communication skills
I. IntroductionII. The roles and the
responsibilities of a CIOIII. The type of person and the
skills required for a CIOa. Technical skillsb. Planning, managing
skills and leader shipc. Business leadership
IV. Criteria for a successful CIO
V. Recommandations in managing IT in MNCSA study case: Cisco Systems
a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s
roles and attributesd. Conclusion
http://www.cio.com/archive/100104/hs_verdict.html
The roles and responsibilities of a CIO
A CIO should be ...
• A leader : - good information sharing - resource management - vendor management - contract negotiation
• An information resource : - collecting and distributing information - looking for new developments - watching what competitors are doing - value information for business strategy, developing plans, and business process
Business strategies
I. IntroductionII. The roles and the
responsibilities of a CIOIII. The type of person and the
skills required for a CIOa. Technical skillsb. Planning, managing
skills and leader shipc. Business leadership
IV. Criteria for a successful CIO
V. Recommandations in managing IT in MNCSA study case: Cisco Systems
a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s
roles and attributesd. Conclusion
The roles and responsibilities of a CIO
• An IT marketplace interpreter : - Helps senior executives understand the potential impacts of market events on the company • A business strategist : - develop a long-range of actions to align with the organization vision - identify and exploits opportunity for new products, services, and markets - change challenge May bring change or even revolution for the whole organization
I. IntroductionII. The roles and the
responsibilities of a CIOIII. The type of person and the
skills required for a CIOa. Technical skillsb. Planning, managing
skills and leader shipc. Business leadership
IV. Criteria for a successful CIO
V. Recommandations in managing IT in MNCSA study case: Cisco Systems
a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s
roles and attributesd. Conclusion
The roles and responsibilities of a CIO
• A technologist : - make decisions about what IT capabilities the
organisation needs - architect capabilities - find out the relationship between new
technique and the business goals
• Tomorrow’s CIO may be more involved in decision making
I. IntroductionII. The roles and the
responsibilities of a CIOIII. The type of person and the
skills required for a CIOa. Technical skillsb. Planning, managing
skills and leader shipc. Business leadership
IV. Criteria for a successful CIO
V. Recommandations in managing IT in MNCSA study case: Cisco Systems
a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s
roles and attributesd. Conclusion
http://www.01net.com/article/218483.html
The type of person and the skills required for a CIO
Technical skills
• Strong technical background
• Predominant skill during the 90’s
• As important as others skills now
• Be aware of last researches
• IT changes a lot
• Proactive skills to foresee the future in IT
I. IntroductionII. The roles and the
responsibilities of a CIOIII. The type of person and
the skills required for a CIO
a. Technical skillsb. Planning, managing
skills and leader shipc. Business leadership
IV. Criteria for a successful CIO
V. Recommandations in managing IT in MNCSA study case: Cisco Systems
a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s
roles and attributesd. Conclusion
http://www.optimizemag.com/article/showArticle.jhtml?articleId=53701400&pgno=1
The type of person and the skills required for a CIO
Planning, managing skills and leadership
• Plan projects– Respect the delay– Do not exceed the budget
• Teamwork
• Negotiation skills– Example 1 : argument between 2 employees– Example 2 : convince the business unit
• Team leader– The whole team must be satisfied– Manage the department
I. IntroductionII. The roles and the
responsibilities of a CIOIII. The type of person and
the skills required for a CIO
a. Technical skillsb. Planning, managing
skills and leader shipc. Business leadership
IV. Criteria for a successful CIO
V. Recommandations in managing IT in MNCSA study case: Cisco Systems
a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s
roles and attributesd. Conclusion
The type of person and the skills required for a CIO
Business leadership
• CIOs interfere with other departments
• Know the firm very well
• Negotiate IT projects with counterparts
• Weigh the pros and cons for each solution
• Example: information security
CIOs need to understand the business level
Must develop a business leadership
I. IntroductionII. The roles and the
responsibilities of a CIOIII. The type of person and
the skills required for a CIO
a. Technical skillsb. Planning, managing
skills and leader shipc. Business leadership
IV. Criteria for a successful CIO
V. Recommandations in managing IT in MNCSA study case: Cisco Systems
a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s
roles and attributesd. Conclusion
Criteria for a successful CIO
• No miraculous recipe
• Nevertheless, the successful CIO:
– Has a strong knowledge in IT
– Takes care of the environment (financial, human…)
– Is charismatic and pragmatic, being strict but using compromise
– Takes the initiative and risks
– Has a strong sense of organization
– Has a multicultural background
– Has the full support of his hierarchy
I. IntroductionII. The roles and the
responsibilities of a CIOIII. The type of person and the
skills required for a CIOa. Technical skillsb. Planning, managing
skills and leader shipc. Business leadership
IV. Criteria for a successful CIO
V. Recommandations in managing IT in MNCSA study case: Cisco Systems
a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s
roles and attributesd. Conclusion
A Study Case: Cisco Systems
Background
• American based company
• Hardware embedded software• Internal networks
• Leader in manufacturing equipment for all kinds of communications– Voice– Data– Video
• ‘One stop shop’ for an organization’s entire network infrastructure.
• Sells to over 100 countries
I. IntroductionII. The roles and the
responsibilities of a CIOIII. The type of person and the
skills required for a CIOa. Technical skillsb. Planning, managing
skills and leader shipc. Business leadership
IV. Criteria for a successful CIO
V. Recommandations in managing IT in MNCSA study case: Cisco Systems
a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s
roles and attributesd. Conclusion
A Study Case: Cisco Systems
IT Strategy
• Goal: make it easy to do business with the company.
• 3 strategic decisions:– Focus IT on customers:
• IT moves from CFO to Customer Advocacy (takes care of all customer touching services & products).
• Projects which don’t raise customer satisfaction aren’t funded.
– Managers of business units (BU’s) decide WHICH applications to build -> IT decides HOW.
– Creation of an enterprise-wide network & standards. BUs do not have to justify infrastructure investments.
I. IntroductionII. The roles and the
responsibilities of a CIOIII. The type of person and the
skills required for a CIOa. Technical skillsb. Planning, managing
skills and leader shipc. Business leadership
IV. Criteria for a successful CIO
V. Recommandations in managing IT in MNCSA study case: Cisco Systems
a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s
roles and attributesd. Conclusion
A Study Case: Cisco Systems
CIO’s roles and attributes
I. IntroductionII. The roles and the
responsibilities of a CIOIII. The type of person and the
skills required for a CIOa. Technical skillsb. Planning, managing
skills and leader shipc. Business leadership
IV. Criteria for a successful CIO
V. Recommandations in managing IT in MNCSA study case: Cisco Systems
a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s
roles and attributesd. Conclusion
A Study Case: Cisco Systems
CIO’s roles and attributes
I. IntroductionII. The roles and the
responsibilities of a CIOIII. The type of person and the
skills required for a CIOa. Technical skillsb. Planning, managing
skills and leader shipc. Business leadership
IV. Criteria for a successful CIO
V. Recommandations in managing IT in MNCSA study case: Cisco Systems
a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s
roles and attributesd. Conclusion
• Peter Solvik, CIO, has to coordinate efforts in BUs to achieve a company wide information system.
• Advantages:– Centrally managed infrastructure investment– Extensive functional management team
involvement in IT.– CIO measures only if the infrastructure costs
will add more value to the product/service sold/provided.
A Study Case: Cisco Systems
CIO’s roles and attributes
I. IntroductionII. The roles and the
responsibilities of a CIOIII. The type of person and the
skills required for a CIOa. Technical skillsb. Planning, managing
skills and leader shipc. Business leadership
IV. Criteria for a successful CIO
V. Recommandations in managing IT in MNCSA study case: Cisco Systems
a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s
roles and attributesd. Conclusion
• Qualities the CIO must have:– Leadership– Management– Business planning– Technical savvy
• ‘Net ready’ company qualities– Leadership– Governance – Competencies– Technology
A Study Case: Cisco Systems
CIO’s roles and attributes
I. IntroductionII. The roles and the
responsibilities of a CIOIII. The type of person and the
skills required for a CIOa. Technical skillsb. Planning, managing
skills and leader shipc. Business leadership
IV. Criteria for a successful CIO
V. Recommandations in managing IT in MNCSA study case: Cisco Systems
a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s
roles and attributesd. Conclusion
• Conclusion:
– Widely successful strategy, personified by their CIO.
– 80% of business done on-line
– $550 million profit increase in last 5 years
– Raised customer satisfaction by 25%
– Savings of $250 million through the use of the enterprise wide network.
Further reading
• Jerry N. Luftman, “Managing the Information Technology Resource: Leadership in the information age.”, Prentice Hall 2004
• Hartman, Amir & Sifonis, John & Kador, John Net, “Ready strategies for success in the E-conomy”, McGraw-Hill [Computer file edition] 2000
• http://www.cio.com/
• http://www.itworld.com/