Gartner Charts Four Key Principles for a New CIO Manifesto
Bangalore: GartnerÂ’s annual Symposium/ITxpo delivered independent and objective content with the authority and weight of the world's leading IT research and advisory organization, and provided access to the latest solutions from key technology providers. The Symposium was held in Mumbai from November 21- 23. While CIOs seem to wrestle continued economic turmoil and trying hard to keep the enterprise running, Gartner has come up with a few principles that CIOs should put in use to make it simpler and easier.
At the ITxpo, Gartner analysts recognized four main principles for a new CIO Manifesto that would transform not just the CIOs and their sectors but benefit the entire enterprises as well. Gartner, Inc. also said that CIOs need to disengage from past processes and ideas and embrace a new policy. Partha Iyengar, Vice President and distinguished analyst at Gartner said, Â“Â“Executives in India and around the world, even in the face of global economic uncertainty, have identified increasing economic and business growth as their highest priority. Since this will demand more from IT organizations than just cutting costs, it is clearly time for CIOs to embrace a new CIO manifesto that will declare how generating revenue must become a new and central component of their IT organizationÂ’s mission for the rest of this decade and beyond.Â”
The four chief principles of the CIO Manifesto include:
Principle No. 1: Information is Just as Important, if not more Important than Information Technology
Enterprises, these days, are spawning an unparalleled quantity of information of enormous variety and intricacy. The need to control this data for better commerce value is leading to a change in data management strategies known as Â“big dataÂ” creating a Â“Pattern-Based Strategy architectureÂ” seeking signals in the information, sculpts them for their impact, and then acclimatizes to the business process of the organization.
Principle No. 2: By 2016, more than 50 Percent of Annual CIO Project Spending will be Aimed at Measurably Improving the Financial Conditions of an Enterprise
Most often, CIOs and IT professional cannot enumerate the business value that information and IT delivers to an enterprise. It is uncertain that the financial profits of a large percentage of new IT projects could be reviewed and calculated for the financial benefit they have brought to an enterprise. Project sponsors inept of foretelling where the financial benefits will emerge but who obtain project approval will have their projects so designated.
Principle No. 3: Â By 2020 more than 50 percent of all Enterprise Information and IT Spending will Directly Support Revenue-generating rather than Expense-related Business Processes.
The majority IT applications for the past few decades have first and foremost and mostly sustained business processes associated to the expense side of an income statement. CEO survey results point to the high precedence of organic business growth. CIOs must lead their workforce to recognize how information and IT can promote organic income growth of existing and/or new products and services.
Â Principle No. 4: The Incentive Portion of CIO Compensation will be Derived from the Amount of Money Created by the Efforts of CIOs and their Staffs.
CIOs wanting an enduring and stable position at strategic planning tables must be keen on taking the same types of risk-reward compensation circumstances crafted for the CEO, head of sales and other senior executives. CIOs who can adapt information into new savings and new revenue and IT into cost savings will have little obscurity with such a compensation scenario.
Mr. Iyengar said that the time really has come to confront the most frequently held IT organization, operations and leadership beliefs as becoming a Â‘money-making CIOÂ’ entails testing the efficiency of all existing IT business practices. Â“For the next two years, business-initiated requests for new IT projects should only be undertaken if they yield measurable and auditable financial benefits for the enterpriseÂ”, he said.
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