Stay on Top of Enterprise Technology Trends
Get updates impacting your industry from our GigaOm Research Community
Three years ago, Gartner predicted that by 2017, the CMO (chief marketing officer) would spend more on IT than the CIO. This one prediction spurned a number of follow-up predictions pointing toward the end of the CIO. The bottom line that everyone wants to know: Is the CIO role indeed going away? Is another c-level function replacing the CIO? And if so, who will take over the IT function?
Changes affect the entire IT ecosystem
It is not just the CIO and IT organization that are affected by a potential realignment of the IT function. Any change would have significant ramifications from people to vendors to architectures. No aspect of IT would be spared.
If IT were to go away or otherwise move to a different organization (or organizations), it would have a significant impact on how we think, operate and support the IT ecosystem. The focus would move to the immediate problem being solved for. However, the CIO and IT as a whole carry a broader responsibility that spans the entire enterprise.
The $64,000 question: What happens to the CIO & IT?
Before answering those looming questions, it is important to see the trends that drove these predictions. Looking back, there is absolutely a decline in IT demand. Specifically, demand for Traditional IT is in decline.
At the same time, the demand from marketing is stronger than ever. So, it makes sense that some of the waning demand may be transferred to marketing.
Unfortunately, this only tells part of the story. If the story were to stop here, it would be easy to understand the logic behind the CMO taking over IT. As demand for the traditional CIO wanes, the CMO picks up and carries the function forward. The reality is this is only a very small part of the overall movement underway.
Transformational CIO on the upswing
The transformational CIO, unlike the traditional CIO, is in high-demand. In many cases, organizations do not understand what this means or what a transformational CIO looks like let along what they are capable of. A transformational CIO, unlike traditional CIO, is far more aligned with the business of the company. They are in-tune with how the company makes and spends money. They also look for opportunities around customer engagement and business growth. Transformational CIOs are more about business and data than they are about technology. In many ways, the transformational CIO is a business leader (first) that happens to have responsibility for IT.
Mapping the transformational CIO along with the traditional CIO and CMO brings the true picture into focus.
One of the biggest challenges for transformation to take place requires all three components come together: The CIO, the IT organization and the rest of the company in terms of how they look at, leverage and engage IT. This evolution is referred to as the CIO’s Three-Legged Race.
One unfortunate point to make is that few traditional CIOs will have the mettle to truly transform into transformational CIOs. It can be done, but requires a level of intestinal fortitude well beyond that of many CIOs today.
Reporting structure for the CIO
Much of the change will come from the reporting structure of the CIO. Traditional IT organizations are often seen as a cost center and therefore report into the CFO. Transformational CIOs typically report directly to the CEO signaling the importance of IT (and the CIO) in leading the company. Consequently, a CIO reporting to the CMO may make sense temporarily, but not long term. The CIO’s prevue needs to be both broader and more strategic than any one function.
Every CMO I spoke with is not interested in taking on the IT responsibility. They are today, because they have, not because they want to.
The CIO is just getting started
Taking all of this into account, the role of the CIO is only starting to expand in ways it rarely has before. The same goes for IT. Sure, it may leverage a strong relationship with the CMO today. That is a very good thing! But it will evolve into a more impactful role that truly fills the qualifications for a seat at the CEO’s table.