Today, there is a need for IT to enable
business innovation. An ideal
CIO is not only accountable for IT function success and business process
transformation, but also adopts a more proactive company-external focus and
concentrates on using IT to drive innovation and strategic advantage in
pursuit of stretch business goals.
To work effectively with the rest of the organization and enable
business innovation. CIO needs to develop an environment within the IT
function that is conducive to innovation. IT function should aim to help the
business to use new technologies to transform business strategies and
processes, and should proactively develop and scan the marketplace for
innovative solutions that can create breakthrough business value.
To help the company invent and develop new business models, CIO must find
the right
balance
between two key roles: Operator and Innovator. Finding this balance is often
challenging. The Operator role is concerned with business continuity,
service quality, and cost containment, while the Innovator role focuses on
creating breakthroughs, sustainable competitive advantage, and new revenue
streams. Though these roles have somewhat conflicting drivers, the CIO can
and must master and synergize them to help the company achieve long term
success.
Operational effectiveness and understanding the business are a precondition
of being allowed to innovate and create new business value by doing
something new with IT. These business innovations may include technology
infrastructure improvements, business process improvements. and new
products, services, and channels.
By enabling the business to capitalize on the combination of
efficiency-improvement technology and radical innovations, the CIO can turn
the IT function into a great strategic business innovation tool for the
company.
Discover much more
in the mini-course
New Business Models
