It’s a question I hear often when speaking with companies across the globe: Does cloud computing spell the demise of the CIO and IT department?
The short answer: No. The longer, more complicated answer: The cloud will force IT leaders and their organizations to fundamentally change what they do (and don’t do), how they work with other departments, and what skills they bring to the table. The upside is tremendous for those who adapt; the downside is perilous for those who don’t.
As a CIO for part of my career, I struggled with how to define this critical leadership role and how my organization should support other business departments.
Driven to some extent by the technologies available at the time, and the general view that “my organization is different and special,” most of my peers sought to create “best-in-class” IT solutions. But that approach introduced unnecessary costs, and it slowed—even paralyzed—their ability to effect real change.
I viewed and continue to view the CIO position as less about overseeing IT strategy and managing computer systems and more about leading as a “business enablement officer.” I define the BEO as an “executive whose #1 priority is to propose, enable, and future-proof the business through the use of cost-effective technologies that deliver value and innovation to its customers and employees.”
A Modicum of Secret Sauce
What does this mean for the traditional IT department in a cloud world?
Unless an IT system is indeed providing a mission critical and core capability for the business, there is very little, if any, justification for an IT organization to develop or customize that system. This general rule applies to HR, payroll, supply chain, procurement, performance management, sales, marketing, customer service, and other types of business process software typically viewed as “special” by their enterprise IT keepers. In this context, the “core” functionality is so unique to the business that it provides a “secret sauce” not available in off-the-self software.
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