By Gemma Simpson, 17 July 2007 12:54
NEWS
CIOs need to start second-guessing how a company will grow to help the business develop, according to analyst house Gartner.
IT chiefs and tech departments must also think cost-effectively and contribute more directly to the business "to remain relevant", according to a Gartner report.
Gartner vice president Dave Aron said CIOs must understand where the planned and likely growth will come from, and ensure IT assets can accommodate each area of growth.
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Aron added there are opportunities for CIOs to take a greater part in enterprise top-line growth and said CIOs must focus on "exploiting these opportunities just as a venture capitalist makes investments" by applying scarce IT assets, staff and resources based on value.
The Gartner Executive Programmes report The Seven Levers of Growth recommended four ways for CIOs to gear up for growth, including clarifying how the business will grow and where IS should contribute, building up business knowledge, going beyond conventional project management and mentoring the IT department to move from the mind-set of "order taker" to the mind-set of an IT venture capitalist.
Aron added: "All forms of enterprise growth require support from the IS organisation - at a minimum, to make sure that IT assets aren't in the way of growth."
Other areas of business growth which the IT department should prepare for include improved operations, new products and improved marketing, according to the report.
Comments
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1. Brian Murray
I read the title and my heart sank! ... I couldn't imagine anything worse than suggesting anyone to think like a venture capitalist!!
Having read the article I now understand the context to be almost the opposite - perhaps the heading of 'think like a non-UK venture capitalist' may have been closer to the mark.
The article, as I read it, it actually proposing that CIOs apply their collection of resources towards adding true business value, grow and innovation .... a UK venture capitalist would be looking for ways the resources could be sold off, redundancies made and services outsourced ... Then, given the apparent short term health reflected in the balance sheet, sell the company to a US rival!
2. paul broome
Tosh as per normal from Gartner.
Good grief - I never realised that I need to apply scarce resources where they would make max. benefit.
Seriously, what parallel world do thy live on.
Keep milk in fridge _ Gartner
Turn off iron when you go out - Gartner
fasten seat belt....
Paul
3. Brian Murray
Re-tosh as per ....
Let's not forget that analysts do not actually predict events nor do they possess any particular vision beyond what they gather from market action/intention.
They generally predict what is already starting to happen - it is not in their interests to risk getting things wrong after all.
Even if they risk a small degree of prediction, this in itself acts as a self-fulling fashon statement (e.g. next year IT departments will move towards yellow cables means the CIO will be asked what their plans for yellow cables are, and will therefore err towards a choice of yellow!)
This does raise a good point though ... An analyst who does step out from the crowd and make discuss/promote some bolder innovation in the industry would make for such a refreshing spur in the marketplace.