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Brenda Michelson
Business-Driven Architect
Brenda Michelson’s view on architectural strategies, technology trends, business, and relevance.

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February 20, 2007
Today's WSJ: CIO Jobs Morph From Tech Support Into Strategy

Nice to see this article (free access)  in today's WSJ on the increasing role of the CIO in business strategy.  Here's some quick excerpts, emphasis is mine:

"Other CIOs are going through similar transformations. The computing systems they manage have long been seen as an essential resource but also an operating cost to be controlled. Now, technology is increasingly being recognized as a vital tool in corporate strategy -- and CIOs are helping to wield it. Web sites, for example, have evolved at many companies from the equivalent of corporate brochures to huge direct-sales channels that must be skillfully designed and tightly managed.

According to recent CIO polls from research firm Gartner Inc., 50% of CIOs surveyed said they now have duties outside of core technology, such as helping to craft corporate strategy. That is up from about 20% three years ago, says Mark McDonald, a Gartner analyst.

"Companies are requiring CIOs to be more thoughtful about strategy," says Reynold Lewke, a partner in the Palo Alto, Calif., office of recruiting firm Egon Zehnder International who leads the firm's CIO practice. "Many CIOs have become business partners."

In recognition of this job shift, more CIOs are now reporting to top executives such as chief executives, chief financial officers and chief operating officers than to other parts of an organization. Last year, 74% of CIOs surveyed reported to a CEO, chief financial officer or operating chief, up from 69% in 2003, according to Gartner."

...

"For Louie Ehrlich, CIO for one of Chevron Corp.'s business units that oversees the energy company's refining, marketing and lubricants business, the shift in his job was mirrored in his changing job title. While the 48-year-old previously spent a lot of time integrating Chevron's far-flung tech operations, he took on a more strategic role when he helped lay out a five-year technology road map for the business in 2004. It went beyond tech, such as improvements in the San Ramon, Calif., company's supply chain and improving the reliability of its refineries.

Last September, to reflect how his job had spilled beyond tech support, Chevron gave Mr. Ehrlich the additional title of vice president of strategy and services. He has now ratcheted back his supervision of tech systems to just 10% of his time, instead delegating those responsibilities to a subordinate.

"The CIO title is misused, frankly," says Mr. Ehrlich. If all a CIO does is oversee tech systems, "they should be named a tech manager. A CIO should be enabling a business to grow.""

So, I'm thinking, if CIOs are indeed business strategists, and enterprise architects are key advisors to CIOs, doesn't that make an even stronger case for business-driven architects?  And if so, what are architects doing to (a) up their business IQ, and (b) get key architectural strategies (SOA, EDA, BPM, etc) understood and adopted in a business context? 

What is the relationship between business strategy and enterprise architecture in your organization? Is it direct and bi-directional? Or indirect, through a separate IT strategy function?  Or non-existent?

Update: 2/20/2007 at 3:21 pm

Just saw a couple of related articles in Computerworld.

Posted by brendamichelson in businessleadershipstrategy | Permalink | Comments (0) | TrackBacks (0)

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