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Tuesday, February 22, 2005

Evolving technology barbarians will need new tools to prove their value to the board

There is an adage that as a young company matures, its leadership evolves from being barbarians to bureaucrats, and a similar shift is currently taking place within the IT function of many organisations.

Whereas in the past, IT has not been seen to be subject to quite the same rules as other business functions, it is now being required to demonstrate its value to the organisation, to maintain the disciplines of planning, budgeting and cost management, and to assess and mitigate any potential risks to the organisation, in the same way as other departments.

As the leader of the IT function, the focus of the chief information officer is therefore turning further away from the detail of technology such as server availability, network performance and application functionality. Instead it is moving towards the strategic issues of IT budgeting and investment planning, governance, service quality, risk management and outsourcing.

Most business functions have well-established methodologies for cost and value measurement. However, enlightened CIOs seeking to prove their worth are finding a distinct lack of recognised tools and procedures that can be applied to this task.

Evolving technology barbarians will need new tools to prove their value to the board


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