Question

1. a CEO of a company hear about your qualifications as a an IS consultant and approached you for consultation. she told you that currently they don't have a real information systems in their organization. The employees use Excel, Word, and other similar programs to support their organization. She told you that she was informed by a friend of hers that it is possible to lower costs , increase sales, increase efficiency, and sometimes even to gain a competitive advantage by appropriate use of real information systems. (e.g., an ERP software package to manage inventory, accounting, purchasing, sales, production, and other organizational units). Following her friend’s explanation, she decided to install an ERP software package in her company, she found a good one for heading this activity who was highly recommended by a colleague of hers. During the process of interviewing this candidate, she was impressed by his skills and personality and was about to offer him the job. Then the candidate told her that in order for him to accept the offer, she has to appoint him as a CIO and let him have a seat at the executive table. The CEO thought and then realized that appointing the IT manager as the CIO will cost her a lot. The position at the executive level will entitle him to a higher salary, and a lot of other resources. Like all the other “C” level executives receive. On the other hand, as she told you, while the other executive deserve the additional resources since their contribution to the organization and tis operation and performance is well defined and appreciated for a long time. (e.g., the HR, finance, and operation VPs), the contribution of the IT is not as tangible. They just provide some reports, and these reports may not justify the cost. As a consultant that is fully aware of the business perception, and of the difficult economic situation, you realize the importance of cost saving. What will you advise the CEO to do? Please explain.

Answer 1

With increasing influcence of IT in the business, more and more processes are becoming technology enabled with an objective to increase process efficiency, reduce cost, enhance service standards and customer focus and gain competitive advantage through better access to the information and its application in relevant areas.

Every progressive organisation is shifting towards IT driven systems from the conventional ways. As a result, IT will be a driver of the profitability, sustainability and competitive advantage in the time to come. Initially salaries and benefits of a CIO may seem unjustifiable, but as organisation embraces the change, IT will be the most vital segment of the business, contributing more than all other departments. The humble looking reports may provide such insights and recommendations which can save huge amount of money, suggest course of action that may lead to high growth or detect faults that may cost millions if not addressed to. The CIO will provide leadership to the IT division and bring about changes that will make the organisation more competitive.

The recruitment of CIO is therefore is highly recommended.