How can a CIO add business value to an organization?

Top Answer : Look at the value creation capability of IT or business technology in a broader sense. There are very well-defined models for measuring IT value creation such as the work conducted by Prof Brynjolfson, Director of the MIT Initiative on the Digital Economy. And they use specific well-researched criteria to calculate value. Can you, therefore as the CIO, get the math right? Not on your own.  IT itself can't necessarily provide an organization a value multiple, but by making sure that you create the frameworks and business relationships on a sustainable basis, you can provide significant input to the business value creation process. The CIO can create enormous value through the creation of a business/IT value team whose sole focus is what is euphemistically called value-engineering. The process as it were has moved beyond the bounds of the traditional IT Department though. And the CIO is going to face an uphill battle in being recognised as a contributor to the corporate value generation process if they haven’t built the requisite relational partnerships with the rest of the executive team namely CEO, CFO, CDO, CMO etc. Once “on board” the CIO will need to identify what the strategic enablers are that are going to drive value creation moving forward.  A CIO, no doubt, has value in the traditional sense through “keeping the lights on”, but in today's economic climate and business environment, it needs to go way beyond that. In terms of providing relevant input, the first place you want to contribute is at the business strategy development phase. Which entails being invited to the executive table or simply being recognised as part of the business team.

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Look at the value creation capability of IT or business technology in a broader sense. There are very well-defined models for measuring IT value creation such as the work conducted by Prof Brynjolfson, Director of the MIT Initiative on the Digital Economy. And they use specific well-researched criteria to calculate value. Can you, therefore as the CIO, get the math right? Not on your own.  IT itself can't necessarily provide an organization a value multiple, but by making sure that you create the frameworks and business relationships on a sustainable basis, you can provide significant input to the business value creation process. The CIO can create enormous value through the creation of a business/IT value team whose sole focus is what is euphemistically called value-engineering. The process as it were has moved beyond the bounds of the traditional IT Department though. And the CIO is going to face an uphill battle in being recognised as a contributor to the corporate value generation process if they haven’t built the requisite relational partnerships with the rest of the executive team namely CEO, CFO, CDO, CMO etc. Once “on board” the CIO will need to identify what the strategic enablers are that are going to drive value creation moving forward.  A CIO, no doubt, has value in the traditional sense through “keeping the lights on”, but in today's economic climate and business environment, it needs to go way beyond that. In terms of providing relevant input, the first place you want to contribute is at the business strategy development phase. Which entails being invited to the executive table or simply being recognised as part of the business team.
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