The Importance of Chief Information Officer (CIO) in the Digital Age

The Importance of Chief Information Officer (CIO) in the Digital Age

With the necessity of digitalization among business owners nowadays, CIO is a crucial position in a company.

Today, technology can be found in almost every aspect of our lives. If it’s not done right, the expense of using technology can be high and cumbersome. Thus, having someone who is responsible for mapping out the company’s technological issues is important.

The role of CIO, or Chief Information Officer, has been around since the 1980s, according to Emeritus. It mainly handles the maintenance of internal computer networks, databases, and communication channels. Yet, its responsibility changes over time in response to technology's rapid advancement.

This article will talk more about CIO and its importance in an organization.

CIO Definitions and Responsibilities

A Chief Information Officer, as the name suggests, is responsible for managing and implementing the use of IT in a company. They also make sure the company’s technology system keeps up with the latest updates, Emeritus further states.

That being said, CIO today doesn’t only deal with the company’s IT infrastructure, but also the strategy to use technology for the company’s growth, expansion, and transformation. Having only tech knowledge is not enough—a CIO must be well-versed in business strategy as well.

Rich Temple, VP and CIO at Deborah Heart and Lung Center stated to InformationWeek that the CIO position is “almost becoming a Swiss Army knife in terms of knowing something about the operations of everything because everything involves technology in some way, shape, or form.”

The analogy describes the position well because as one of the C-suite positions, the CIO is responsible for doing a lot of things. Taken from Emeritus, here are some of the day-to-day CIO tasks:

  • Strategizing to create solutions that serve business needs
  • Coordinating with other executives to determine best practices
  • Stay updated on the latest IT trends and technologies
  • Overseeing network and system implementations
  • Managing the IT department and its team members
  • Vendor management optimizes factors such as costs
  • Approving the purchase of IT equipment

CIO Requirements and Challenges

Technology is no longer seen as an expensive and unnecessary move in the business world. Rather, it becomes a useful tool to increase a company's value and leverage. This growth mindset is exactly why a company needs a CIO.

Added to this sentiment, Dharmesh Archaya, the COO of Radixweb, told Forbes about the changing role of the CIO today. In Archaya's view, the CIO is the link between a company's business and digital vision; identifies appropriate ways to create value for a business by using the right channels or platforms. Therefore, a CIO needs to make sure a company is utilizing technology to its full capacity.

Apart from that, as IT business is mainly conducted on the basis of databases, the CIO must also supervise the protection of data against data-related crimes. However, despite the risk, Archaya also adds that a CIO must recognize that there is a potential in doing database experiments. This is in terms of processes, customers, employees, and the company's brand.

A man in blue tee is holding an opened laptop on his knee, he is outside of a building.

Unleashing the Full Potentials of CIO for Your Business

A CIO is an IT strategist. Therefore, their focus should be on the big picture of your company, and how and when the business objective needs to be accomplished through technology. Taken from Aldridge, there are several points on how your CIO will turn your company better:

  • A CIO will make sure your company uses the right tools to operate as a cohesive whole.
  • A CIO will make sure to spend your company's IT funds efficiently.
  • A CIO should lead the management of your IT toolset and suite of IT services to maximize ROI.
  • A CIO should have a clear picture of what area of IT your business aims to optimize, the problems your company comes across, and how to address the problems with your one- to two-year IT budget.

Additionally, it's highly possible that a CIO knows what you don't know about IT risks and opportunities. As Aldridge said, a normal IT team is only responsible for maintaining and reporting when there is an issue with IT. However, a CIO also helps to prepare and expand the business by preparing your company to face the unknown.

Final Thoughts

At the end of the day, someone cannot be everything at once. Patrick Wiley, Aldridge CEO, stated that a CIO's role is not to be an expert in everything. Instead, it is to bring the right expertise to the table at the right time. Therefore, adding a CIO to your team might be the ideal choice for your company.

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