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The Strategic CIO by Philip Weinzimer

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465
20
fInal tHougHtS
An Executive Challenge
CHAPTER OBJECTIVE
e objective of this chapter is to conclude the book with a chal-
lenge to the executive suite. Strategic CIOs are now part of the
executive team that drives business outcomes to improve cus-
tomer value, increase revenue, and enhance shareholder wealth.
Managing in the twenty-rst century requires new thinking.
e pace of change is so fast today that management delegates
decision making throughout the organization, even those clos-
est to the customer. Unfortunately, personnel dont have all the
facts and, as a result, make decisions that create tremendous
risks for the company (e.g., JP Morgan’s London Whale scandal).
e result is that decisions not made with all the correct facts, as
well as the history of similar decisions and resultant risks, could
negatively impact the company. A proactive early warning infor-
mation system is required to coach and mentor decision makers
throughout the organization to mitigate risks before they occur;
in essence, instrument the business to avert risks through a set of
early warning indicators, smoke alarms, and mitigating actions
to prevent risks before they occur.
Managing in the twenty-rst century requires new
approaches than used in the past. e dynamic and
ever-changing business landscape requires companies
to be agile, exible, and aware of emerging issues that
can quickly turn a protable and competitively success-
ful company into a potential disaster. Remember the
2012 JP Morgan’s London Whale trading scandal that
466
the strategiC Cio
e focus of this book is how strategic CIOs and their IT teams
are changing the business landscape. ey accomplish this by col-
laborating with C-suite executives and business teams to leverage
information and technology for competitive advantage by developing
new products, services, and processes to achieve signicant business
outcomes. I have provided you, the reader, with numerous examples
of how strategic CIOs transform their IT organization using a four-
phase transformation model. I sincerely hope that you apply the les-
sons, insights, and experiences shared by these strategic CIOs as you
begin the journey to transform your IT organization into a strategic
enabler of business success.
Strategic IT Organization
Transformation Phases
Time
Value
1. Deliver Commodity
and Business Services
Exceptionally Well
3. Implement Initiatives to
Improve Margin
(Sales/Cost)
2. Understand the Business, Focus
on User Experience, and Improve
Business Skills of IT Personnel
4. Leverage Technologies
Strategically to Innovate
Value
resulted in 6.2 billion dollar trading loss and 920 million
billions in penalties. True, JP Morgan has a set of prod-
ucts and services that provide signicant revenues.
However, aws in supporting processes that enable these
products and services did not provide early warning of a
potential trading issue. Herein lie the gap and the chal-
lenge for the executive suite.
467
Final thoughts: an exeCutive Challenge
Business Challenge
ere is, however, an important challenge the executive suite
must address. Managing in the twenty-rst century requires new
approaches than used in the past. e dynamic and ever-changing
global business landscape requires companies to be agile, exible, and
aware of emerging issues, from outside as well as within its business
enterprise. Otherwise, unforeseen events can quickly turn a prot-
able and competitively successful company into a potential disaster.
Remember the 2012 JP Morgan London Whale trading scandal that
resulted in 6.2 billion dollar trading loss and 920 million in penal-
ties.
1
True, JP Morgan has a set of products and services that pro-
vide signicant revenues. However, aws in governance and oversight
processes did not provide early warning of a potential trading issue.
Herein lie the gap and the challenge for the executive suite. is event
led many executives in the C-suite to begin conversations regarding
the aws in key processes throughout their companies that often go
awry. e London Whale event is an extreme example. However, each
and every day, executives, managers, and personnel throughout your
business enterprise make decisions, approve decisions, or are aware of
decisions made by others. ese decisions would be made dierently
if management and personnel had an early warning system to advise
them of the potential pitfalls and associated risks based upon dierent
decision scenarios.
Todays global business environment is more complex than ever
before. is is due to the following three paradigm shifts in the com-
petitive marketplace, each causing a governance chasm for the busi-
ness enterprise:
Expanding global marketplace requires constant vigilance to
uncover competitive opportunities and threats.
Consumerization of IT results in customers demanding new
digital products and services that IT organizations need to
develop quickly and cost-eectively.
Changing organization models composed of virtual teams
making complex business decisions replaces the traditional
vertical and hierarchical structures.

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