CIOs Communicate IT’s Value Proposition

CIOs are picking up on value proposition. It’s no surprise since IT executives have been under increasing pressure for several years to justify and quantify the business value of their rising budgets. 

But there are often two types of CIOs: those that “keep the trains running” and those that want equal footing with other C-level peers as seen in their value propositions.

For example:

Western Petroleum’s chief technology executive, Christine Hays is all about managing costs. In a no-nonsense interview with Baseline Magazine she says, “contolling costs is how we make a profit." Her value proposition is equally simple:

“We use technology to automate business processes, allowing the company to maximize profits from our bulk sales.”

Ebay on the other hand, takes a more strategic perspective. Here's a quote from one of their IT jobs (which shows how IT inserts itself into the eBay business strategy and customer experience):

“We help the business grow by linking business to IT, improving business continuity and readiness, while providing security and privacy to customers.”

Okay, it isn’t rocket science, unless of course, you're CIO Pat Dunnington, who views IT as an equal player in the business of NASA.

“We help NASA fly things. Our ultimate product is information, unencumbered by location with electronic workplace tools, protected with proper security, enabling people to freely exchange information and knowledge around our secure, global network, wherever they are.”

It’s no surprise that NASA is the most aspirational. Western Petroleum keeps it simple and they are successful, but are they short sighted by viewing IT as the king of cost control?

You don’t need to throw a rock very far in today’s trade press without seeing the warnings about CIOs who focus on operations at the expense of business strategy.

For example, Ellen Kitzis and Marianne Broadbent in their book The New CIO Leader warn IT execs to not fall into a role of chief technology mechanic. They claim it's those CIOs that see themselves as business executives first, technology managers second, that will survive.

When Western Petroleum’s business changes dramatically due to increased globalization, alternate energy development, industry consolidation, or new refining techniques -- will its technology managers participate in the business response?

Or will they see their jobs as another exercise of driving process costs down once the business leaders have set a new strategy? Will they participate in executive decision making about the next big idea --- that will deliver both innovation and new revenue sources?

What do you think? Do you know CIOs that have truly become part of the executive business team?  Or does the whole idea remain an aspiration?