Rather than looking bright, it would be fair to say that the future of the chief information officer (CIO) looks murky.

Technology leaders have always been forced to fight their corner, often struggling to receive wider company recognition and a place on the board.

But the tussle was bought into sharp focus recently, when high street giants Boots and House of Fraser announced plans to phase out the IT director role following major infrastructure overhauls.

Experts suggest they might not be alone, with other firms likely to stick with existing systems and place more responsibility on the chief financial officer.

Just 35 per cent of technology leaders now report to the chief executive, according to a recent survey from recruitment firm Harvey Nash and PA Consulting.

For technology leaders that are accountable to the chief executive, the pressure to perform quickly grows even stronger.

Research from service provider EDS and research specialist Populus shows the average CIO stays in position for just 38 months ­ hardly enough time to impress the boss with leading-edge business technology projects.

So where do such pressures leave the CIO? Are we about to see a reduction in the power of the technology leader?

This month’s Computing Business cover story suggests plenty of optimism remains, despite these concerns.

Take House of Fraser, whose chief finance officer, Stefan Cassar, says organisations can still benefit from having technology representation in the boardroom.

While Cassar has assumed responsibility for technology spend, he is now assisted by two new IT director roles ­ one for solutions and one for services.

Technology leaders should take note. In a finance-focused environment, CIOs should ensure they are able to drive the demands of the whole organisation.

Technology leaders ensconced in an increasing range of knowledge management initiatives and innovation projects will find themselves required to operate more as transformational leaders than IT technicians.

Such a move suggests a new function for technology; part of a broader, operational system ­where IT’s vital purpose within the company is finally recognised. There is no need to panic, then. While the future may look bleak for traditional IT directors, transformational leaders will help direct business operations.

Read the Computing Business blog.
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