Business change or IT spend

25 Jun 2010

According to a recent Computing article, the pressures on the £17bn public sector IT budget will result in reducing the size of IT projects. I faced similar challenges as a national and European CIO for large multinationals such as Diageo and Electrolux.

One perhaps positive result from this cut is that it allows IT directors to ask a question that should always be posed, ‘Can you achieve the target benefit with no or a lower spend on IT?’

This enquiry was not always well received by my colleagues who thought that my role was delivering IT systems rather than adding business value through IT. Most realised over time that it led to a much stronger business case.

Top CIOs are increasingly accountable for integrated business solutions that encompass process, information and people change as well as the technology. Much of this is hidden spend because it does not lead directly to capital expenditure. The challenge with a lower IT spend is to be smarter in these other areas and I hope that it is one that public sector CIOs will rise to.

Government CIO John Suffolk recently won silicon.com’s top CIO award. His quote for the cover of my book expressed the difficulty that CIO’s face. ‘Our ability to successfully enable business change seems inversely proportional to what we invent.’  It certainly requires a broader skill set than just managing technology.

Which brings me to a hot topic. I am seeing a growth in master’s qualifications in information technology. From my standpoint at Henley Business School, there is a need for both the MBA and for specialist Masters. The former is more aimed at those who want to move from IT to a broader business management career while the latter is for those targeting senior IT professional and management roles. I plan to cover this topic in a future blog or article although you can email me if you need more information.

Finally, despite having some internal challenges, BCS has done a great job in promoting the IT professionalism agenda. This recognises the role that IT plays in enabling business change. I believe greater skills and professionalism will help us make better use of a reduced IT spend. We all have a responsibility to make it happen.

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