CIOs need business smarts, too

By Eileen Yu, ZDNet Asia
Thursday, July 13, 2006 08:25 PM

SINGAPORE--Technical competence is not the only attribute to look for in top IT executives today. CIOs in Asia must also have keen business acumen and continuously drive innovation, a new study shows.

Commissioned by IT management software vendor CA, the survey was conducted by Insead InnovAsia, a business research unit--specializing on Asian technology markets--of graduate business school Insead.

"I spend more time understanding the business rather than the technology."
-- Rosina Howe-Teo, chief innovation officer, Singapore's Land Transport Authority


Martin Kralik, research director at Insead InnovAsia, said: "The question about whether the role of the CIO is necessary no longer exists now. But CIOs recognize that they need to create new ways for IT to add value to the organization, and be seen as contributing to the company's bottom line."

IT heads know they must bring innovation into the organization and align the company's IT plans with its business focus and the CEO's vision, he said. According to Kralik, the findings are based on a "small qualitative survey" of "a few dozens" of CIOs in Singapore, Malaysia, India and Thailand.

Philip Anderson, Insead's director of 3i Centurelab, noted that businesses are not looking for technology wizards.

"If I were going to hire a CIO, his technical capability is a given," he said. "I'll expect [the candidate] to have an ability to integrate [and manage] an increasingly diverse team. And I'll expect [the CIO] to have the business judgment to figure out what the company's key business needs are and [be able to] prioritize IT accordingly."

IT heads ZDNet Asia spoke with agree that their roles today have evolved to one that requires more than just technology competency.

Rosina Howe-Teo, director and chief innovation officer of IT at Singapore's Land Transport Authority (LTA), explains: "I am no longer valued only for how technology savvy I am, but as a senior management executive managing both technology and business needs together," she said. "I spend more time understanding the business rather than the technology."

QUICK POLL
What is the no. 1 skill your company's CIO should have?
Above all, the CIO must be technologically competent.
Rather than have the best IT skills in town, the CIO must first have business acumen.
The CIO must be good at managing people, even if the CIO's IT and business skills are only second best.
It's all or no hire--the CIO must excel in IT skills, business acumen and people management.

"In this role, the value I bring to my organization is how well I bring forth the potential of technology to meet business needs, whether these are short-term operational needs or long-term strategic applications."

Noting that LTA's day-to-day IT operations are managed by her senior officers, Howe-Teo added that she often has to market her ideas to senior management as well as her peers, to create better awareness and gain their endorsement.

For some IT heads, it also means putting oneself in the shoes of top management.

Roger Lim, IT manager of Singapore's largest cinema operator Golden Village (GV), said: "It is not enough to just think like a technical person in today's context, we must be able to integrate the role of our CEO and CFO into our work arena. "Their concerns must be our top concerns," he added.

Lim stressed that while there is a need to constantly think of new ways to use IT to stay competitive, there are two other factors to consider: cost and strategically aligning IT to the business.

"I don't look at technology and ask myself how it applies to my company. I look out for business needs and problems first. And if I can identify them out, I will then see whether any technological solutions can meet those needs or resolve the problem," he explained.


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