Information Technology
HRCM1-GC1240
Spring 2014
Instructor: Larry Mantrone
Chujun(Vera) Wang
Individual Assignment 2

Submitted on: Sunday, 02,09,2014

Submitted by:
Chujun Wang

Assignment: Write a one-page paper using the standard assignment template provided in NYU Classes that summarizes the article’s content and whether or not you agree with the statement that chief information officers (CIOs) should report directly to chief executive officers (CEOs).
Cite Sources Used – Use of APA format is mandatory. For more information on APA format, see http://owl.english.purdue.edu/owl/resource/560/02/ or http://library.williams.edu/citing/styles/apa.php. For more information about plagiarism, consult http://nyu.libguides.com/plagiarismSCPS or www.plagiarism.org.

Please provide citations within the text, along with a list of references used.

“This is a great time to be a CIO. We sit at the center of it all.” – IBM CIO Leadership Forum Participant CIOs are underestimated
From the Sony case and some researches we could find that globally, a minority of CIOs (38 percent) reports directly to their CEO today.
IT can be a really tough gig for making a valiant attempt to demonstrate business credibility by providing solutions that can have significant business impact, regardless of industry and regardless of vertical. It can. However, IT departments are constantly seen as “service providers” to the organization. CEOs that sit at the top of the organizational pyramid are slowly killing their CIOs by locking the CIOs out of strategy sessions.
Why CIOs matters A LOT * The business landscape is changing
As business and technology strategies increasingly become one, more collaboration is needed. * Innovation is the most competitive weapon
To achieve dramatic performance gains, companies find they must rethink, or transform, and one of the key accelerators of change is information technology.
Closing the CEOs and CIOs gap
I once read about this article of some CIOs considering to report directly to CEO as a way to get more visibility for IT and attention to key decisions about its utilization. And it suggests more frequent contacts on specific business problems, trust building and personal development.
If you want that direct line, justify it.
Although, I’ve been talking about how important CIOs are and CEOs should pay more attentions on them. I found this article quite interesting and it has some points.
There is no "one size fits all" solution to deciding whether the CIO should report to the CEO. The combination of factors will be unique to the firm and the individual.
In the article, he illustrated that it’s not preferable that all CIOs should report to CEOs. Only under specific situations, the direct reporting line is warranted. * The company is highly Information-intensive, like Sony * While a technology-dependent business model or company transformation is under way — for example, merger and acquisition process integration * While a heightened state of information-related threat or risk is in play — for example, cyber warfare, industrial espionage, regulatory compliance or information-intensive business volatility * Where the CIO also has another C-suite role — for example, COO, CFO or head of shared services * Where the CIO role is a career development step or succession-planning action toward a future role as the next CEO, COO or CFO
(Mark Raskino, 2011)
I can’t agree more with Mark and his theory.
Every industry has its uniqueness. * Companies with direct reporting line tend to strive for competitive advantage by differentiating their products and services. Focusing on innovation, introducing new products, increasing the value proposition, the CIO has to constantly think about potential new IT that can widen that advantage. * In other companies, directly reporting to CEOs may seem unnecessary, the CIO's strategic role is supportive. For example, for companies with market-based strategies, aiming to deliver to customers, the strategy will perhaps be driven more by the marketing organization. IT will then follow up to make sure that strategy is delivered.
Different kinds of CIOs cause different reporting structures
There are two very different types of CIOs * The ones very connected to technology and R&D----‘the observer’ * The kind you want in a firm pursuing a differentiation strategy, where the CIO has more of a financial background with another C-suite role — for example, COO, CFO or head of shared services or where the CIO role is a career development step or succession-planning action toward a future role as the next CEO, COO or CFO----‘the player’
So the key question becomes, Is IT a player or an observer? Does IT directly contribute to the development or production of the company's products, generate sales or satisfy customers? If yes, then the CEO would be wise to have IT report directly to him. But if IT only reports on the successes or failures of others, then why should the CEO deal directly with it? (George Tillmann, 2009)
Conclusion
As a result, we are not applying the direct reporting relationship between CIOs and CEOs to all. It’s efficient and more reasonable the companies choose their own styles. However, there’s one thing I can’t stress more is that the IT department and CIOs need to be pay much more attention than before, since information and technology is playing incredibly increasing role in business world nowadays.

Reference:
Mark Raskino, Oct 13, 2011 2:21 PM, Should the CIO report to the CEO?
Filed under Strategy
By George Tillmann, Tue, September 08, 200 Don't Report to the CEO? Maybe That's OK
URL: http://www.cio.com/article/501563/Don_t_Report_to_the_CEO_Maybe_That_s_OK