Complexity catapaults CIOs to box seat

Beverley Head
Tuesday, 19 October 2010 14:09

Business IT - Networking

The burden of complexity which most large enterprise CEOs now face is catapaulting CIOs into the box seat as far as their ability to become both valued adviser and trusted service provider is concerned.

Earlier this year IBM released its Global CEO study, the fourth in a series of biennial reports, examining the key issues exercising the leaders of large enterprises. Today the company released a report Capitalising on Complexity, which examines the implications of that Global CEO study for chief information officers.

One of the overarching factors is that technology is recognised as a valuable asset by CEOs. In 2004 when the first survey was conducted 'technological factors' was only the sixth in a list of external factors identified as having an impact on large enterprises. Today that has shot into second position, lagging only market factors.

According to Matt English, IBM strategy and change leader, most CEOs identified increased volatility, uncertainty, complexity and a structurally different marketplace as being issues that would have to be faced in the future. Of the Australian CEOs surveyed 84 per cent said they expected increased future complexity, but only 39 per cent felt properly equipped to deal with that.

For CIOs, who are increasingly expected to provide the tools to manage much of the complexity, there is still a way to go.

But as Paul Williams, CIO of Campbell Arnott noted, 'Technology can't make anything simpler. It can only automate a process which has been made simpler.' Williams stressed that at its core Campbell Arnott 'makes soup and biscuits' which on the face of it wasn't a complex issue.

However making soup and biscuits for a global parent, in a fiercely competed marketplace was complex, and IT had a role to play.

'Big organisations have created internal complexity almost wilfully. We (in IT) need to get back in our box and do things flawlessly,' said Mr Williams.