By 2012, Companies with the Top 25 Percent Earnings Growth Will Have an Entrepreneurial CIO
The impact of an entrepreneurial CIO is greatest when the need for productivity leverage is greatest, as in the current economic environment, according to Gartner, Inc. Gartner analysts said by 2012, the companies with the top 25 percent of earnings growth will have an entrepreneurial CIO.
Gartner maintains that the distinctive feature of the entrepreneurial CIO is the proactive willingness and courage to take the high-level risks also undertaken by the business, to provide new or breakaway competitive advantages that translate directly into revenue, financial results and market share. It is this willingness to apply the highest level of creativity available within the organization to do things in a fundamentally different way that establishes new sources of shareholder value, while also setting new levels for IT productivity. It comes with the understanding that the business may fail in the attempt, but also that it will surely fail or, at best, attain mediocre performance, if it does not act.
“One of the biggest dilemmas facing organizations as we head toward 2010 is how CEOs and CIOs can execute entrepreneurial tasks in the current risk-averse environment,” said Jorge Lopez, vice president and distinguished analyst at Gartner. “As shareholders see the recession recede in their day-to-day actions, they will drive for revenue and earnings growth, and they will expect CEOs and CIOs to perform to heightened expectations.”
Mr. Lopez advised organizations to check that they have the right CIO for a return to growth. He said that the right combination of vision, risk-taking and persuasiveness is needed to fill the requirements for the job.
Gartner believes that the entrepreneurial CIO is the person who, working jointly with an entrepreneurial CEO or business unit executive, marshals the resources under the command of the IT organization, as well as creatively linking to resources outside of IT, to define and capture new and growing business opportunities. The primary focus of the entrepreneurial CIO is on new-business impact, and that impact is felt in three major ways by the business:
Gartner's own CEO research has established each year for the past six years that more than 60 percent of CEOs see their IT organizations as a key constraint to the changes they need. It is the ability of the entrepreneurial CIO to deploy resources and architecture within the IT organization that makes it a partner that is synchronized with the entrepreneurial objectives of the business.
“The entrepreneurial business and CEO need an entrepreneurial CIO to come up with and make the substantial changes required to capture new business and industry opportunities,” Mr. Lopez said. “The most valuable CIOs will be those who can provide this crucial value in a difficult economic environment.”
Additional information is available in the Gartner report “The Business Impact of the Entrepreneurial CIO.” The report is available on Gartner’s website at http://www.gartner.com/resId=1231317.
Gartner YouTube Channel
Additional comments from Mr. Lopez are also available on the Gartner YouTube channel at http://www.youtube.com/watch?v=tkzMWantKHs. Additional videos with Gartner analysts are available at http://www.youtube.com/gartnervideo.
Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. The company delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the valuable partner to clients in approximately 10,000 distinct enterprises worldwide. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 7,900 associates, including more than 1,700 research analysts and consultants, and clients in more than 90 countries. For more information, visit www.gartner.com.
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