Information technology (IT) has a decisive impact on what a modern organisation can do. So more line-of-business executives (LOBs) want to control IT directly to run their current businesses and innovate for competitive advantage. Technology has advanced to the point where it is less expensive to experiment with radically new experiences, says John Kim, senior vice-president of global product development at Expedia, the worlds largest online travel agency.
At the same time, chief information officers (CIOs) and other IT professionals understand in depth how technology and business processes function and relate to each other, not only at the departmental level but for the organisation as a whole. Almost any core capability in a modern organisation involves mixing data with some kind of business process, says Dr Jeanne Ross of MITs Sloan School of Management. Thats where the IT unit becomes so valuable. They understand what technology can or cannot do.