Abstract
The digital transformation is affecting numerous industries, including media, retail, automotive, transportation, and healthcare. To address the modern challenges of digital technologies, increasing customer demands, and a rapidly changing enterprise setting, CIOs and their IT organizations are required to extend their performance profile, adopting a new organizational design and a broader range of behaviors. Today, CIOs are learning that they cannot manage current strategic, operational and investment responsibilities within existing company boundaries while still ensuring stability and hard cost management. IT organizational units should move beyond their current focus on operations and systems and adopt new behaviors, to facilitate and lead new digital innovations, seize new opportunities, and raise business performance in the marketplace. CIOs recognize that they must remove historical and legacy commitments to create new connections in processes, structures and roles and to reinvigorate IT value potential in a new digital environment. They need to redesign internal organizational interactions to liberate resources, time and attention dedicated to new challenges. They also need to move beyond enterprise boundaries and navigate new ecosystems to search for innovation opportunities. This chapter presents insights on how CIOs must orchestrate innovation across functions and external networks to reinvent and structure value delivery and new business models, stimulating a wider and more productive conversation with different actors. This chapter also argues that CIOs need to combine and harmonize physical and digital, thusly breaking from traditional processes and establishing new digital methods of working.
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Notes
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In 1965, Gordon Moore, future co-founder of Intel, based on empirical observations, suggested that the number of transistors in microprocessors would double in approximately every 12 months. Although the times have been gradually extended to 18 or 24 months this prediction, which came to be known as the first law of Moore, proved to be substantially correct for over three decades, conditioning the evolutionary roadmap of microprocessor manufacturers and consequently, of hardware and device manufacturers.
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Aron D, McDonald M (2013) Taming the Digital Dragon: The 2014 CIO Agenda. Gartner Group. See also: Gartner 2015, IT Glossary—Bimodal IT. http://www.gartner.com/it-glossary/bimodal.
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McFarlan, F. W. and Nolan, R. (2005), Information Technology and the board of directors, Harvard Business Review, Vol. 83, No. 10, pp. 96-106.
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An organisation follows a “management” sourcing profile when it is oriented towards retaining management and maintenance operational activities internally and by delegating to suppliers activities related to development, for which it considers itself to be unable to ensure the correct level of professional and competitive updating.
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An organisation follows a “development” sourcing profile when it is oriented towards retaining development activities internally and by delegating to suppliers those tasks related to management and maintenance for which it considers itself unable to ensure the correct level of efficiency and competitiveness.
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Corso, M., Giovannetti, G., Guglielmi, L., Vaia, G. (2018). Conceiving and Implementing the Digital Organization. In: Bongiorno, G., Rizzo, D., Vaia, G. (eds) CIOs and the Digital Transformation. Springer, Cham. https://doi.org/10.1007/978-3-319-31026-8_10
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