9. Do we have the right technology partners?
The days of complete vertical integration seem like ancient history. Functionally and economically, a company cannot do everything well. Central questions of business model design include what's important enough to do in-house, what to let others do for you, and how to select the best partners and manage the relationships for maximum mutual benefit. These same principles apply to technology. In IT, reliance on hardware, software and network vendors has always been high, and reliance on IT services providers-some of the best of them offshore-- continues to grow rapidly. The more important IT is to the business, the more important its partners are to the business. Getting the balance right is the key: Outsourcing too little is an economic waste, but outsourcing too much is a business risk, no matter how close the relationships with outside partners. The board should insist that management be explicit about what capabilities, including IT capabilities, are needed in-house and why.
10. Do we have the right technology leadership?
Our research on technology leadership points to the critical importance of getting the right person in the chair, someone whose skills and capabilities mirror the role that technology is meant to play within the company's strategy. Just as the role and focus of a CFO will vary between a bank and a manufacturer, so the role of the technology leader will vary with the strategic and operational importance of technology to the business. For example, in information technology, the CIO may concentrate on building global infrastructure to integrate the business, may be a central player in business innovation of all types, or may direct IT services sourced predominantly from outside the company. And, as the business importance of IT continues to rise, the CIO may become more and more a business leader, responsible for educating the rest of the executive team and the board regarding the business potential of IT. As part of its business strategy for technology use, the board must articulate and prioritize the roles it needs the leadership to fill, and make sure that people with the right "taste" are at the helm.
Special thanks to Concours Group colleagues, including Bob Morison, Vaughan Merlyn and Eileen Birge, and to our strategic partners at Infosys for their help in shaping the boardroom questions.
Article courtesy of YellowBrix, Inc.
About the author: Tamara Erickson is a member of the board of directors of The Concours Group, a professional service firm specializing in the intersection of technology and business, and CEO of its Global Consulting Group. She is a director of PerkinElmer Inc.
