Who is a Virtual CIO? What are Virtual CIO services?

When organization started embracing Information Technology they started off with a single huge computer and later to a small server with client PC’s all performing central data processing under the auspices of the EDP (Electronic Data Processing) department or MIS (Management Information System) department. With the advent of ERP’s every function within an organization had to start using PC’s as they moved from centralised processing to business process oriented processing which was originated by a function and traversed through other functions and would have been terminated by an entirely different function.

During these transition in handling of data the role of the person manging these Information Technology operations also kept changing within the organization. Where organizations clearly understood that Information Technology was no more an enabler but the competitive advantage for business growth the person managing these operations had to find a place at the board level. That was how the C-Level roles in the Information Technology function came to existence. They acquired the title of Chief Information Office (CIO), Chief Technology Office (CTO), Chief Digital Office (CDO) etc.. depending on the domain in which the organization was operating.

The realisation that Information Technology has to play a strategic role in the business plan changed the profile of the person managing it from a mere technology perspective to a business management role understanding all the various functions within the organization and transforming them to be more proactive in decision making using the help of the underlying data.

Small and Medium Enterprises which understood the capability of Information Technology in their business growth but was still having the function managed by a Network Engineer or a System Administrator who were very good at delivering pure technology needs. At the same time they acquired IT assets based on the recommendation of product vendors which didn’t deliver required results or had to shell more money and effort to make it work. These organizations aspired to have CIO’s but found it uneconomical and lacked the environment to attract good talent.

This gap between the demand and the supply was understood by some entrepreneurial CIO’s and they risked themselves to become Virtual CIO’s catering to multiple SME’s on a pay as you go basis, which prompted these aspirational SME’s to utilise their services to create their IT roadmap and improve their operational efficiencies for a fraction of the cost of hiring a full time resource.

The Virtual CIO Services includes but not limited to the following:

i) Creating a comprehensive IT strategy aligned to the business plan.
ii) Prescribe an IT Architecture suitable for the business domain and after evaluating the technology impact on the business.
iii) Improving the performance of the existing IT Operations by measuring key parameters and building capabilities.
iv) Establishing IT Governance by defining policies and procedures related to the security, reliability and availability of information assets across the organization, and enabling effective controls.

The advantages of engaging a Virtual CIO can be summarised as follows:

• They usually have a vast amount of experience in multiple domains
• They would have immense expertise in negotiating with Technology vendors
• They have in-depth understanding of the various business processes in an organization
• They would have handled various projects that were success or flop, providing them with sufficient knowledge to advocate fast and frugal implementations for their clients thereby ensuring measurable return on investment.
• They would have build IT organizations from scratch and would be capable of deploying small and large IT infrastructure with in an organization
• They have been on both side of the table as service providers and consumers that qualify them to appreciate the importance of customer satisfaction.
• Being an entrepreneur themselves they understand the importance of financial prudence and improving the bottom line of their clients.
• They have insights into changing technology landscape and are quick to analyse the impact of such technologies for the benefit of their clients.

 Even large organizations having a CIO/CTO/CDO on their roles also can engage a Virtual CIO as their PMO to bring transparency to their project implementations or as a SME (Subject Matter Expert) for a specific domain or a newer technology which they have contemplated as part of their business plan. The engagement can be also as an augmentation to their existing team which have their hands full and would be compelled to have a resource to manage a specific project for a short term.