Issue link: http://www.e-digitaleditions.com/i/90487
But as technology becomes more critical to running any kind of busi- ness, it becomes necessary for all top managers—not just CIOs—to have an understanding of how it works and what it can do. "I wouldn't say they need to learn how to connect the Internet switches," says Marc Hoit, vice chancellor for IT at the Office of Information Technology at North Carolina State University in Raleigh. "But they need to understand the merger of business and technology." IT in the Business World The technology that runs today's businesses is so pervasive and so interdependent that "things like standardization and integration are no longer just nice things to have— they're essential to competitiveness and innovation," says Fonstad. When top managers have a broad understanding of digital data, they can "identify the synergies that enable the company to develop new products and services," he adds. They can use IT to fine-tune business processes, improve cus- tomer service, and innovate and operate more efficiently. For instance, Fonstad describes MAPFRE, a Madrid-based insurance company that was able to standard- ize key customer data to determine why certain customers were leav- ing—and create a new policy that would retain them. Because CIOs are the ones managing the complex, interdepen- dent data systems, says Fonstad, "they're the ones with the most holistic view of their organizations. If CIOs are spending all their time on managing technology, I would argue that their organizations are wasting money." 20 November/December 2012 BizEd tion? Encourage business schools to develop programs that will give graduates a balanced grounding in both management and technology. He'll hear no dissent from Martin Frick, director of the Executive Edu- cation Programme and HR Work- group at the European CIO Associa- tion (EuroCIO), based in Brussels, Belgium. "In most businesses, even nontechnical ones, IT has become core to the business model," Frick says. "Only if the CIO acts as a busi- ness manager can you get the full potential of IT in the organization. It should be possible for the CIO to become the CEO of the com- pany. But that means the CIO must develop the right skill set." Fonstad agrees. "Businesses increasingly want employees who have T-shaped portfolio skills," he says. "The vertical dimension represents deep expertise in a spe- cific area, whether that's in busi- ness processes or products. The horizontal dimension represents an ability to manage IT interdepen- dencies. People with these skills know how to take the data gener- ated by one business unit and use it within a different business unit to help develop new products." The trouble is, individuals with those skills are in short sup- ply—and growing more scarce. "As more organizations recognize the importance of hiring gradu- ates with these skills, the demand has increased, while the supply is shrinking," says Fonstad. That's also been the conclusion at EuroCIO, which has forecast a shortage of chief information officers in the future. The solu- Planning the Programs Hoit asks the obvious question: "How do you prepare students for business careers that encompass sci- entific and technical knowledge? For instance, logistics is a hugely math- ematical problem, one that civil engi- neers have been solving for years. Is the answer to make sure every student earns an engineering degree before going to business school?" Maybe not, but experts believe business students need to learn the technology alongside the functional disciplines to understand how the two relate. One approach is to develop special classes and full programs that integrate business and technology (see "Education at the Intersection," facing page). But there are other ways that schools can make sure business students understand technology's vital importance to the organization: ■ Expose students to real-world expertise. INSEAD's Fonstad rec- ommends three strategies: inviting practi tioners into the classroom, sending students out to conduct projects for actual organizations, and launching research centers on campus. All three approaches enable students to interact with executives and see how academic theory can be applied to practical challenges. ■ Encourage business students to acquire specialized skills. Hoit advises his students to develop expertise in a functional business discipline—and a technical skill to back it up. He suggests they acquire this specialized knowledge through