According to PwC, IT should become an engine of innovation for the firm, leveraging its resources to enable delivery of business products and services. In this way CIOs send a signal to their organization that they are a strategic partner in improving business processes and supporting revenue growth.
Over the past few years, many financial services and insurance companies have restructured their IT organizations as technology service providers to offer greater flexibility to the business and improved cost controls. This restructuring turned the relationship between IT and the business into one of supply and demand. We believe that the service provider model is broken and, in many situations, its promised benefits have not been achieved. The service provider model is restricting the value that a CIO can bring to the business and his or her ability to innovate in order to differentiate the business.
The IT organization should become an engine of innovation for the firm, leveraging its resources to enable the delivery of business products and services. By nurturing innovation, CIOs will send a signal to the rest of the organization that they are determined to act as a strategic partner in improving business processes and supporting revenue growth.
To assist firms that want to learn how to improve their IT innovation practices, PwC has published a new issue of the Financial Services Technology Journal that addresses the following topics: