The Chief Information Officer (CIO) has a very big job; he manages all the technology and technological solutions employed by the company. He is one part data processing director, one part chief technical officer, one part chief technology officer and one part information systems technology director. However, for as many companies that rely heavily on their CIOs, many companies outsource the CIO position or avoid having one altogether.
Demands
One of the biggest advantages and disadvantages of a CIO is that the position encompasses so much. On the one hand, it is a tall order. If the CIO isn't up to the challenge or is too focused on one element of the job, like IT, to the exclusion of the other elements of the position, dropping the ball in at least one area is terribly likely. Similarly, it is difficult for the CIO to establish credibility in each different knowledge base. On the other hand, there are benefits to having your hand in a number of different pots.
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Informed Decisions
Because the CIO has influence on so many different aspects of the company's operations, she can make very informed decisions about the way information is handled and processed. For instance, the CIO of a clothing manufacturer, understanding that the people packing the finished products need a way to know what size and color the shirts are that they are packing, can make an informed decision about the cost savings of having clear bags versus having detailed barcoding. The CIO would be able to make estimates about that decision's affect on the shipping department as well as what is best for the packing department.
Centralization
One issue is that having a CIO would mean that information and technology operations are centralized, a big disadvantage for a company that has decentralized its operations. After all, each separate division or project will have its own needs, strengths and opportunities. In this case, unless the CIO is well-acquainted with each division, he would not be able to make informed decisions. In some cases, he may even make decisions that are so ill-informed that they work against a division.
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Strategy
On the other hand, having a CIO oversee the information and technology aspects of a company's operation can mean having insider advantage and influence in its various departments and divisions. In this way, the CIO can push and reinforce the company's overall strategy, enabling it in a way that other central officers may not be able to because technology and information is a seminal part of the function of every department. Changes and upgrades within those realms can make or break company initiatives.
