Globally, IDC has found over half of new IT investments in 2013 involved direct participation by line of business (LOB) executives. If this trend is extrapolated LOB will be directly involved in 80 percent of new IT investments by 2016. This trend is equally relevant in a 2013 survey, of over 300 New Zealand executives, which found the CIO's level of involvement in business transformation projects has dropped below 50 per cent for virtually every stage of the project, whilst LOB involvement has risen to over 50 per cent.
Line of business executives are now making more technology decisions — with or without IT's imprimatur. CIOs and analysts share pointers on how to develop and nurture a working relationship with these business leaders.
However, the problem is not when IT is excluded. It occurs when IT is unaware and "shadow IT" develops within the organisation. Rather than the big stick approach (which will probably exasperate the situation), the CIO should seek out the root causes behind shadow IT. They should actively encourage LOB involvement in technology decision-making and implement an effective governance process that supports self-management of IT decision making.
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