Why the CIO Leads

Under device networking, every data feed and control loop becomes a product or service that can be sold, bartered or used to sweeten some other deal. Suppose you have equipment that draws a lot of power but has some flexibility as to when it operates. If the control loop for that equipment is networked, you might be able to interest the local utility in trading a break on energy prices for the right to turn it on when utilization is lowest. Suppose your own product is a machine. If you build networked performance sensors into each one, every day, all the machines you have sold could e-mail you descriptions of their condition.

The Future of the CIO

Someone has to be responsible for identifying, creating, packaging and selling these deals. In theory, it could be anyone, but CIOs are probably the ideal candidates because in most enterprises they will be the only managers who are both network-centric and have a holistic view of the enterprise and its value chain. Fredrik Nilsson, general manager of network camera maker Axis Communications, points out that we already have at least one illustration of the argument: the central role of CIOs in the implementation of IP telephony.

As the IDOT story suggests, these implementations require an appreciation of human sensitivities. For instance, suppose your company is inspired by the example of the security cameras. How are you going to tell security that control of "their" cameras is being taken away?

Nilsson suggests putting it another way. Instead, argue that since networked devices tend to be self-maintaining, device networking tends to liberate the department traditionally responsible for maintenance. Second, once a device is networked, pressure starts building from all directions in the enterprise to upgrade the devices and add to them.

In other words, networking devices usually leads to a larger system of higher quality, which is better for everyone, including security, which will get coverage of areas it never had before. Nilsson says that usually once such points are made, even people losing departmental control of their devices are happy to participate.

Of course, the proposition has to be made the right way. After all, consensus is built one yes at a time. Not every CIO will be up to the level of diplomacy required. Those who are, though, will be like mini-CEOs, practicing the kinds of skills that should give them a straight shot to the top.