【正文】 when the position is “director” or above, it is assumed that direct reporting is made to the president. 2. For CIOs concurrently serving in other positions, the ratio of direct reporting to the president is discounted for the ITrelated work load ratio. Source: Japan CIO Consultative Council, analysis by BCG. There appear to be large differences between Japan and USA in the amount of ITrelated information making its way to the top management. Other 8 Vice President or above 8 Director 11 Managing Director 7 Executive Managing Director 4 MITI 8 CIO has limited authority: ? Only responsible for (expense) budget and personnel of head office information systems department. ? Investment authority rests with director in charge of business divisions or director in charge of accounting. The ordinary CIO at a Japanese pany is in charge of managing information. Rather than being responsible for formulating IT strategy, he tends to manage the information systems anization. Range of director’s responsibility/authority Reporting systems of the IT department Officer Information systems department head Director Director CIO/Managing Director Managing Director President Division C Division B Division A Administration Department D Administration Department C Administration Department B Administration Department A Information Systems Department Information Systems Department Information Systems Department MITI 9 Profile of CIOs in the USA * Has since been replaced by someone else. Source: BCG interviews. Federal Express CIO: Dennis Jones Previous post: VP for marketing Tasks: Use and expansion of customer interface system。 satisfaction of customer needs and internal operational needs GE CIO: Gary Reiner Previous post: VP for strategy Tasks: Create integrated merits of IT investments across multiple divisions: ? Webbased EDI ? 6sigma (develop into a brand that goes beyond quality control) ? Discover and use information and technology that have been accumulated within the group. Man Stanley CIO: Kevin Parker** Previous post: Trader Tasks: Build and manage an interdivisional IT system “The CIO we’re looking for is like a triathlon athlete. First, he must be able to serve as a leader who can motivate those above and below him. Second, he must be able to think about business in strategic terms. Third, he must be able to handle extremely plex technical problems.” (Russel Reynolds) “We use IT to develop the most advanced distribution services in the world, of which our customers may not be aware.” “Share and use customer information that is scattered among several divisions. My job is to search for differentiated ways that no one else is doing.” MITI 10 IT Organization Patterns Decentralized type Suitability: Conglomerates。 Marketing Systems EIS Customer Service Global Product Development EDI rder essing O Proc Management level (how to fit into strategy, how to change ways of doing business) Operational level (ease of use, development costs) Scope of IT Application has been expanding from Simple Operational Improvements to Changes in Business Paradigms (Conceptual Diagram) Operational efficiency Labor savings Mgmt. Reports Payroll Accounting Manufacturing rder essing O Proc Mgmt. Reports Payroll Accounting Manufacturing IT focus: Decisionmaking support Intradepartment Interdepartment Intercorporate MITI 6 The importance of CIO (Chief Information Officer) has been increasing both in USA and Japan Direct supervisor (direct recipient of reports) of the CIO Source: CIO Magazine (USA), Japan CIO Consultative Council USA Japan （％） 0 20 40 60 80 100 CEO CFO COO Other （％） 0 20 40 60 80 100 1995 1997 1995 1996 President (Chairman) Vice President Executive Managing Director Managing Director or lower Other MITI 7 Real Distance between CIO and Top Management is still Wide in Japanese Companies (From Studies and Research on Information Systems by the Japan CIO Consultative Council) 37 1 3 7 17 22 13 22 Position of CIO Component of CIO’s ITrelated work load （％） 0 20 40 60 80 100 （％） 0 20 40 60 80 100 President 0 Other 78 Director 26 Managing Director 34 Executive Managing Director 24 Concurrent 63 Full time （％） 20 40 60 80 100 78 （％） 0 20 40 60 80 100 Other than president Ratio of direct reporting to president (corrected for work load) Less than 10% 10% Less than 20% 20% Less than 40% 40%Less than 60% 60%Less than 80% Less than 80% 100％ ＝ 52 CEO 48 （％） 0 20 40 60 80 100 Other than CEO Direct reporting by CIO (immediate supervisor) Japan USA Assumptions: 1. When the CIO’s position is “other,” it is assumed that direct reporting is made to someone besides the president。 panies for which builtin applications provide an advantage. Examples: GE (1980s), Motorola Centralized type Suitability: Single/similar businesses。s Dictionary） IT governance： ?The anizational capacity to control the formulation and implementation of IT (information technology) strategy and guide to proper direction for the purpose of achieving petitive advantages for the corporation. MITI 3 Changes of Business Paradigms by IT (1): Rearr