ABSTRACT
The objective of this chapter is to conclude the book with a challenge to the executive suite. Strategic CIOs are now part of the executive team that drives business outcomes to improve customer value, increase revenue, and enhance shareholder wealth. Managing in the twenty-first century requires new thinking. The pace of change is so fast today that management delegates decision making throughout the organization, even those closest to the customer. Unfortunately, personnel don’t have all the facts and, as a result, make decisions that create tremendous risks for the company (e.g., JP Morgan’s London Whale scandal). The result is that decisions not made with all the correct facts, as well as the history of similar decisions and resultant risks, could negatively impact the company. A proactive early warning information system is required to coach and mentor decision makers throughout the organization to mitigate risks before they occur; in essence, instrument the business to avert risks through a set of early warning indicators, smoke alarms, and mitigating actions to prevent risks before they occur.
Managing in the twenty-first century requires new approaches than used in the past. The dynamic and ever-changing business landscape requires companies to be agile, flexible, and aware of emerging issues that can quickly turn a profitable and competitively successful company into a potential disaster. Remember the 2012 JP Morgan’s London Whale trading scandal that 466resulted in 6.2 billion dollar trading loss and 920 million billions in penalties. True, JP Morgan has a set of products and services that provide significant revenues.
However, flaws in supporting processes that enable these products and services did not provide early warning of a potential trading issue. Herein lie the gap and the challenge for the executive suite.
