CIO Movement from Cost to Profit and Social Media?

The concept of moving IT from a cost center to a profit center is still fairly new for most companies with the notable exceptions of Google, Facebook, Neilsen and the major telcos. But the role of the CIO is transcending its traditional function of automating and enabling other aspects of the business to driving profit utilizing the data that it is the steward of.

The CIO needs to possess strategic business smarts and superb operational ability. The ability to be able to work with the operational units in devising ways to look at the data that they have an monetize it effectively. Most business become aggregators of data, the ability to monetize those assets is becoming a crucial keeping a profitable business. The companies that understand this are looking at their CIOs and saying, “You own the data now help figure out how we can make money off this — or make more money off it.”

Wireless carriers are starting to realize they can monetize all matter of data collected from mobile users — specifically data that highlights their movement habits. According to MIT Technology Review, researchers and marketers are finding plenty of new uses for call detail records, or CDRs — which allow them to study a mountain of user behavior data. That data can be used by researchers or city planners to study travel behavior — but it’s likely going to be a gold mine on the marketing behavioral front.

The digitization of business assets– in concert with the rise of social media and networking as the vehicles of choice for reaching customers — increasingly puts IT at the center of the business’ marketing effort. It is now becoming very difficult in some organizations to tell the difference between the Chief Marketing Officer and the Chief Information Officer.

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