COOs expect CIOs to be business-savvy

Computerworld - BOSTON -- Operations executives from four financial services firms who are taking part in the National Investment Company Service Association's technology conference here have an idea about how CIOs can deliver value: They must be able to read an income statement.
"Do you know where the revenue comes from? Do you know where expenses are generated? And do you understand you have to have more of the first and less of the second?" said George Fisher, executive vice president and chief administrative officer at Prudential Securities Inc. in New York.
Fisher and others were participating in a chief operating officer panel this morning as part of this week's conference.
One concern among panel members is the need to adhere to new legislation such as the U.S. Patriot Act, an antiterrorism bill that went into effect today and that requires financial institutions to know their customers, track their financial activities and quickly detect money-laundering.
The Sarbanes-Oxley Act, which has established strict financial reporting requirements in place, was also a key topic among panelists.
"From a technology viewpoint, that has a fairly significant impact, primarily because of its focus on internal controls. Technology plays such a key role in data integrity and the passing of information and the information that goes into those reports," said Joseph Dello Russo, chief administrative officer at MFS Investment Management Inc. in Boston.
Russo also voiced concern about the SARS outbreak overseas but said that from a technology standpoint, he doesn't see it much differently than any other business recovery situation that could arise. "It's about identifying the key activities in your business and how you would process those within a one- to two-day crisis vs. a one- to two-week crisis vs. a six-month crisis. That's the element of any plan," he said.
Most of the executives said their technology professionals are expected to be an integral part of their business operations and, as such, should be as well versed in business plans as they are in technology.
"One of the problems is people fall in love with technology," Fisher said. "Charles Dickens had it wrong. Ebenezer Scrooge is a great role model."
"When you have your major technology folks ... able to discuss in great detail and very accurately describe, define and discuss what the business challenges are to doing something, then you know you're beginning to blend your organization," said William Bridy, senior director of Merrill Lynch Financial Data Services Inc., a subsidiary of New York-based Merrill Lynch & Co.
Bridy said he takes offense