In the face of disruptive technologies, more and more CIOs are shifting from a world of known problems into one filled with unknowns. CIOs are realizing that their current tools for managing risk and leveraging assets may not work in this new world. To help drive business growth and innovation, they will likely need to develop a new mindset and new capabilities. To do this, many CIOs are borrowing from the playbook of today’s leading venture capitalists. Watch the video below as our leading specialists share their perspectives on the implications of the CIO as a venture capitalist.
"The CIO as a venture capitalist: Working to establish an IT portfolio" is part of a new three-part video series Innovative challenges for the modern CIO which explores the advantages of disruptive technologies, the comparative and predictive nature of analytics, and the evolving role of the CIO as they hedge their bets, manage the IT portfolio across the enterprise, and address the care of growing patient populations with complex needs.
Brett Davis, Principal and General Manager, ConvergeHEALTH by Deloitte, Deloitte Consulting LLP:
To really move from being a CIO to a CIO as a venture capitalist, I think it really starts with a 5-to-10-year plan. You need to know where you are going, and begin to make the platform investments, as well as the incremental investments to create value on that journey. So if you don’t have a plan, if you don’t know where you are going, you can’t get there.
Harry Greenspun, MD, Director, Deloitte Services LP, Deloitte Center for Health Solutions:
CIOs have to act as a venture capitalist these days because they face a lot of disruptive technologies and one of the challenges they face is that there are lot of needs that they have, and a lot of solutions in the market. But how do you connect your needs to the solutions in the market?
Tim Smith, Principal and National Leader of Health Care Information Technology, Deloitte Consulting LLP:
An IT portfolio is really looking at what you have, your IT assets, and looking at them differently than what was traditional in an IT organization. It forces you to look at a clinical portfolio, a business portfolio, potentially a research portfolio if you are at an academic medical center. So, it really forces you to think about all of your IT assets in the services that they provide to different aspects of the organization.
Harry Greenspun, MD:
So when you think about IT portfolios, this concept has expanded year over year. IT used to be a supporting function. And now, it’s actually integrally involved in everything from their operations, their finances, their clinical work, their research work, and are drivers for all their analytics. The portfolio, has expanded and expanded, and contains a much broader array of technologies.
I think what’s important in looking at IT capabilities is to come up with some buckets of where as an IT organization do I need to provide value to my health system. Clinical portfolio would have my core clinical bucket. It would have my core ancillary, my lab, Radiology, Pharmacy buckets. It would have my revenue cycle buckets. And, what I need to do then is to look at what is the application services I have within the bucket, what are the potentially the medical devices that are required to really satisfy the requirements of the bucket? And also, then what data is being produced, so that I can then do other things within that portfolio of the bucket.
Harry Greenspun, MD:
CIOs have a difficulty hedging their bets. Some venture capitalists can often hedge their bets and diversify their portfolios. Very often, CIOs kind of have to at one point, lay their money down, and choose what they are going to choose. What’s been interesting they have been able to create a number of incubators to allow them to find different technologies that may address the same sort of thing. We are now seeing a rise of the Chief Innovation Officer as a way of looking in that. So I think that’s one way they are able to hedge their bets.
So hedging for modern day CIO is really taking a look at the overall application landscape, and making sure that there’s thoughtful investment that where I’m looking at, potentially innovations or bleeding edge technologies, that I really have a backup plan, that I have the ability to still satisfy my clinical requirements, still make sure that the claims are being paid, but also allow physicians, clinicians to be on the forefront of technology.
So, if I think of a couple of things that really should be top of mind for a CIO. One is a key change. What can I do with my IT portfolio to create better interaction with my patients? Whether it’s mobile technology, whether it’s portal technology, whether it’s some other way of getting the providers to interact more directly with the patients, that’s a great investment. I think investing to make sure that you have standardized yourself enough in that, and you’re flexible enough to be able to adopt an affiliation, or take on a merger to be effective.