The role of a corporate IT executive is to define standards, lower costs and keep IT running smoothly to support the business functions of a company.  The problem is that lately there seems to be a trend to say that CIOs are unnecessary or for vendors to bypass the CIO in purchase decisions.  Both of these are potential pitfalls for a business though in a myriad of ways.

 As the chief of standardization, it is the CIO's job to ensure that the data center is filled with hardware and software that is maintainable, secure and supportable.  Yet, when he is bypassed and business units buy systems directly vendors will often "lower" the price at a cost to overall supportability or standardization.  I know of a customer where the individual business units have gone out and acquire their own systems outside of corporate IT for image repositories.  The problem is that these small units are not redundant, have different levels of support, are not in the standard backup management pool and are not supported by the corporate IT department.  Now, if this was a manufacturing company, perhaps that would be OK.. But it is a healthcare facility.. I don't know about you, but I would prefer my medical records are both readily accessible when the Dr. needs them and also that they are properly secured.

When you have systems being sold directly to business units you are losing a key benefit of centralized ITs purpose.  VOLUME.   Even smaller companies can leverage past acquisitions with an existing vendor to get deeper discounts, but a single business unit is most likely not aware of what has been done in the past and also is likely to pay higher than any precontracted discounts that are in place.  Another loss point is in maintenance $$.  In the shop I mentioned above, they are paying about 30% more for annual maintenance with a number of smaller systems than they would with a single larger system capable of supporting all of them combined.  That is a significant chunk of money. 

 Not the last of points available to be made, but the last I am going to hit on today is operational efficiency.  When your central IT department is involved with purchase decisions, they account for training, support and operations.  When they are asked to support systems they had no say in, the added expense is their ability and willingness to be trained on supporting the system and getting processes and procedures in-line to ensure it is properly maintained.   This is a minor issue to the business unit.... Until something breaks that is, then invariably, their cry to corporate management is that the IT department doesn't know what they are doing.  That position should be indefensible however, when the corporate IT Exec is not part of the decision process. 

 Just as the CFO is trained and experienced in making sure the company is meeting fiscal reporting requirements and guiding the company's fiscal policy, the CIO is a necessary function for technology guidance.  Don't let yourself be fooled by all the voices jumping on this bandwagon today, as all it will do is open the door for "IT to business realignment" consulting services in the future where you will be told that you need a technology executive involved to ensure that new solutions fit within the model defined by your business.