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March 09, 2004

CIO reporting to Sales & Marketing

Jeff Cohen, the former CIO of JetBlue , on why he left JetBlue-

"I left because I knew I didn't want to report to sales and marketing," says Cohen, now chief executive of Vertical Software Group, an aviation-software startup based in North Caldwell, N.J. "If you are used to reporting to the CEO and COO, it's hard to report to someone who was your peer." Cohen's not alone. Other technology executives may need to consider the possibility they'll be reporting to sales and marketing in the future. Some smaller companies, such as Philadelphia-based collaboration-software firm Mindbridge, are already set up that way.
Though it's possible a company can get closer to its customers by melding sales and marketing know-how with, say, a customer-service implementation, critics of this arrangement say a single function of the company shouldn't have domain over the whole technology staff. The long-term fallout can be that sales and marketing will hog available project funds, leaving infrastructure upgrades, financial systems and logistics improvements behind. "

This is another sign of the subtle-trend I predicted (and received "hmm I am skeptical about that " response from the General Partner of a reputed Venture Capital firm).

Is anybody out there keeping score on the issue of Centralized IT Versus Decentralized IT ?

March 9, 2004 in Economics of IT | Permalink


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