In 1964, IBM released the System 360 mainframe and delivered the first in 1965. By 1966, IBM was able to sell more than 1,000 mainframes per month, each priced at $2.5-3 million.
（1）
In 1965, Harvard Business School professor Robert Anthony published a famous book: "Management Control Systems".
And from 1965 to 1968, he also served as the Treasurer of the Department of Defense and the Assistant Secretary of Defense. He also served in the Naval Supply Department during World War II. He also worked for the U.S. General Accounting Office. Judging from this superficial text, he is better at supply chain + finance + audit internal control.
As we all know, the United States calls itself the "New Roman Empire", the president - Caesar is mainly responsible for foreign diplomatic alliances and wars, and domestic operations are mainly implemented in the Senate (now the Senate House of Representatives). Therefore, the U.S. military has been leading the development and application of many standards, methods, and tools.
The book "Management Control System": Based on accounting methods, the framework of the management control system is constructed
The core chapters of this book include:
Strategic Plan
Responsibility Center (Profit Center, Revenue Center, Expense Center)
budgetary planning
transfer pricing
Business Performance
（2）
In 1945, World War II ended, and soldiers faced the problem of finding a way out after being discharged.
In 1943, due to the sudden death of his father, Ford II hurriedly retired from the Air Force and went back to help his elderly grandfather to keep Ford Motors. At that time, Ford Motors was threatened by the competition from General Motors and Chrysler Motors, and its market share had dropped below 20%. serious. In 1947, his grandfather, the founder of Ford Motor, also passed away. As a playboy, Ford II also wanted to get rid of his grandfather's shackles and cultivate his own backbone, so an elite team of ten people also from the Air Force, known as the Ten Blue Bloods, parachuted to Ford Motor. They are all graduates from Harvard Business School. They were in charge of logistics and dispatching of supplies in the Air Force, and they are good at planning, budgeting, and financial analysis.
In 1956, with the assistance of the Blue Blood Ten Heroes, Ford Motor was thriving and successfully listed.
The Blue Blood Ten Heroes have proved by facts that they can successfully run a company without knowing business. Therefore, in the 1960s and 1970s in the United States, young talents applied for business studies one after another, hoping to make it to the top.
(3) IT under the CFO
In 1969, in order to worry about antitrust being split, IBM announced that hardware, software, and services would be priced independently. In 1971, five senior vice presidents of IBM Germany founded SAP.
In the background of the above theory and practice from Robert Anthony of Harvard Business School and the Blue Blood Ten Heroes, SAP's software is naturally aimed at finance. Even if it is supply-production, the ultimate goal is product cost management. Even if it is manpower, The ultimate goal is also human cost management.
Therefore, it is normal for the head of IT to be under the control of the CFO.
The IT department of many enterprises in China is managed by the CFO, because many enterprises are in this stage of IT application, and the purpose of IT is also a financial goal.
(4) IT under COO
In the 1970s and 1980s, for 20 years, the IT system has always been based on financial goals.
In 1974, American industry and commerce were awakened by the Japanese industrial invasion, so American companies changed their past practices and began to carry out global production, supply, marketing, research and integration operations. At this time, a new position: COO, came into being.
The COO is mainly responsible for:
Full value chain process integration
Strategic plan integration promotion and control
Whole value chain quality management and risk management
In 1990, Michael Hammer, a professor of computer science at the Massachusetts Institute of Technology, published an article "Reinvention: Not Automation, but Starting Over" in the "Harvard Business Review". In 1993, he and Ciampi published the famous "Enterprise Reengineering: Business Process Reengineering".
The background at that time was: scientific management has been around for nearly a hundred years, and the scientific management system has been built to an almost perfect state. In 1980, Professor Michael Porter of Harvard Business School published "Competitive Strategy", and in 1987, Professor Kaplan of Harvard Business School published "The Rise and Fall of Management Accounting" and proposed a comprehensive evaluation method for corporate performance: Balanced Scorecard, the entire scientific management system From strategic analysis and design to strategic implementation performance evaluation, it has matured.
For American companies that have already experienced vertical integration (Ford Motors) and horizontal integration (General Motors), what else can they do? It can only be rearranged and combined with the balls of enterprise elements, which is called: value chain reconstruction.
Against the background of this era, 1993 coincided with SAP's global promotion of a new generation of products: R/3. Under the influence of this trend of thought, R/3 is no longer based on financial goals, but has changed to integrate the business processes of various departments within the enterprise.
Therefore, during this period, the IT department was under the control of the COO.
At present, most enterprises in China have not yet achieved the decentralized layout and integration of production, supply, marketing and research, so as far as the company's internal process is concerned, no special COO position has been set up. However, in fact, there will be a department in the enterprise to manage the process system, and the IT department will often be managed by this department.
(5) IT under the CEO
After Michael Hammer published "Enterprise Reengineering" in 1993, the Internet-e-commerce broke out in the United States in 1995. Many U.S. companies no longer need to integrate production, supply, marketing, research, and global layout, but rely on the Internet: based in the United States, serving the world, operating 24x7, and directly reaching final consumers across middlemen.
So a batch of reimagined theories such as "Blue Ocean Strategy" and "Second Curve" emerged. This is not the rearrangement of several balls that Professor Hamer talked about in "Enterprise Reengineering". So after 2000, the American business community has slowly shifted its focus, no longer focusing on business process integration, and began to explore digital advertising-digital marketing-e-commerce transactions-online customer service. Especially after 2010, with the outbreak of smart phones, the American industrial and commercial circles are also exploring product intelligence - product intelligent operation and maintenance services.
We are all very surprised about one thing: there is a CFO on the finance portal, a CHO on the manpower portal, a COO on the process portal, and a CMO on the marketing portal, but why is there no chief sales officer for the most important sales of the company?
Well, actually this question is easy to understand. Because in fact the CEO himself assumes the most important responsibility for revenue, and in order to achieve the revenue target, he has the power to integrate various resources of the enterprise to serve the revenue target. Digital advertising-digital marketing, this must be the responsibility of the CMO. But for e-commerce transactions, this must be the responsibility of the person in charge of sales. Customer service is the responsibility of the person in charge of the customer support center. Operation and maintenance is the responsibility of the person in charge of the operation and maintenance center.
Now popular: digital advertising - digital marketing - e-commerce transactions - online customer service - product remote intelligent operation and maintenance services, who will integrate so many departments? Of course he is still the CEO.
Therefore, CEOs need to rely on online IT technology to help them achieve online marketing-transaction-delivery-service goals. This is the real money of the enterprise. IT is not an internal efficiency cost tool, but it is the same as an e-commerce enterprise. It is a real revenue platform. Therefore, the IT department must be directly managed by the CEO, and the person in charge of the IT department must Rising to the level of a decision-making committee team, this is the establishment of the CIO post.
Most enterprises in our country mainly come from offline because most of their revenue comes from offline, and do not rely much on online, so the general IT department does not report to the CEO. Although in order to catch up with the fashion (the so-called international standards), the heads of many IT departments in China are called CIOs, but in fact he is not a decision-making committee team at all. In fact, most companies in China do not need to set up the position of CIO.
