By Andy Olson
December 15, 1997

Money changes everything. Once, the IT department was a kind of shelter-a place always vulnerab le to user complaints and demands, but separate from the frantic and seething claims of the marketplace itself. Not any more. With traumatic swiftness, the rise of the Internet and electronic commerce have changed all that.

IT is no longer merely an internal function. It's on the front lines, vulnerable to the threatening, unpredictable and ever-changing intensities of outside customers. IT is now a channel-a means of marketing and distribution. Once a cost center, IT is now emerging as a crucial revenue generator, shaping the fate of companies small and large.

These changes bring both career risks and opportunities. Understanding what they mean for you can make the risk less steep.

For example, everybody loves to hate their computer departments. But top managers complain a lot less when IT is seen as a profit and not just a cost center. Profit centers jump to the front of the line when it comes to resources-if their managers are clever enough to know when to cut in.

Managers who run administ rative functions-which IT used to be-tend to be risk-averse. With the profusion of electronic offerings, IT has the potential to generate, as well as absorb, revenue. Those who operate profit centers understand that not acting is taking a risk; movement is essential. It's a major cultural change, but one you must make.

American CEOs travel to the top through departments oriented toward marketing, sales and finance. Not long ago, the idea of a Fortune 1000 headed by someone with roots in IT-other than that small operation Bill Gates runs-would seem absurd.

But with IT as a marketing channel instead of a support function, it's inevitable. The key is broad expertise: Great CEOs are superb generalists. When IT was a support function, you could prosper with a narrow point of view and technical know-how. As a channel, you must learn how to roll out product lines and price, merchandise and upgrade them-in other words, act like every other manager does. Then you'll have a shot for the top.

Change is both discomforting and rewarding. Isolated corporate communities have special qualities and are often quite comfortable, but their potential is usually limited. Think of it this way: Now that IT is part of the bigger world, you're becoming a key player in the management team. Enjoy it.

Andy Olson is a managing director in the Communications, Entertainment & Technology practice at Ward Howell International, a global executive firm based in New York City.