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Yes, a CIO must always have their IT group engaged in the business. There has to be a solid relationship, built on trust, for the interaction with the functional units to work well. The CIO should be presenting the business case for a project in terms of value to the enterprise, with a primary focus on business transformation and revenue growth and a secondary focus on cost savings. Here's a related post you'll probably like too http://mdalums95.wordpress.com/2012/04/03/cio-poll-indicates-core-focus-top-line-growth-4/