When it comes to overseeing a company's IT investment, the tension between the executive team and the IT department goes back a couple of decades at least. Oftentimes the business executives don't trust the IT staff to keep costs in check, thinking they might overspend on nonessential technology, while the technology personnel assume that management won't understand the technology well enough to make the right investment choices.

Years of struggle and conflict have resulted in a relatively new position: the CIO, or Chief Information Officer. The CIO is someone who has both a deep understanding of information technology and a good grasp of the business's overall business goals and financial position. They know how information flows through the company and how to use technology to manage and optimize that information.

Smaller companies don't generally have a CIO, and the question of who should manage an IT investment remains. Fortunately, small business owners can learn from the evolution of the CIO role. In order to make and manage a smart technology investment, you need to have a clear understanding of your core business goals and knowledge of how technology can help you meet those goals. Business owners usually wear several hats, and if you intend to manage the company's IT investment by yourself, be honest about whether you have a handle on both parts of this equation.