Published on October 29, 2023, 10:04 pm
According to IDC, the role of the Chief Information Officer (CIO) is facing new challenges from line-of-business (LOB) counterparts who can better align technology with the organization’s mission and customers. By 2026, IDC predicts that 60% of CIOs will find their roles being challenged by LOB managers who have a stronger presence in making technology decisions.
However, CIOs still play a critical role in helping organizations remain resilient and execute digital transformation strategies. CIOs who possess purpose-driven and people skills are now co-leading with their business counterparts to ensure technology aligns with sustainable business outcomes.
One of the key issues faced by many CIOs is being overshadowed by LOB managers in terms of decision-making power when it comes to technology matters. This inconvenient truth has put many CIOs at a crossroads in their careers. To overcome this challenge and play a technology/business orchestration role on the leadership team, CIOs need to build or strengthen relationships with their business counterparts.
Linus Lai, chief analyst and digital business research lead at IDC A/NZ, explains that today’s CIOs are building digital business platforms that enable extensive ecosystems to create and deliver products, services, and experiences while continuously improving them. The role of the CIO has evolved into becoming a digital business enabler who uses technology to compete effectively.
IDC has identified several top predictions for the future of CIO agenda:
1. Chief Business Technology Officer: By 2026, 60% of CIOs will face challenges from LOB counterparts who can better align technology with the organization’s mission and customers.
2. Dream Team: By 2025, 50% of CIOs will increase their reach and impact by effectively governing pervasive IT across LOBs and ecosystem partners.
3. Operating Model: To address market volatility and changing customer needs, by 2026, 50% of CIOs will optimize value streams, agile architecture, and risk management through an operating model design.
4. Resilience: By 2024, 40% of CIOs will leverage resilience capabilities as a competitive advantage in delivering financial, supply chain, ecosystem, and sustainability differentiation.
5. Deep Automation: By 2025, only 30% of CIOs will achieve a truly intelligent enterprise that combines AI/ML and deep automation to monetize changing business environments at speed and scale.
6. Human-Machine: To address skills shortages and tasks beyond human abilities, by 2026, 50% of CIOs will augment critical systems with embedded intelligence and automated technologies.
7. AI Efficacy: By 2025, 60% of CIOs will rely more on operational data collected at the edge to make faster decisions based on real-time multiple-source data.
8. Social Media: By 2026, 40% of CIOs will be responsible for using technology ethically to gain insights into employee experiences and perceptions of the company’s offerings while amplifying the brand.
9. Sustainability: Through 2027, 80% of CIOs will prioritize clean information technology selection, holding partners accountable, and managing systems with sustainability metrics.
10. IT Budget: By 2026, with over 40% of IT spending as a service, short-duration capex cutting tactics will be constrained. Instead, lasting opex resets of 10% to 30% in software and resources will be required.
The evolving role of the CIO in today’s digital landscape is crucial for organizations’ success. As technology continues to advance rapidly, it is essential for CIOs to adapt their skill sets and develop strong relationships with business counterparts to effectively align technology with business objectives.
In conclusion, while the role of the CIO may face challenges from LOB counterparts, CIOs who possess the right mix of skills and build strong relationships with their business counterparts will play a critical role in leading digital transformation and ensuring sustainable business outcomes.