A Changing Mandate for the CIO
Centralised IT can no longer keep up with the rapid pace of technological change, leaving a gap between the rate of new tech advances and an organization's ability to adopt them. This has led business units to pursue shadow IT initiatives without IT involvement. The role of the CIO must now shift from control to enabling innovation by establishing an innovation platform and frameworks that give the business tools to leverage new technologies in a consistent, integrated manner. As digital transformation increases, more companies are appointing Chief Digital Officers to champion these efforts separately from the CIO, who must now balance multiple roles including managing complexity, responding to emerging needs, and delivering an innovation-ready environment.
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A Changing Mandate for the CIO
- 1. INNOVATION CATALYST A CHANGING MANDATE FORTHE CIO THE PROBLEM WITH TECHNOLOGY PROLIFERATION AND THE ENTERPRISE Centralised IT can’t keep up with change For many companies the rate of technological change outpaced their ability to absorb new advances several years ago. Rate of technology change IT metabolism The IT opportunity gap The consumerisation inflection point Establish and enhance innovation platform, toolkits and frameworks Draw insights on where to improve solutions and customer experience Improved visibility of how new technology is being exploited Compelling platform for the business to leverage Consistent evolution Architecture CIO AS INNOVATION CATALYST THE RISE OF THE CDO Executiveschampioningdigitaltransformation Gartner predict more than 25% of firms will have a CDO distinct from CIO in 2015 with more than 500 already counted and 6% of‘large’ organisations having one in place in 2014. 54% 42% 29% 15% 5% CMO CEO CIO/CTO CDO CXO IT operations Integration Infrastructure THE MANY HATS OF THE CIO... Play from strengths... ...to deliver a digital-ready innovation platform Proliferation of shadow IT initiatives Increased integration complexity in application landscape and infrastructure IT resources consumed by managing complexity IT slow to respond to emerging business needs Business taking IT decisions and initiatives into their own hands The vicious cycle of Control Greater momentum on digital Innovative ideas New tech opportunities The virtuous cycle of Enabling BIG SHIFTSTO ENABLE INNOVATION On-premises data centres Cloud Databases Data models ERPand monolithicsystems Apps and APIs Business intelligence Big data and analytics IT department Networked IT structure TOOLKITS AND FRAMEWORKS INCREASE IN COLLABORATION IT SPEND SHADOW IT “Shadow IT”refers to a business’s IT activity that is out of view of the CIO. 80% 2000 10% 2020 Company’s IT spend controlled by CIO Core IT Edge IT Shadow IT CIO Rest of business 90%66% Business as a whole Digital marketing People who seek help from beyond their immediate colleagues Cyber-security SOURCE Adobe: Digital Distress – What Keeps Marketers Up All Night? SOURCE Altimeter Group Digital Transformation Survery, 2014 SOURCE Gartner estimation SOURCE Dachis Group IT strategy and innovation SOURCE Dion Hinchcliffe CIO RACINGTO KEEP PACE WITH NEWTECHNOLOGY AND BUSINESS NEEDS Enterprise app stores Collaboration networks Co-create environments Rapid integration toolkits Technology incubators Advanced application monitoring