IBM report: The CIO Revolution is here

Because the pandemic, CIOs’ stature has grown, and 52% are partaking with their CEOs greater than some other C-suite chief, based on a newly launched IBM research.


Picture: iStockphoto/milindri

A digital enterprise mannequin is rising that’s based mostly on the pace and scale of cloud applied sciences, notably, hybrid clouds, and the speedy outcomes generated by combining synthetic intelligence and automation. That is resulting in “radical agility” inside organizations and taking middle stage to unlock new worth streams is the CIO, a brand new IBM report finds.

“The concept that the enterprise leads know-how technique is now out of date,” mentioned Laura Cash, CIO at Solar Life Monetary, within the report. “Enterprise technique is developed in partnership with our know-how technique—as we share a typical aim of placing shoppers first and making it simpler to do enterprise with us digitally.”

CIOs are driving transformation and enterprise worth at an astonishing tempo, the report mentioned. “Again in 2011, only one in 5 CIOs ranked themselves as a vital enabler of enterprise/group imaginative and prescient,” the report mentioned. “Now, they’re collaborating with colleagues to satisfy fast-changing calls for and driving worth all through their enterprises and past.”

SEE: EY: C-suite leaders report stronger tradition and better productiveness with hybrid strategy (TechRepublic)

Tech adoption has been accelerating and turning into an inextricable a part of each group and enterprise perform through the pandemic. On the identical time, the IT perform “has grown dramatically in scope and complexity,” the report mentioned. The function of know-how leaders has expanded not simply in breadth, however more and more in strategic affect.”

The flexibility to adapt to the unknown and rework dangers into alternatives might be indispensable, the report mentioned.

The CIO’s new identification

The report quotes a number of CIOs who likened their roles to that of a “chief working officer of know-how,” aligning to enterprise targets and enterprise outcomes.


Picture: IBM

“IT is concerned in each practical unit,” mentioned John Gibbs, CIO at Worldwide Airways Group (mother or father firm to British Airways). “The function of the CIO is turning into much less of a tech chief and extra of a enterprise chief. It is the way you apply the know-how that makes a distinction.”

As a result of IT groups work throughout the group, the report mentioned CIOs have a novel alternative to share finest practices throughout features. “The CIO function is turning into extra horizontal,” mentioned Steve McCrystal at Unilever. “We attempt to get rid of silos and align to enterprise outcomes.”

Throughout a interval of widespread nervousness and office disruption, know-how leaders have been central to addressing their organizations’ most urgent wants. Citing examples from tackling provide chain points to serving to guarantee enterprise continuity to enabling distant work, 77% of the CIOs within the research reported that their groups performed a significant function of their organizations’ response to the pandemic.

Analysis from IBM’s Institute for Enterprise Worth additionally discovered that the pandemic has prompted 55% of organizations to completely course-correct their methods. This consists of accelerating the tempo of digital transformation, adjusting the strategy to vary administration and shifting to extra cloud-based enterprise actions.

“Curiously, solely 23% of CIOs in our research count on pandemic-related shifts to distant workplaces to turn out to be everlasting,” the report famous.

Main the cost for change

Respondent CIOs reported that 20% to 40% of organizational enterprise processes have been automated—from provide chain to manufacturing, finance to procurement, and advertising and marketing to R&D. This automation helps drive clever workflows, which in flip create a “golden thread” of worth, enhancing connections inside the enterprise and throughout its ecosystem, the report mentioned.

The tech revolution continues to speed up, primarily via cloud implementations, which the report mentioned characterize an rising portion of present IT workloads.

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“This displays the swift and rising embrace—and effectiveness—of cloud-native platforms, specifically, their proficiency for connecting and activating information to boost engagement and collaboration,” the report mentioned.

Considerably, when respondent CIOs had been requested to replicate on their organizations’ transformations, a dramatically elevated quantity reported increased ranges of maturity of their hybrid cloud operations (a 700% improve in CIOs reporting superior capabilities since 2019), AI-enabled workflows (a 560% improve since 2019), cloud-native growth (a 467% improve since 2019), and different key applied sciences, the report mentioned.

New standing with CEOs; higher alignment with CTOs?

CIOs in the present day handle a posh portfolio, spanning a various set of tasks and constituents. These embody providing know-how providers to a large spectrum of customers, making information insights available, remodeling work environments via productiveness platforms and lengthening workflows throughout enterprise features.

Reflecting their more and more strategic function, 52% of the CIOs within the IBV research reported partaking with their CEOs greater than some other C-suite chief. “This positions CIOs at a vital intersection of their organizations, with a direct connection to essentially the most senior ranges of management and a vantage view throughout enterprise features,” the report mentioned.

On the identical time, the CTO function is gaining rising prominence, giving CIOs “essential allies inside the know-how perform.” At a excessive stage, the know-how perform has a typical set of tasks which can be usually distributed between CIOs and CTOs.

SEE: Google Workspace vs. Microsoft 365: A side-by-side evaluation w/guidelines (TechRepublic Premium)

Greater than 70% of know-how leaders surveyed reported that CIOs personal back-office purposes, together with provide chain, workforce engagement, end-user expertise and office enablement. In addition they typically personal areas together with enterprise continuity, sustainability and information governance and compliance, based on the report.

In distinction, a major majority of CTOs concentrate on know-how technique, operations and structure.

Whereas the research discovered an emphasis on CIO-CTO teamwork, IBV’s analysis additionally revealed “that CIOs and CTOs are sometimes working independently, and typically at cross-purposes.” Solely 45% of CTOs indicated frequent interplay with their CIO counterparts. On the flip facet, simply 41% of CIOs cited frequent interplay with CTO friends, the report mentioned.

The IBM Institute for Enterprise Worth surveyed 5,000 C-suite know-how leaders, together with each CIOs and CTOs. Respondents spanned 29 industries and 45 places worldwide.

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