Trends That Your CIO Is Noticing
Given the inundation of data from the internet of everything, today's CIO's have a major problem on their hands. What data matters and what data can be used? One example of where this has become extremely topical is in selection, implementation, and improvement of enterprise resource software. Enterprise software has simplified the way businesses incorporate data into their operations; yet many CIO's remain hesitant to endure the process of improving or implementing new strategies in these areas.
For many years, traditional CIO's have aimed to enhance functionality of legacy systems. Cloud technology has since altered that initiative, and is reshaping the mindset of the modern CIO. Businesses now must consider how technology is changing their industry; as well as providing opportunities for growth and development.
Gartner recently conducted a CIO survey. The survey results revealed several challenges facing those in charge of information technology for a dynamic cross-section of businesses; some of which were self-inflicted and others side effects of a changeover to a wholly digital marketplace.
89 percent of CIO's believe investing in modern digital properties are associated with high levels of risk. A primary concern is severance of the control of data, since cloud systems are generally administered remotely by a vendor. Also, CIO's are often concerned with short-run dollar amounts following implementation; however the long-term ROI of these investments can significantly outweigh these risks. The key is understanding how to ensure these ROI models are met. And, managing your own data is often the cause of extremely high costs and lots of wasted time and resources.
Using outside help for implementation and software improvement is essential to saving time and money. For small and midsize businesses this approach is often most effective, as it allows IT Directors to focus wholly on KPI's and reporting and less time with security oversight or high level app integration.
It's often hard for smaller organizations to turn over critical projects to outside parties. However, most smaller organizations are not equipped with the proper time, expertise, or resources to properly execute many of these projects. This leads to inefficient systems staying in place for long periods of time, or bungling of mission-critical implementations.
69 percent of IT Directors agree disciplines of risk management have begun to deteriorate, thus making it harder to buy into new projects. Much of this sentiment most likely can be attributed to the mindset of traditional IT Directors; the ones that are managing 100% of their own data on their own with only the help of a few other employees. The key to managing risk is understanding goals and processes and creating transparency in follow-through and execution.
If businesses conduct proper business process modeling and create a sense of real transparency in implementation, it can be easy to predict ROI and measure progress. However, too many IT departments are overburdened and cut corners in these areas. Ultimately, greater support is needed around these projects to truly mitigate risk.
Changing the C-Suite
Gartner revealed that 31 percent of the average IT budget will be funded outside the actual IT budget. This is because every member of the C-Suite has become conscious of the need for digital transformation this year. CMO's and CFO's are especially hungry for digital innovation; as it allows them to cut costs in many wasteful areas of the business, capture new segments through automation, and increase market share using robust analytic data.
75 percent of CIO's plan to modify their leadership style over the next three years; primarily focusing change in areas of information technology, people, and value. Instead of nurturing legacy hardware and improving current functionality, CIO's will soon be integrating new, quality data from the IoT into agile machine-learning ecosystems, then working backwards from there to build out of business processes in their system. Not only does this change the role of the CIO, but it changes the role of software and technology throughout the business.
Technology-driven innovation is the new normal for midsize market leaders.
Interested in how ERP and CRM can be deployed or integrated into your environment to improve your control of data? Contact Datix ERP software implementation and business process modeling experts today.