According to Foundry’s recently released 23rd ‘Annual State of the CIO’ survey, most organisations today must grapple with several converging trends reshaping the role of the CIO. For example, cybersecurity remains a persistent threat to business operations; AI disrupts conventional business processes and gives rise to a new generation of business tools; while economic pressures compound the challenges, requiring leaders to automate tasks to work more efficiently with less staff and resources.
Against this backdrop, the role of the CIO is undergoing a profound transformation, with 85% of CIOs perceiving their position as evolving into that of a ‘changemaker’ within the organisation, increasingly leading business and technology initiatives. As businesses adapt to the evolving technology landscape, today’s CIO not only addresses immediate IT challenges, but must also proactively drive innovation and navigate the complexities of a changing business landscape.
“We’re observing that CIOs are increasingly being challenged to drive efficiency, enable productivity and modernise their tech-stacks to adapt to changing business needs,” said Amy Bennett, Global Editor-in-Chief at Foundry. “The evolving trends underscore that the role of the CIO has never held greater significance for the overall success of the business, and with that we are seeing a collaborative partnership between IT and business leaders.”
Cybersecurity Remains a Real Risk
In the face of persistent threats marked by significant attacks on organisations of varying sizes in recent years, cybersecurity continues to be a top-driver for technology investments. The crucial need to protect both corporate and customer data is the top reason CIOs expect their technology budgets to increase in 2024 (49%). It also continues to be the primary focus of CIOs daily endeavours.
Cybersecurity’s importance to an organisation isn’t simply preventing cyberattacks or safeguarding data, but has increasingly become a compliance concern. For instance, the US Securities and Exchange Commission now requires public companies to disclose cyber incident details, and according to Foundry’s latest Security Priorities study, almost half of security executives say that the new SEC regulations are impacting how they handle cybersecurity initiatives at their organisation. Key sectors like oil, gas, and healthcare also face industry-specific cyber regulations from both regulatory bodies and federal agencies.
The Rise of AI
Some 80% of CIOs said their involvement in AI/ML will increase over the next year – up from 55% in 2023.
Due to its perceived automation and efficiency benefits, CIOs say that AI additions are highly sought-after across their organisations. Currently, 71% of CIOs are collaborating more closely with line-of-business teams on AI applications, reflecting a growing synergy between technology leadership and business functions. Notably, 62% of CIOs acknowledged that line-of-business executives are advocating for the adoption of AI-enabled products and solutions within the organisation.
Because so many tools are emerging, CIOs report that researching and implementing AI-enabled products ranks among the top-five priorities the CEO has for IT in the coming year and will be the third significant factor driving tech budgets in 2024, trailing only behind cybersecurity and rising costs of technology and services.
The Economic Need for Efficiency
As organisations intensify their efforts to optimise resource utilisation and achieve positive business outcomes, a pivotal strategy emerges—leveraging workflow and process automation. This approach proves indispensable in the quest for efficient growth, enabling IT decision-makers to shift their focus from functional, repetitive tasks to strategic innovation.
In fact, increasing operational efficiency and transforming existing business processes through automation and/or integration were the top-two business initiatives CIOs expect will drive IT investments in 2024, and business process automation ranks among the top-five strategically important technology initiatives, underscoring its significance for operational excellence and efficiency within organisations
CIOs Will Control Bigger Budgets
Anticipating the impact of these trends, 54% of CIOs surveyed expect their technology budgets to grow in 2024. And, as corporations continue to redesign business processes, CIOs expect a significant shift in ownership of technology budgets.
Looking ahead, over 70% of departmental tech-platform budgets are projected to move under IT’s purview within the next 12 months.
Collaboration is Key
In the current landscape, effective guidance and evaluation of tech purchase-decisions hinge on a cohesive partnership between CIOs and CEOs. This collaboration is evident in today’s leadership, with two-thirds of line-of-business representatives characterising their CIO or top IT executive as either a strategic advisor (41%) or consultant (25%).
CIOs agreed that collaboration is key, with nearly 80% saying they have a strong educational partnership with the CEO and/or Board, as well as with their line-of-business colleagues.
Obstacles Ahead
Despite the growing importance of the role of CIO, one notable struggle they face is the delicate balance between business innovation and operational excellence with 75% expressing difficulty in finding the right equilibrium. The challenges mostly forcing CIOs to redirect their focus away from strategic and innovative tasks include:
- Staff and skills shortages (59%);
- changing business conditions (43%); and
- persistent security threats (43%).
These multifaceted challenges underscore the intricate landscape that CIOs navigate, demanding a nuanced approach to addressing, not only the strategic aspects of their role, but also the operational intricacies that impact the organisation’s overall effectiveness. As technology evolves and business dynamics shift, CIOs find themselves tasked with overcoming hurdles to ensure a harmonious integration of innovation and operational efficiency within their leadership responsibilities.