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CIO & LEADER-November 2017 (1)

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Insight<br />

A<br />

According to 2018 Gartner <strong>CIO</strong> Agenda<br />

Survey, 51% of <strong>CIO</strong>s surveyed in India reported<br />

that they are taking charge of innovation and<br />

49% have indicated that they are heading up<br />

digital transformation.<br />

The survey results show that, overall 95% of<br />

<strong>CIO</strong>s expect their jobs to change or be remixed<br />

due to digitalization. IT delivery management<br />

is taking up less and less of the <strong>CIO</strong>'s time.<br />

Respondents believe that the two biggest transformations<br />

in the <strong>CIO</strong> role will be becoming a<br />

change leader, followed by assuming increased<br />

and broader responsibilities and capabilities.<br />

Globally growth is the No. 1 <strong>CIO</strong><br />

priority for 2018<br />

However in India, <strong>CIO</strong>s reported optimizing<br />

enterprise operational excellence (66%), tracking<br />

business value of IT (64%) and business cost<br />

optimization (62%) as their top priorities. The<br />

good news for <strong>CIO</strong>s in India is that more money<br />

will be available to support these priorities. IT<br />

budgets in India are expected to increase by<br />

7.4% in 2018. This compares to an expected 3%<br />

IT budget increase globally.<br />

Define the role – focus attention<br />

beyond IT<br />

At least 84% of all top <strong>CIO</strong>s surveyed have<br />

responsibility for areas of the business outside<br />

traditional IT. The most common are innovation<br />

and transformation. 51% of respondents in<br />

India said that the <strong>CIO</strong> in their organization is<br />

in charge of innovation while 49% said the <strong>CIO</strong><br />

heads up digital transformation and 30% said<br />

the <strong>CIO</strong> leads enterprise change. The survey<br />

found that <strong>CIO</strong>s are spending more time on the<br />

business executive elements of their jobs compared<br />

with three years ago. In fact, <strong>CIO</strong>s from<br />

top performing organizations are spending up<br />

to four days more on executive leadership. The more<br />

mature an enterprise's digital business is, the more<br />

likely the <strong>CIO</strong> will report to the CEO.<br />

In a change from previous surveys, respondents<br />

were asked to name the top differentiating technologies<br />

(in previous years they were asked about investment<br />

levels). Business intelligence (BI) and analytics<br />

still retain the No. 1 spot, with top performers most<br />

likely to consider them strategic.<br />

Implement the new role<br />

79% of <strong>CIO</strong>s report that digital business is making<br />

their IT organizations more "change-ready," which<br />

suggests that now is a good time to implement change<br />

to the IT organizations, and, in turn, should make the<br />

transition to the new job of the <strong>CIO</strong> easier.<br />

The first part of the new job of the <strong>CIO</strong> is to build<br />

the required bench strength to scale the enterprise's<br />

digital business through support for the digital ecosystem.<br />

This means hiring new resources to put in<br />

place the right digital team structures. Some <strong>CIO</strong>s<br />

favor a separate digital team while others make digitalization<br />

part of the day job of IT. However, 71% of<br />

the top performers have a separate digital team to<br />

help them scale their digitalization efforts. The most<br />

common structure for these teams is to report to the<br />

<strong>CIO</strong>, although the biggest difference between the top<br />

performers and their peers is in the CEO reporting<br />

relationship of these teams.<br />

"The effects of digitalization are profound.<br />

The impact on the job of <strong>CIO</strong> and on the IT organization<br />

itself should not be underestimated," said<br />

Rowsell-Jones. "In this new world, <strong>CIO</strong> success is not<br />

based on what they build, but the services that they<br />

integrate. The IT organization will move from manufacturer<br />

to buyer, and the <strong>CIO</strong> will become an expert<br />

orchestrator of services. The real finding though is<br />

that this is happening now. <strong>CIO</strong>s must start scaling<br />

their digital business and changing their own jobs<br />

with it now."<br />

<strong>November</strong> <strong>2017</strong> | <strong>CIO</strong>&<strong>LEADER</strong><br />

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