CIOs and IT leaders must take action to accelerate time to value and drive top- and bottom-line enterprise growth from digital investments, according to Gartner, Inc.’s annual global survey of CIOs and technology executives.
The survey analysis revealed four ways in which CIOs can deliver digital dividends and demonstrate the financial impact of technology investments. In this blog post, we will summarize the findings of the survey and provide recommendations on how CIOs can deliver digital dividends.
1. Prioritize the Right Digital Initiatives
The first way that CIOs can deliver digital dividends is by prioritizing the right digital initiatives. For some CIOs, this means stepping out of their comfort zone into customer-facing programs that will have an effect on revenue streams for years to come.
In other cases, it might mean prioritizing back-office automation over new software development projects which can be costly and time-consuming if not done correctly. So CIOs should make sure they know what their organization needs before making any major decisions!
The survey also revealed two main themes: firstly, more investment in AI (32%) compared with hyper-automation(22%). Secondly, the main focus of CIOs’ is process optimization than growth. As a result, the top areas of IT investment are cyber and information security (66%), business intelligence/data analytics (55%), and cloud platforms (50%).
When making decisions about which initiatives to prioritize, CIOs should consider four key factors: business alignment, customer experience, operational excellence, and organizational agility.
- Business alignment means that the initiative should support the organization’s business goals.
- Customer experience means that the initiative should improve the customer experience in some way.
- Operational excellence means that the initiative should improve efficiency or reduce costs.
- Organizational agility means that the initiative should enable the organization to be more flexible or responsive to changes in the market.
By considering these factors when making decisions about which initiatives to prioritize, CIOs can ensure that they are making decisions that will have a positive impact on the business.
2. Create a Metrics Hierarchy
A key ingredient needed for accelerating the delivery of these benefits is accountability. But what is an example of accountability in action? CIOs should connect with functional leaders for each digital initiative to understand what "improvement" means and how it can be measured.
Creating a picture that reflects the hierarchy on technical, business outcome metrics will help identify who has responsibility over certain aspects within your company's initiatives - this way there are no surprises or slip-ups when delivering dividends!
A metrics hierarchy is a framework for thinking about how different types of data can be used to measure progress toward specific objectives. The four levels of the metrics hierarchy are vanity metrics, engagement metrics, conversion metrics, and business outcomes.
- Vanity metrics are measures of activity that do not necessarily indicate whether or not an initiative is successful.
- Engagement metrics are measures of how engaged users are with an initiative.
- Conversion metrics are measures of how many users are taking action as a result of an initiative.
- Business outcomes are measures of how an initiative is impacting the business’s bottom line.
By creating a metrics hierarchy, CIOs can ensure that they are measuring progress in a way that is aligned with their organization’s goals.
3. Contribute IT Talent to a Business-Led Fusion Team
To achieve business goals, CIOs should embrace democratized digital delivery by design and empower those outside of IT. Especially technologists like engineers or marketers who are able to build capabilities faster than traditionalist business users. This will allow them access key resources necessary for delivering innovative products with great speed.
The third way that CIOs can deliver digital dividends is by contributing IT talent to a business-led fusion team. A fusion team is a team made up of members from both IT and business who work together on an initiative from start to finish.
Fusion teams have been shown to be more effective than traditional teams at delivering digital initiatives because they combine the best of both worlds: the deep technical expertise of IT with the deep business knowledge of those who work in the business units.
One study found that fusion teams were twice as likely as traditional teams to meet their objectives and deliver value to the business. And, fusion teams are not just internally-focused anymore! You can have external vendors or procurement buyers like CloudEagle join your existing staff. CloudEagle’s procurement buying experts can bridge the skill gap in your procurement team on demand.
4. Reduce the Talent Gap with Unconventional Resources
The fourth way that CIOs can deliver digital dividends is by reducing the talent gap with unconventional resources. There is currently a shortage of workers with skills in areas such as artificial intelligence (AI), machine learning, big data, and cloud computing.
As a result, many organizations are struggling to find workers with these skills. One way that CIOs can overcome this challenge is by looking for talent beyond traditional sources. For example, rather than only looking for full-time candidates who can work from office, CIOs should also consider gig workers and remote workforce. By looking for talent beyond traditional sources, CIOs can ensure that they find workers with the skills they need to be successful.
CIOs should consider unconventional means like procurement outsourcing because it can the efficiency and effectiveness of the procurement processes. Outsourcing providers like CloudEagle have the experience and expertise to manage all aspects of the procurement process, from sourcing and contracting to performance measurement and reporting.
These are just a few recommendations from Gartner’s 2022 Global Survey of CIOs. In order to accelerate time-to-value and drive enterprise growth through digital investments, it’s important for CIOs and IT leaders to take action now.
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