The CIO’s 5-year strategy: Reinvent IT top to bottom
- 02 November, 2018 03:44
The most effective CIOs are creating new digital platforms with agile connectivity while modernising and rationalising to jettison the ballast of obsolete systems
In the multiplied innovation economy, enterprises are racing to reinvent themselves as the pace of digital transformation (DX) becomes exponential.
The most effective CIOs are reinventing IT from top to bottom and creating new digital platforms with agile connectivity while modernising and rationalising to jettison the ballast of obsolete systems, reports IDC as it unveils the FutureScape: Worldwide CIO Agenda 2019 Predictions
These predictions, says IDC, will provide a strategic context that will enable CIOs to lead their organisations through a period of multiplied innovation and disruption over the next five years.
The report also reveals the 10 most important shifts that will happen in IT organisations during this period, and will help senior IT executives in the formation of their strategic IT plans.
"In a multiplied innovation economy built on emerging technologies, CIOs must reinvent the IT organisation to enable their enterprise to take advantage of the most powerful wave of the digital transformation,” says Serge Findling, vice president of Research for IDC's IT Executive Programs (IEP).
CIOs need to reinvent IT leadership, by orchestrating armies of bots and automated processes in addition to leading people
“CIOs must also reinvent customer, employee, and partner experiences to strengthen trust and resilience, while learning to live with and manage risks posed by AI and machine learning (ML) by reinventing IT governance.
“Moreover, they need to reinvent IT leadership, by orchestrating armies of bots and automated processes in addition to leading people. CIOs are reinventing IT through IT transformation (ITX).”
Top 10 predictions (2019 to 2023)
The IDC FutureScape summarises the top trends CIOs across the world need to prepare for in the next 5 years:
One: By 2021, driven by LOB needs, 70 per cent of CIOs will deliver "agile connectivity" via APIs and architectures that interconnect digital solutions from cloud vendors, system developers, start-ups, and others.
Two: Compelled to curtail IT spending, improve enterprise IT agility, and accelerate innovation, 70 per cent of CIOs will aggressively apply data and AI to IT operations, tools, and processes by 2021.
Three: By 2022, 65 per cent of enterprises will task CIOs to transform and modernise governance policies to seize the opportunities and confront new risks posed by AI, ML, and data privacy and ethics.
Four: Through 2022, 75 per cent of successful digital strategies will be built by a transformed IT organisation, with modernised and rationalised infrastructure, applications, and data architectures.
Five: By 2020, 80 per cent of IT executive leadership will be compensated based on business KPIs and metrics that measure IT's effectiveness in driving business performance and growth, not IT operational measures.
Six: By 2020, 60 per cent of CIOs will initiate a digital trust framework that goes beyond preventing cyberattacks and enables organisations to resiliently rebound from adverse situations, events, and effects.
Seven: By 2022, 75 per cent of CIOs who do not shift their organisations to empowered IT product teams to enable digital innovation, disruption, and scale will fail in their roles.
Eight: Through 2022, the talent pool for emerging technologies will be inadequate to fill at least 30 per cent of global demand and effective skills development and retention will become differentiating strategies.
Nine: By 2021, 65 per cent of CIOs will expand agile/DevOps practices into the wider business to achieve the velocity necessary for innovation, execution, and change.
Ten: By 2023, 70 per cent of CIOs who cannot manage the IT governance, strategy, and operations divides between LOB-dominated edge computing, operational technology and IT, will fail professionally.