CIO in the spotlight
Digital transformation and the shift to remote working have put CIOs front-and-centre in the business. What skills do the CIOs of today, and of the future, need in order to steer their organisation to success?
What does your chief information officer (CIO) do? If you asked a company that question twenty years ago, they’d probably have replied “they maintain our IT infrastructure”. But times have changed — and so has the CIO.
“In my time as a CIO, the job has evolved massively,” says Mark Hill, CIO at Tenth Revolution Group, a cloud technology recruitment specialist. “That shift has been driven largely because IT, and specifically data, has become the most valuable and transformational aspect of any business.”
Indeed, almost every company is now driven by technology rather than served by it. User expectations, both internally and externally, have also increased dramatically now that technology is woven into almost every aspect of our daily lives. So it’s no surprise that the CIO role has grown in stature within most organisations.
To retain value, the CIO role requires forward-looking visionaries, who are technologically curious in order to keep up with the pace of digital innovation
Formerly characterised as back-office execs whose job is to keep the IT lights on, “CIOs are now seen as a key part of the company’s leadership team, driving strategic business performance and activities that create business value with other executives at the top of the business,” says Jason Vazquez, CIO at Sterling National Bank.
As well as helping to digitally upskill their organisations, CIOs also need to implement the tools and technologies that will deliver market-leading customer experiences and drive business growth. Sourcing talent and developing strategic partnerships with SaaS and cloud providers is another important element of their job. And as their role becomes more outward focused, they’ll increasingly need to work with other business leaders to deliver technologies that will meet changing consumer demands.
Sterling National Bank, for example, has invested in automation technologies such as the Amelia conversational artificial intelligence (AI) platform, allowing it to deploy its own AI-powered digital customer service colleague called Skye. “Investment in leading-edge technologies, like Amelia, has helped promote the business value aspects of my role as CIO,” says Mr Vazquez. “Members of my team have been given seats at the business table because we drive digital change and help to solve customer needs and expectations in an innovative way.”
Over three quarters (76 per cent) of survey respondents to Gartner’s 2021 CIO Agenda Survey said that demand for new digital products and services increased in 2020, with even more respondents (83 per cent) reporting that it will increase in 2021. “To retain value, the CIO role requires forward-looking visionaries, who are technologically curious in order to keep up with the pace of digital innovation,” says Chris Underwood, managing director at Adastrum Consulting.
These visionaries will be able to advise the rest of the C-suite on the pros and cons of applying new technologies to current processes. “CIOs can also weigh in on the value of using new technologies to create completely new processes that equip the business to accomplish goals that previously weren’t possible,” says Akash Gupta, co-founder and chief technology officer (CTO) at GreyOrange, which creates advanced robotics systems for automation in warehouses.
They’ll still need to balance innovation against security and governance requirements, of course. And the chief executive offer (CEO) and main board’s view on the strategic importance of technology will influence how their insights are received. “If the CIO reports directly to the CEO and sits on the Executive Committee then that’s a sure sign that the role is seen as strategic,” says Brian Jones, Bloor Research chairman and former CIO of four FTSE100 companies. “If they report to the CFO or even a COO where one exists, that usually means that the function is seen as less valuable.”
Nevertheless, almost every CIO has experienced a jump in status during the COVID-19 pandemic. The need for a rapid mass shift to remote working emphasised the importance of strong digital capabilities and accelerated digital transformation plans by years almost overnight. But there’s still a lot of work to do in terms of shoring up business continuity strategies and building a resilient, agile infrastructure.
"As the world leans more heavily on its digital services to maintain as much normalcy as possible, businesses simply cannot risk the damage to their ability to operate, and their reputation, that security breaches bring with them,” says Mr Hill. “And that will mean a more proactive, centralised role for the CIO in business decisions that might not previously have been considered the remit of the IT department.”
Yvonne Wassenaar, CEO of Puppet, a provider of IT automation solutions, describes the modern CIO as an orchestrator and educator, someone who ensures that the applications used by different business units are properly integrated and supportive of strategic goals. “Many tools may not have the right kind of security and scalability out of the gate,” she says. “You need somebody who can sort through all that and orchestrate the different pieces that are spread throughout the company.”
As digital technologies and services continue to expand both internally and externally, the CIO may well take on an even more strategic role within the business, working closely with the CEO or even, like Ms Wassenaar, who was formerly CIO of New Relic, progressing to that role themselves. So if you ask the question “what does your CIO do?” ten years from now, don’t be surprised if the answer is radically different to the one you would receive today.