The traditional role of a Chief Information Officer (CIO) is changing and evolving in line with technological advancements and digital disruption. It's transforming into a multi-faceted role that demands technical prowess, customer-centric strategy and strong business acumen to name just a few. The pressure is on for CIOs to have a skill set that will drive customer experience and digital integration, while still possessing the skills to lead a team successfully.
Digital Transformation Technologies
The IDC predicts that worldwide spending on digital transformation technologies will surge to a staggering $2.1 trillion by 2019. This increase coupled with the rise of big data and technologies such as artificial intelligence (AI) and machine learning will put additional pressure on organizations and their CIOs to invest significantly to compete in a ‘disruptive’ market.
Buzzwords such as ‘disruption’ – which originated from a Harvard professor in 1995 and described as “a process whereby a smaller company with fewer resources is able to successfully challenge established incumbent businesses” – often do little more than cause panic. However, buzzword or not, there is no doubt that digital transformation is making waves across all industries. Research has shown that 45% of decision makers within a company feel that their digital footprint is outdated in comparison to their competitors.
Consumer-centric strategy
An increased focus on digital growth is essential, not only to stay ahead of competitors but to ensure consumers are receiving the best experience possible. Customer experience should be at the forefront of digital transformation strategies, and a way organizations can achieve this is through sophisticated analysis of big data to provide actionable insight. Consumers are using technologies such as AI to order their shopping, or record their favorite TV program, so it's no surprise that they expect this level of technology in all areas of their lives, especially in the case of millennial or Gen Z consumers.
US outdoor clothing company, North Face, provides a great example of bridging the gap between online and in-store shopping for their customers. Using IBM Watson's AI capabilities, they have created a ‘personal shopper’ experience online, adding personalization and an increased level of engagement for online shoppers. Aligning existing customer-centric strategies with technology and data-led business decisions can have a huge impact on a customer’s experience and the success of a business in the digital era.
Are CIOs prepared?
Leading organizations through digital transformation can be a challenging process. Research from Capgemini has found that only 35% of organizations have the leadership capabilities required in 2018 for their digital transformations. Taking risks based on extensive analysis of historical data, company data and current trends will become increasingly necessary for organizations and CIOs in particular. Although the role of a CIO is transforming, a higher level of fluidity between C-suite members is also required to ensure all areas of an organization is embracing digital transformation.
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