For the first time in almost ten years, the Directors believe that technology can make a difference. But it is the best of the CIO position to the business technology agenda?
Despite the industry hype that largely followed the set of arguments in the 2003 Harvard Business Review article by Nicholas Carr, "it doesn't matter".
Carr said that rather than use to gain an advantage, most companies should spend less on technology.
"In the years 2003-2007 Nicholas Carr's ideas were almost believed it," said Gartner fellow Mark Raskino. "Business has been about standardization and outsourcing, and was seen as a function of commodities. The directors hired CIOs to be more efficient. "
Changed his mind about the technology of the latest Gartner CEO and business executive survey shows Citi's head. Raskino said: "the Directors are really interested in technology as a factor in the business, which is something we haven't seen since 2001."
Gartner, the directors make their top five business priorities for 2014-15. The most obvious growth, costs and profit, the survey showed technology as the fourth highest priority for directors.
Raskino said that this shows that the Directors now want to take advantage of the digital era, with mobile, social, cloud, big data, and online strategy.
"Technology is the key," he said. "It's not about internal efficiency more."
Most of the technologies explicitly mentioned in the survey were those associated with the options front office/revenue win. Responses made it clear that the directors of the brains have been set up to use the technology for growth, rather than the internal cost and efficiency, said Gartner.
"CEOs want to get customers and staff, using technology," Raskino said. "They are looking for growth in the domestic market because emerging markets are slowing down and want to use digital marketing."
Is digital means, take a different approach on products and services. Google, for example, has set the agenda for the automotive industry by developing an autonomous car.
Gartner also asked respondents about their most important technology enabled investment in the next five years. This year, the top of the list is dominated by the "front-office" technology related options that are used to help in the area of sales and marketing. Gartner also noted a strong interest in the creation of the business operations in the cloud and in the use of data-driven decision making through business analytics, big data and science data.
The directors are on the way to defining their business strategies in the digital era. Gartner study found that some managers do not distinguish between an old-fashioned approach to it, and this new era. Raskino said that many are still on the page e-commerce from the perspective of their strategy, dating from the year 2003. According to Gartner, only a quarter of you really understand where it is going to be digital, the use of mobile commerce and the internet of things. "Several directors for the app [could be used] to run your car," Raskino said.
While the directors are trying to deal with this emerging digital era, the CIO is stuck in a time warp before the recession, cost control was considered to be the highest priority.
An overview of more than 100 C-level executives conducted by Wakefield research for Avanade announced that 37% of the budgets allocated for technology in 2014 is now controlled by the Business Department. This means that more than one-third of the total technology company is buying the business people who do not report to the CIO.
Digital leaders need agenda, and no current commercial head provides this creativity
Mark Raskino, Gartner
Raskino added: "If you look at the CIO strategic documents and strip off the logo, can be from any company. CIO business orientation includes the SLA and the function of the Department, rather than a business. Digital leaders need agenda, and no current commercial head provides this creativity. "
From CIO strategy perspective, the digital era could not buy off-the-shelf, Raskino said. "It is not a package of competencies, unlike ERP, CRM and supply chain management. There are no frames, organizational structure or people who can borrow from the consulting firm you how to change your business. "
The digital era is more about traffic patterns, such as, for example, whereas, as social or mobile technology is changing the bottom line. The return on investment is less clearly defined in comparison with traditional packaged IT solutions.
Raskino, warned that the role of the CIO is a type of cast. "CIO lived under the control of costs and they don't look like the agenda setters," he said. "It causes a lot of CIO.
"CIO order another package from the IT industry. Now the business has to be creative, and it's not for creativity and enhanced cooperation, therefore, the directors are hiring digital leaders. "
Directors need to CIOs who are agenda setters, Raskino said. It's all about leadership and directors need confidence in the ability of people to the digital agenda.
The directors will be difficult to hire the right people to carry out the role of the digital leader, Raskino said. "There are some digital leaders in retail and media who are doing the ' digital ' for 10 years, and occasionally it will be people from the business and consulting firm environment. But true talent is scarce and home talent takes time. "
For example, last October, McDonald's hired Atif Rafiq as your first digital Director (CDO). Luke was formerly CEO of the Kindle directly on Amazon and was taken to lead McDonald's global digital strategy, focusing on future growth in e-commerce, to modernize the restaurant experience and involvement with consumers across the digital landscape.
While the CDO role evolves, is largely considered to be a service function for the business. In fact, 35% of companies IT departments now mainly services provider, Avanade's research found. And it is extended to 58% over the next 12 months, which may not be good news for the CIO, is planned at the forefront of the digital era.
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