From backstage to center stage, the role of the CIO expands
from technical guru to business leader
NEW
YORK, June 4, 2024 /PRNewswire/ --
Key takeaways
- Shaping, aligning, and delivering a unified tech strategy and
vision is the biggest priority for CIOs surveyed this year
(46%)
- Only a third of technology leaders grade their organizations as
leading edge in talent management, optimizing IT strategy, and
sustainable IT
- The role of the CIO is being elevated with nearly two-thirds
(63%) of technology leaders saying they report directly to the
CEO
- Those surveyed said that CIOs in 2024 need to exhibit a range
of tech and business traits, including enabling transformation and
innovation (59%), delivering topline value (57%), and serving as
change agents (54%)
Deloitte's CIO Program conducted a survey outlining the views of
technology leaders in the U.S. about their near-term priorities,
performance, and the characteristics necessary to address today's
most pressing business issues.
Why this matters
As technology continues to transition
from being a tool for conducting business to becoming the business
itself, tech is at the forefront of CEOs' minds. The majority of
CEOs surveyed (57%) plan to embed new technologies in their
business model to find opportunities for growth, further validating
that this is the golden era of the CIO.
Nearly two-thirds of technology leaders surveyed report directly
to the CEO, highlighting how the CIO role is being elevated within
businesses. Of those surveyed, most have a CIO or CDIO (83%) in
their organization with the CTO being the next most common (52%).
Of publicly traded companies, the primary technology roles are
CIO/CDIO (57%) and CTO (35%).
CIOs should exhibit a range of tech and business traits,
including enabling transformation and innovation, delivering
topline value, and serving as change agents. Tech leaders should
show up differently to help bridge the gap between ambition and
execution and drive business value through emerging technologies.
Learn more here.
The CIO Check List: Top Priorities
The increased
importance of technology often means CIOs have an expanded mandate.
They need to work to meet the role's operational responsibilities
while also creating advantage by driving business outcomes. Tech
leaders surveyed selected the following as their organization's top
three priorities for this year:
1. Emerging technology: Staying
ahead of emerging technologies and solutions (ex. AI/GenAI,
Quantum, AR/VR, etc.)
2. Data and artificial intelligence (AI): Embracing the full
potential of data, analytics, AI and machine learning
3. Cyber Security: Mitigating cyber risks and
preventing cyber incidents and attacks
3. Advocating tech strategy (TIE): Organizing,
managing, and rationalizing technology strategy inside the
organization
Despite the rise in, and focus on, AI, only one-third (35%) of
technology leaders said that embracing its potential or that of
data, analytics, or machine learning is their number one priority.
Furthermore, only 30% of respondents reported having a chief
data/analytics officer (CDAO) within their organization and 28% of
respondents acknowledge that their organizations are at the
forefront of these technologies.
Company size also seems to impact the focus on cybersecurity,
with two in five CIOs and technology leaders (43%) at companies
with 10,000+ employees saying mitigation and prevention of cyber
incidents is an important priority, while only one-quarter (26%) of
leaders at companies with less than 10,000 employees say the
same.
Key quote
"How technology leaders balance growth
priorities with the risk implications of emerging technology
matters more than ever," said Lou
DiLorenzo Jr., National U.S. CIO program leader at Deloitte
Consulting LLP. "Beyond the ability to articulate the interplay
between technology and business value, they should also demonstrate
a command of how issues like cybersecurity, privacy and
consumer trust manifest are maintained."
Today's CIO: Technology-centric or
business-minded?
The research further supports the
importance of technology within organizations as nearly two-thirds
(63%) of technology leaders surveyed now report directly to the
CEO. Within the technology and energy/chemicals industries, this
number is even higher with more than 4 in 5 CIOs/CDIOs in these
sectors answering directly to their CEO.
The role tech is playing within business also seems to be
impacting the expectations of tech leadership. When asked to rank
the defining characteristics of a leading CIO, respondents were
split between the conventional (those viewed by themselves and
others as running IT) and contemporary (those embracing the
opportunity and reinventing the CIO role), saying the traditional,
more IT-centric qualities are just as important as the strategic
and more customer-focused ones.
Conventional
CIOs
|
Contemporary
CIOs
|
A technical guru
(46%)
|
A change agent
(54%)
|
An expert in providing
internal technology
support (55%)
|
An expert in working
directly with clients
(45%)
|
Mitigates risk
(50%)
|
Takes risks
(50%)
|
Achieves operational
efficiency (41%)
|
Enables transformation
& innovation (59%)
|
Manages bottom-line
cost (43%)
|
Delivers topline value
(57%)
|
A leader in technology
(59%)
|
A business leader
(41%)
|
Executes business
priorities (51%)
|
Influences business
strategy (49%)
|
Key quote
"The role of the CIO has evolved
significantly; merely being the technical expert within the
organization is necessary but insufficient," stated Anjali Shaikh, managing director and U.S. CIO
Program Experience director at Deloitte Consulting LLP. "Today's
CIOs may need to primarily be business and people leaders - a stark
departure from the role's expectations three decades ago, which
primarily centered on technology delivery. In an era where
technology is the backbone of business, tech executives who adapt
to change and foster a growth-oriented mindset are likely better
positioned to propel their businesses toward competitive edge and
innovation."
Opinions on the required characteristics for CIOs uncovered some
nuances by company size. Technology leaders at large companies may
be called upon to take more risks for their organizations. When
selecting the most in-demand traits, more than half (59%) of
respondents from large companies (10K+ employees) selected risk
taking as a characteristic of a CIO versus 43% of respondents from
small companies (5K-9.9K employees). Additionally, tech leaders with
small companies were more likely to say that CIOs should be experts
in providing technology support (60%), while those at large
companies lean toward tech leaders who are adept at working
directly with clients (51%).
CIO Enterprise-Assessment: Strong Points and Areas of
Development
Deloitte's survey revealed a gap between what
CIOs prioritize and execute, with one-third or fewer CIOs give
their organizations an "excellent" grade in how they are executing
against top CIO priorities. About one in ten grades their
organization as "lagging" or "failing" on top CIO
priorities.
Below are the top areas where technology leaders say they
believe their organizations are leading the way and where they feel
they are trailing competitors or at serious risk:
Leading Edge
- Talent Management (34%): Attracting, engaging and
reskilling technology talent
- Optimizing IT Strategy (32%): Organizing, managing,
and rationalizing technology strategy inside the organization
- Sustainable IT (32%): Impacting environmental
sustainability through technology and data
Trailing Their Competitors or at Serious Risk
- Risk Management (12%): Mitigation of cyber risks
and prevention of cyber incidents and attacks
- Growth Strategy (10%): Establishing innovation
capabilities to drive growth
- Keeping Current (10%): Staying ahead of emerging
technologies and solutions
Key quote
"The job of a CIO today isn't easy – it's a
dynamic, demanding, and critical role that shapes the future of the
organization," said John Marcante,
CIO-in-Residence, Deloitte U.S. CIO Program. "As technology and
corporate strategy become more intertwined, CIOs can be
indispensable members of the executive team who can serve as the
primary drivers of growth while ensuring efficient, secure, and
nimble operations."
In addition to rating their organization's ability to execute
against 10 leading CIO priorities, respondents were also asked
about the biggest personal barriers they face in their role. The
breadth of responses indicates how difficult and expansive the role
has become; CIOs aren't facing just one challenge when it comes to
developing and executing the strategic direction of technology
within their organizations; they're facing many.
The biggest barrier those surveyed cited is measuring,
communicating, and demonstrating the value of technology (15%),
followed closely by integrating technology across the organization
(14%), finding time to stay updated on innovative technologies
(13%), and having the needed capacity and resources to deliver
technology capabilities (13%).
Methodology
We conducted an online survey among 211
U.S.-based CIOs and technology leaders from February 9-18, 2024. Participants were screened
based on title, company size, company revenue, and responsibility
for setting the strategic direction of IT within their
organization.
About Deloitte
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and thousands of private companies. Our people deliver measurable
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at www.deloitte.com.
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SOURCE Deloitte