CIOs need to redefine around digital

Today’s CIO can be the customer’s champion as well as an enterprise efficiency enabler by harnessing digital solutions to serve the business.

In today’s evolving and expanding digital market, CIOs are facing greater demands for new skills to complement their traditional expertise. The rise of cloud computing, mobile technology and the IoT is disrupting traditional business models and patterns of employment. On top of that, the growing cost of operations and changing customer buying habits are increasing the interdependence between technology, marketing and finance.

In order to build competitive advantage amidst this disruptive state of affairs, many Australian organisations are undergoing digital transformation. According to a 2016 survey (IDC-Canon Transformation Study, 2016), 82% of Australian businesses are well in the midst of their digital transformation journey. This new landscape is driving a growing need for IT leaders who understand both technology and their business. So what does this mean for the CIO?

In theory, the CIO has a great opportunity to upgrade from the role of IT manager to focus on a broader area. But while a CIO may be valued, they can be less empowered than other business leaders who hold project budgets and are accountable for revenue, such as the chief marketing officer (CMO) and chief financial officer (CFO).

Meanwhile, many enterprises are embracing the role of digital by introducing new C-suite positions, such as chief digital officer and chief data officer (CDO), and moving their budgets away from the CIO and into the business.

The CIO needs to redefine their role as central to the business by articulating the value that can be achieved through digital, by focusing on being a customer champion as well as an efficiency enabler. Let’s take a closer look.

Championing the customer

The CIO and CMO can better collaborate around the customer’s needs, harnessing IT and communications technology to do so. The challenge is building a strong CIO-CMO partnership.

One of the practical ways in which this can be achieved is to put digital technology at the centre of innovation around the customer. Delivering a seamless customer experience is critical not just for revenue growth, but also for winning customer loyalty to drive profitability and long-term revenue stability.

For example, connectivity is a critical aspect of services delivery and performance. Having efficient infrastructure is only one element in the equation for success. End-user expectations are fundamentally important, as are security and technology and partner management. This is where the digitally connected CIO has an opportunity to help the CMO better manage customer data.

For example, developing a mobile app to create a personal, ‘smart stadium’ experience for sports fans who can use the app to buy their tickets and book parking spaces in advance. On the day of the game, the app will guide them to their parking space and right to their seats in the stadium. Such innovations are essential if the CIO is to become the customer’s champion, by driving agendas of customer centricity, segmentation and personalisation.

Business IT alignment

With the rise of connected technologies, many organisations collect data from equipment, devices or other connected endpoints with the view to using that data for a business purpose. In addition to customers, today’s enterprises generate deep insights on employee activity and asset status through data collected via digital technologies. As with customer data, this is then analysed with feeds also added from social media, all filtered through cloud-supported analytics. Actionable insights generated from this data aid in improving all aspects of the supply chain, financial processes and strategic planning.

For instance, Australian organisations are turning to blockchain technology to open new opportunities for customers to connect and engage with them. Such was the case for a local sporting organisation, which is evaluating the role of blockchain technology in disrupting ticket sales by looking for a way to sell tickets directly to customers and avoid the middle man. This opens the opportunity for the CIO to play an important role in solving business inefficiencies with new application solutions, marrying digital transformation with technical expertise.

Summary

In our digitally driven world, the CIO has the potential to emerge as the customer’s champion on one hand and an enterprise efficiency enabler on the other. By harnessing digital solutions to serve the business, the digitally connected CIO can empower the CMO and CFO by introducing more effective enterprise performance management as well as driving customer centricity. Digital transformation requires digital risk. Now is the time to take the leap and delve into the ever-growing digital market.

Pictured: Kevin Griffen.

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