Unfortunately, that’s not happening in most companies.
In fact, the research firm, Gartner, estimates that, “Enterprises realize on average only 43 percent of technology’s business potential.”
The big question: How can IT departments drive that number up?
If IT departments hope to maximize their impact in this day and age, they must focus their attention on the right priorities–which falls squarely on the CIO’s shoulders. So, what key areas must CIOs focus on in the near future? To help you answer that question, I’ve solicited feedback from industry experts and compiled their advice (as well as some of my own) below. Here are a few strategic priorities that CIOs must focus on in the near future.
In the past, IT controlled the business user’s devices. That has changed. Now, users bring in their own devices (with or without IT’s knowledge), and use them for work-related tasks. The big problem: Controlling these user-owned devices is nearly impossible.
“I think one priority is to tackle the BYOA and BYOD movement that is going on since it is having an impact on the workplace,” says Andrew Dixon, SVP at Igloo Software. “We find that once a user brings their own device, they will also bring their own applications, …and this welcomes security concerns for the IT department. This is also becoming an issue with CIOs where their job is to manage workflows and information.”
As technology rapidly evolves, many CIOs feel pressure to apply new technology to their business…just because it’s new. However, the true challenge for CIOs is determining which new technologies help the business, and which to avoid.
“As a former CIO in the insurance industry for many years, my experience was that strategic priorities did not tend to shift as much with technology changes as they did (and do) with the potential for applied business value those technologies offer,” says Frank Petersmark, CIO Advocate at X by 2. “Put another way, the rapid changes in technology become the tools and processes CIOs will use to enable their companies to achieve its strategic goals and objectives.”
Petersmark goes on to explain this concept further: “For example, technology trends such as Big Data, Cloud services, and mobility all become means to ends in the hands of experienced CIOs whose strategic priorities include customer intimacy, flexible and agile infrastructures, and customer service and responsiveness respectively. Yes, all of these trends are important in their own technological spheres of influence, but they need to be applied in the context of their value to a particular organization and its strategic goals for their markets, customers, and employees. The key for CIOs then as now, is to take these technologies and turn them into something strategic for their organizations.”
photo credit: FutUndBeidl via photopin cc
Many companies have no plans for the cloud. They prefer to keep their applications and data in-house and manage everything themselves. Don’t worry, I’m not here to convince you otherwise.
However, regardless of your plans, you must still prepare your company for the possibility of a future cloud move. After all, who knows what the future holds? Maybe cloud hosts evolve to the point that your company feels comfortable moving your data and applications off-site. Or, maybe you set up an internal cloud on a different database.
The main point: You must create portable applications today that won’t hold your company back in the future…whatever that may hold.
With the rise of readily available cloud-based software and services, many companies face a growing “Shadow IT” problem. In short, end users are bypassing the IT department altogether, instead purchasing third party SaaS options to meet their needs.
“Research has indicated that origination of demand for IT services from non-IT teams is on the increase,” says Sanjay Maradi, author of the book, “Ride The Flat World – How CIOs can help businesses succeed”. “This means other departments such as marketing, finance etc are either beginning or considering engaging independently with IT service providers. If this is not addressed immediately the relevance of CIO would diminish.”
Will smartphones and tablets ever replace the PC? Who knows? However, there’s no denying that mobile is rapidly becoming an integral part of our daily lives.
Smartphones and tablets have already taken over many tasks formerly performed by PCs. The fact is, businesses must now adapt to a multi-screen world. These days, you have no idea how internal users or customers will access your applications. Maybe they’ll use a PC. Maybe they’ll use a smartphone or tablet. Maybe they’ll use all three. You don’t know, and can’t control it.
“Interoperability is a big element of our IT strategy,” says Michael Clapperton, CIO of George Little Management. “Customers are more demanding on the products they use on the desktop as well as mobile devices, at the end of the day we all have to communicate with one another and systems need to send and receive usable data. The day of closed systems is coming to an end.”
I couldn’t agree more: Closed applications and systems built on proprietary languages/frameworks are on the way out. Future development efforts must not only focus on the system or application itself–it must focus on how that system/application works with others.
While this may sound like a recurring CIO priority, I believe it’s now more important than ever. As mentioned previously, IT departments must better address the business user’s needs, or risk being bypassed. To do so, CIO’s must eliminate non-essential activities that stand in the way.
“Another element we look at is the ability to outsource non core activities and focus on value creation,” explains Clapperton. “I don’t mean sending IT work overseas. The long term benefit of that movement is waning, I am referring to moving as many services to the cloud as possible. I no longer want to own or maintain software or hardware. There is no reason for small or mid sized firms to own equipment for standardized services.”
I believe that IT departments have an enormous opportunity to really make a difference in their companies. How? Much of this comes down to shifting their focus away from maintaining the status quo, and on to key strategic priorities (like the points listed above). Of course, if you can think of any other priorities to add, I’d love to hear it in the comments.
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