eLearningClasses.com
Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

DELOITTE: INNOVATION AND GROWTH TOP OF MIND FOR CIOS, YET NOT MIRRORED IN INVESTMENT STRATEGY

  • Deloitte: Only 15 percent of CIOs surveyed are investing significantly in emerging technologies;
  • Deloitte: 16 percent of IT budgets allocated for business innovation and growth will not be enough

Global CIOs cite innovation and growth as top business priorities, yet 84 percent of IT budgets are spent on running day-to-day operations and incremental change, according to Deloitte’s “2015 Global CIO Survey: Creating legacy”. At a time when new business ecosystems are emerging and the C-suite is becoming more interconnected, CIOs are striving to strike a balance between innovation and operational effectiveness while improving their C-suite relationships and leadership skills.

“As global business ecosystems evolve, CIOs are expected to embrace and anticipate the pace of change and its impact on enterprise-wide technology needs,” said Rajeev Lalwani, Consulting Partner, and Technology Advisory Services Leader at Deloitte Middle East. “The C-suite is now, more than ever, looking at the CIO as a leader who is prepared to drive global business priorities through both scalable technology solutions and smart investments.”

Innovation and growth top of mind, yet not mirrored in investment strategy

While assisting in business innovation is a top technology priority for CIOs across industries, according to the survey, only 16 percent of IT budgets focus investment on innovation and growth. In addition, only 15 percent of global tech leaders are investing in emerging technologies that would contribute to innovation and growth.

“CIOs have a huge opportunity to drive innovation and growth in today’s increasingly global and connected business environment,” said Lalwani. “The challenge lies in the CIO becoming a respected business leader, with a role in advancing both the growth and innovation agenda as well as supporting operational excellence.”

Prioritization and access to proper funding is typically dependent upon the relationship with the rest of the C-suite and poses a significant challenge for allocating investments. Nearly 70 percent of CIOs surveyed claimed excellent or very good relationships with the CFO and 51 percent said the same for the CEO. Only 42 percent self-identified as being co-leaders or initiators of business strategy. To that end, 3 in 4 CIOs said that analytics and digital technologies will have a significant impact on their business; at the same time, many CIOs mentioned the struggle to get ongoing funding for legacy and core investments which will be serve as the foundation for growth and innovation.

Aligning with global business needs, CIOs identify five business priorities

The Deloitte survey shows that across organizations large and small, CIOs share five business priorities which are directly linked to the heart of their businesses: performance (48 percent), innovation (45 percent), customers (45 percent), cost (45 percent) and growth (44 percent).

  • CIOs in technology, telecom and financial services identified innovation as the top business mandate with 58 percent and 50 percent identifying these as business priorities, respectively.
  • Performance is top of mind for consumer business, manufacturing and health care CIOs with more than half of CIOs picking these as their business priorities.
  • Cost dominates the government and energy sector CIO agendas, with a majority of respondents in government (65 percent) and energy and resources (59 percent) picking “cost” as a top business priority.

Looking beyond their specific industries, CIOs are becoming more focused on the broader ecosystems in which businesses operate. To that end, the survey found that more than half of CIOs chose one priority different from the top three for their industry.

Vision for CIO leadership role a work in progress