2016 CIO Technology Trends Report

An Image Depicting CIO Technology Trends Report

In the 2016 CIO Technology Trends Report from Info Tech, the documented tenure of the average CIO is relatively short. The report includes CIOs from the U.S., South America and Europe and found that the median tenure of the CIOs was only four years and four months. Note however that for CIOs remaining in their position for a period exceeding two years, the report found that median tenure increases substantially.

In the recent McKinsey & Company study, “IT Under Pressure: McKinsey Global Survey Results”, executive leaders were asked to select initiatives they felt would improve the performance of IT. 20% of respondents elected to simply replace IT management with new leadership—and the majority of those respondents were IT leaders themselves. Of the 20%, 13% of IT leaders believed new leadership would improve performance while only 7% of business leaders believed new leadership would improve performance.

In general, the overall business satisfaction with IT continues to decline. When asked, “What is IT’s effectiveness in enabling business objectives?”, satisfaction among executives regarding IT’s ability to meet key business objectives dropped steadily. Business leaders consistently noted that IT is neither efficient nor effective in supporting revenue generating objectives such as product creation and new market entry.

The 2016 CIO Technology Trends Report

Leading the Digital Transformation

The rise of digital technologies is a breeding ground of opportunity for the CIO to influence the success and strategic direction of his or her organization. It is imperative that CIOs proactively manage the digital transformation by partnering with the lines of business.

CIOs Must Play an Active Role in Shaping Business Strategy

CIOs must approach the business from a business perspective. Hence, the value-add is how technology can be applied to the business for positive impact. This approach is diametrically opposed to that of an IT person who put their time in, worked their way up the ranks and now runs IT. In progressive organizations, CIOs have a background that includes IT as well as business – both critical roles for shaping business strategy.

CIOs Shifting From Service Brokers to Value Brokers

“Shadow IT” today is overtaking many IT organizations as Lines of Business (LOBs) are frustrated by IT’s inaction or ineffectiveness. With Shadow IT, business stakeholders bypass IT to work directly with technology vendors. While many CIOs are playing the role of service broker, Shadow IT continues to rise. CIOs must do more than simply connect stakeholders with the best technologies to support their initiatives; they must act as value brokers by providing insights on people, processes and systems.

Making IT a Partner in Mergers & Acquisitions

M&A activity is projected to grow rapidly as global businesses continue to pursue acquisitions to expand their competitive market presence. Early IT involvement in the M&A process is critical to provide a better view of risks, improve the ease of integration, and optimize post-merger synergies.

Disruptive Technology and Innovation Trends for 2016

Building a Culture of Innovation Leadership

2016 is shaping up to be a year of significant investment in innovation. IT is culturally more prepared to innovate and is ready to deliver value. The business needs IT to deliver value through new and innovative projects in order to gain or maintain competitive advantage.

Innovation Through Open-Sourced Collaboration

Continuous innovation is the force driving digital ecosystems forward by delivering new methods with which to collaborate and do business. In 2016, the CIO must realize that the winners are platforms. The CIO must equip the organization for continuous innovation through a collaborative sandbox approach that is agile, adaptive and open.

Leveraging the Connected Environment

Organizations that fail to get a head start on Internet of Things (IoT) technology projects will be left in the dust. In 2016, CIOs must design and begin the development and execution of a plan to embrace IoT. IoT should be considered an “overlay” that will impact practically everything both currently in place or planned for an organization.

Establishing a Process to Adopt Disruptive Technology

Disruptive technologies have proven their capability to impact the business, rendering many businesses obsolete. Since the year 2000, 52% of Fortune 500 companies have been acquired or are now bankrupt/non-existent. In 2016, the CIO must have a forward-looking plan to assess the adoption of disruptive technologies.

Fact-Based IT Management Trends for 2016

Working Smart to Quiet the Business Intelligence Noise

CIOs must focus on the right business challenges to counteract bigger and bigger data. Approximately 50% of CIOs are currently citing complexity and integration as chief concerns with regards to their BI initiatives. In 2016, organizations will need to use fewer BI tools to be more productive and to master data (access, consolidation, structured/unstructured, at rest and in-motion) and provide a complete and holistic view of the business.

Building a Data-Driven IT Strategy

CIOs have frequently had stronger appetites for transformational IT than their CEOs. The IT strategy must be a document that highlights and promotes alignment with the business so that both groups work in partnership with one another for the attainment of a common goal. For the CIO in 2016, it is time to use data, not intuition, to set the IT agenda.

Preparing to Prescribe Automated Solutions

In 2016, data analytics and the IoT will converge to collect and exchange data to accelerate automation. Organizations have transitioned beyond hindsight-focused analytics towards forward-looking solutions using predictive analytics to understand what’s next. Prescribing actions for specific scenarios is the next frontier for business intelligence.

The Rise of the Human-Centered CIO

Effective CIOs will use data to put people at the center of technology decisions in 2016. The best-in-class CIOs will develop a better understanding of how to manage their IT workforce to build an honest, thorough understanding of end-user sentiment towards IT services and software. The focus for CIOs should be to increase the productivity of employees through enablement and provide the desired end-user experience for customers.

Risk Driven Security Trends for 2016

Securing Mobile Devices

Cybercriminals will continue to target mobile devices as the number of mobile technologies expands (devices, operating systems and versions of operating systems). While the concept of “bringing your own mobile device” is not new, many businesses are still struggling to incorporate and secure mobile devices within their organization.  The endpoint security systems for laptops over a VPN does not effectively extend to mobile, and Mobile Device Management (MDM) does not constitute security. This is because MDM is focused on tracking and remediating devices through a “less than sub-optimal” end-user experience.

Securing the Cloud

Businesses want to run in a world where cloud access and mobility are requirements. However, there is a strong level of concern surrounding public and private cloud implementation security. With companies adopting multiple cloud environments, stored data must be protected. Further, governance and risk must be considered across the cloud environment.  Businesses must trust 100% in the devices accessing their networks in order to fully protect their applications and data.

Attacks on the Internet of Things

CIOs and their IT teams already have a hard time securing the many devices being used. Machine learning is a network affects issue: the more sensors gathering data to be crunched, the greater the intelligence and analytic capabilities of the system. This problem will only become exacerbated with the proliferation of IoT devices. CIOs must inform their business stakeholders of IoT vulnerabilities and take action to prepare their organizations for attacks.

Utilizing Security Analytics

Security analytics apply advanced mathematical models to as much data as possible in order to detect anomalous behaviors against a baseline behavior. This allows one to effectively use the large amount of security data already available to proactively identify security threats. Machine learning is making predictive technology finally predictive.

Summary – 2016 CIO Technology Trends Report

It’s unfortunate, but the vast majority of executive management teams do not feel that their CIOs fully understand the business strategy.  Furthermore, the majority opinion is that CIOs do not proactively seek out technology that will innovate the business by not disrupting the way employees prefer to work.  The successful CIO will need to address strategic challenges by reducing complexity for employees, customers and partners.  At the end of the day, IT must positively contribute t business strategy or they will be bypassed or replaced.

Let us know what you have experienced or think on the topic by posting a comment.

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