World is moving towards greater availability and openness of technologies (Digital Democratization)
Sergey Detyuk, CEO of #MetinvestDigital, shared several trends that were discussed by CIO of the world’s largest companies at the Global Microsoft CIO Summit, held at the end of September in Seattle.
The world is moving towards greater availability and openness of technologies (Digital Democratization). Companies implement technological solutions almost in all business processes, and employees use one or several IT solutions every day. It drastically changes approaches to IT management and business conduction, and the role of CIO (Chief Information Officer).
Companies are becoming technological
Nowadays, all companies are more or less technological. It does not depend on the industry in which they operate, the services they provide or the products they manufacture. Innovations and IT solutions help increase efficiency of various business processes, whether it is production, logistics or sales. Companies that integrate new technologies into their business faster than others receive competitive advantages in the market. In this connection, the IT Function role is changing both within the organization and in interaction with customers.
Demand for technological advancement of employees increases
The gap between technological knowledge and skills that employees possess and those needed by the company is one of the problems of the global business community. The development of artificial intelligence, robotization of business processes, machine learning and other innovations are fundamentally changing the nature and content of daily tasks. Digital transformation creates higher demand for technological advancement, and the labour market fails to fully satisfy it. New requirements for staff knowledge and skills appear faster than employees are able to master them. To solve this problem, IT departments are investing more and more in continuous training and requalification of their staff.
New technologies ensure coherence of information and business processes (direct relationship Board – Front Office)
The time when it took days, weeks or months to prepare information for top management or supervisory boards is gradually becoming a thing of the past. The implemented information systems make it possible to combine Front Office — ‘people in the fields’ with management: to ensure coherence and speed of transfer of relevant information and data within the company, regardless of complexity of its organizational structure. It improves speed, transparency and efficiency of management decision making.
Customers manage your business
Nobody will be surprised at technologies. To improve any business process, the market offers several technological solutions to choose from. In modern business, the winner is not the one who comes up with great ideas or introduces innovations, but the one who with their help creates additional benefits for the consumer and a new user experience. In a technological business environment, it is the Client who manages your business, even if you still do not understand this.
CIO role is changing
Digitalization and automation are transforming entire industries. It is practically impossible to find a company the business strategy of which does not contain a technological or innovative section. New requirements are being set for the CIO role. Previously, technology skills and innovation were key for CIOs, whereas now it is business leadership, communications, and ability to build partnership both within the organization and in customer relations that come to the forefront. The CIOs are more frequently approached not so much for technologies but for business solutions. The IT Function is being transformed from the cost center into the center of growth in the company’s value and profitability. The “classic” role of the CIO can be less often observed at the Board of Directors level.