[BreachExchange] The CIO's hack to staying ahead

[Destry Winant]

https://www.ciodive.com/news/the-cios-hack-to-staying-ahead/553981/

The widespread adoption of new technologies like automation, machine
learning and cloud has not just disrupted established industries but
has also changed the face of the C-suite.

The role of the chief information officer has become more demanding
than ever before, as companies across industries are trying to stay
ahead of digitally native startups. In this era of digitalization, it
is up to the CIO to ensure their enterprise has the tech chops to stay
ahead — or face certain disruption.

So, how can enterprise CIOs identify whether their company is at risk
of a Blockbuster-sized downfall?

It largely comes down to their technology stack and whether legacy
systems have been upgraded in recent years.

In addition to recreating the company's information backbone without
stifling growth, CIOs must also refocus company culture and harness
the assets that come with being an established organization to get
ahead tech-first startups.

This is not to say that you must dump all of your company's technology
and start from scratch to stay relevant.

In fact, that is most often a losing strategy as well. Fending off
disruption requires shifts in the CIO role, digital transformation
planning and a committed focus on the new currency of business — data.

CIOs, the new IT tacticians

The role of the CIO has evolved as technology has grown ever more
important to business.

Although advancements in tech have brought overwhelmingly positive
results, they have also highlighted an ongoing misalignment between
what the boardroom wants and what IT teams deliver.

This disconnect has increased pressure on CIOs to break this cycle and
prove their value. The challenge of preventing disruption is an
opportunity for the enterprise CIO to redefine their role and
reinstate their leadership.

The discrepancy between the board and the CIO is particularly evident
in the pressures to incorporate emerging technologies such as AI and
automation into the enterprise.

Board members are often wary of massive changes to business practices,
especially when there is no immediate consequence. CIOs must work with
their board of directors rather than against them to successfully roll
out long-lasting changes.

It is also important to remember that despite the urgency to begin
deploying buzzy new technologies, CIOs must first take a breath and
capitalize on the opportunity to mould their "new" role as their
organizations work towards digital transformation.

An inability to use technology in the best way has left many CIOs
stuck in a fast-paced hamster wheel, desperate to deliver but not
knowing how.

As the AI hype soared last year, for example, companies raced to
execute tech-first initiatives that ultimately failed— leaving
companies disillusioned by pilots or even full use cases conducted in
2018. With technology continuing to evolve at an exponential rate,
CIOs must be open to change, but they must be strategic.

CIOs that are able to think analytically about what tech solutions are
out there, and are not swept up in the hype, will better understand
the true needs of their organization and be better equipped to work
with their companies in execution.

Walk, don't run

The term "digital transformation" has become overused and is verging on cliché.

While the process is still highly relevant and critical for businesses
to implement, companies have lost sight of what digital transformation
actually entails.

The excessive — and sometimes, incorrect use — of this term has left
business leadership confused when it comes to selecting and executing
new technology to speed business processes and improve productivity,
and eventually, profitability.

CIOs must prioritize bringing routine processes and business practices
into the 21st century, otherwise they'll be ill-prepared to face the
business challenges of the years and decades ahead appropriately. This
is the year to change.

Organizations need to overcome the overwhelming idea of upgrading
decades-old hardware and strive to become digital-first — even if that
means justifying the costs to a wary board of directors.

After all, end users have non-negotiable expectations when it comes to
speed, flexibility, and their tech's ease of use.

One potential avenue for companies looking to ease into digital
transformation is looking into technologies and solutions that augment
legacy tools, rather than completely replacing them.

This direction avoids a massive and immediate overhaul, while enabling
companies to start their transformation journey and capitalize on
digital advantages like speed and flexibility.

Tackle the core issue

Change starts at an organization's core, so reframing a company's
culture is instrumental to digital transformation success.

Management — across the functional areas — must advocate for new
technology initiatives, as well as enthusiastically educating the
broader organization. Proper training and over-communication of new
tech will encourage the broader organization be more receptive to new
solutions.

The CIO should be the one to spearhead this companywide shift. This
involves strategic conversations with the board of directors, planning
appropriate training programs for existing staff and answering basic
questions like, "why do I have to do this?"

If successfully done, CIOs can inspire a great shift in perspective
that will lend to a smoother transition and productive change.

An old dog's new tricks

Established organizations may feel insecure in executing massive
digital transformation efforts, however, they must remember they have
one thing that start-ups don't — data.

As data becomes increasingly precious, companies must capitalize on
the stockpiles they have and use it to their advantage. Businesses can
use it to automate routine process, run analytics programs and
implement machine learning systems.

If the data is managed well, legacy organizations will be well
equipped to make better decisions, extract strategic insights and
speed up processes.

Enterprises new to digital transformation must not become discouraged
and should look to examples of success.

Many traditional institutions are doing an excellent job keeping up
with the new kids on the block.

This is evident in the success of financial institutions, which have
begun leveraging their customer data to stay competitive with digital
competitors. Features like real-time credit card fraud recognition
require both machine learning and decades of historical customer
records that start-ups simply don't have.

Although digital transformation efforts require a lot of difficult
conversations, advocacy and plain elbow grease from CIOs, a well
thought out plan will result in greater employee satisfaction and a
more durable company overall — eventually even improving customer
experience.

Redefining the CIO's role so they ease companies into digital
transformation from the ground up is key. Change is never easy but if
done properly, can be the difference between a failed legacy company
and a long-standing industry titan.