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CIOs unprepared for the 'digital dragon'

Divina Paredes | Jan. 16, 2014
CIOs overwhelmed by the prospect of building digital leadership while renovating core IT infrastructure and capability for the digital future, reports Gartner.

Amidst these changes, however, budget pressures remain for IT organisations. Aron says the survey showed CIOs expect their IT budgets to remain essentially flat (increasing 0.2 per cent on average) in 2014. "This is especially challenging since there is a need to both renovate the core of IT systems and services, and exploit new technology options."

CIOs report a quarter of IT spending this year will happen outside the IT budget — and that is the spending they know about; the reality may be significantly higher. This is a direct result of the new digital opportunities that are more entwined with customer and colleague experiences, and that may, in some cases, reflect concerns that the IT organisation is not fast enough or otherwise ready for more digital opportunities.

"There is an inherent tension between doing IT right and doing IT fast, doing IT safely and doing IT innovatively, working the plan and adapting," says Waller. "The second era of enterprise IT has been all about planning IT right, doing IT right, being predictable and creating value while maximising control and minimising risk. However, to capture digital opportunities created by the third era, CIOs need to deal with speed, innovation and uncertainty. This requires bimodal capability — operating two modes of enterprise IT — conventional, or 'safe and steady' IT, and a faster, more agile nonlinear mode."


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