It is no longer enough for the chief information officer (CIO) to be competent in technology. They have new responsibilities that go much beyond technology. And with new responsibilities come new challenges.

Today, a successful CIO is a business strategist with deep technical expertise.

The Increasing Business Responsibilities of the CIO

Around two decades back, the CIO was mainly responsible for enterprise IT infrastructure. Since then, relentless digitisation has changed the game for CIOs.

Today, the CIO is still responsible for the enterprise IT infrastructure. But they also have a key role in leadership and strategy.

The advent of cloud computing triggered the change in the CIO role. Cloud providers offered ready-to-use software and computing infrastructure. The CIO spent less time setting up technology stacks and computing infrastructure. Instead, they had to engage with multiple vendors and manage the shift to cloud systems. The CIO became an advisor and a consultant on cloud adoption.

Side-by-side, the spread of e-commerce forced CIOs into a more central and strategic role within the enterprise. The CIO soon became the chief driver of the enterprise’s digital business strategy.

Driving Business Value

As enterprises become tech-driven, they also operate in a very competitive environment.

Tech for tech stake is no longer sustainable. In today’s competitive business environment, every tech decision has to drive business value.  The CIO has the responsibility to frame solutions in the context of how they deliver value for the business. Return-on-investment metrics have become supreme.

In a 2022 survey, 71% of respondents expected the CIOs to drive business innovation and develop business strategy.

Effective CIOs bridge the gap between business requirements and technology. They:

• Imbibe the enterprise vision, goals, and customer needs. They also understand the competitive landscape of the business. Such a wide and in-depth understanding enables aligning technology strategy with business objectives.
• Identify how technology can solve business problems or unlock new opportunities.
• Drive innovation to establish competitive differentiation
• Focus on the “why” of technology over and above the nuts and bolts of IT implementations.
• Build a compelling narrative that ties the technology roadmap to business strategy. The narratives have to convince the C-suite of how the project or initiative will address specific pain points or boost revenue.

Consider cost-cutting. In the past, the CIO would launch a blanket cost-cutting initiative. They would scan tech systems, identify waste, and streamline processes. Today, CIOs launch such projects to solve business challenges. They position the optimisation project to stem the loss of market share among a customer segment or reduce cost per transaction.

Leading from the Front

The CIO has assumed added leadership roles over the years. CIO.com’s 2023 State of the CIO survey reveals that almost three out of four CIOs play a strategic leadership role in their enterprise.

Enterprises now expect CIOs to contribute to business strategy and innovation. The onus is on the CIO to:

• Motivate the workforce by engaging and communicating with them.
• Work with HR in recruitment to source competent talent.
• Embrace a growth mindset and radiate positivity.
• Empower the workforce by facilitating their work and giving them ownership of it.
• In the analogy of a ship, the CIO has to navigate the waters and also ensure the engine room works without hiccups.

Managing Relationships and Culture

One of the added responsibilities of the CIO of late is managing relationships and culture.

Digitisation requires a culture of openness and transparency. It is not enough to set up collaborative systems and integrated dashboards. The CIO also has to build a digital collaboration culture where the workforce shares information. The workforce has to imbibe shared values, attitudes, and open collaboration. Without it, there will be no pen collaboration and even the best technology will go unused.

The CIO also has to promote a culture where innovation thrives. They have to encourage risk-taking and experimentation. Side-by-side, they have to understand the risks of innovation and new technology adoption. Such an understanding allows them to place guardrails and safety nets to mitigate any negative fallout.

The Changing Tech Responsibilities

The CIO role has changed even when it comes to technology.

The basic role of the CIO is still to ensure reliable, secure, and cost-efficient computing infrastructure.

The cloud raised the importance of application development. CIOs have to deliver agile systems linked to business goals.

Consider a business that has field service operations. The CIO has to develop cutting-edge apps for field technicians to engage with the office.

CIOs have to keep abreast of the latest tech developments. They have to identify the technologies that have matured and work best for the enterprise. But they cannot be blind tech adopters either. They need to do a cost-benefit analysis of the new technology and make trade-offs. They balance the disruption of new technology adoption with the gains of first-mover advantage.

Engaging in Creative Destruction

As the adage goes, “You have to destroy to create.” Effective CIOs indulge in creative destruction.

Many enterprises run legacy technology that is not scalable and outdated. Legacy increments or updates will no longer work.

Many companies do not understand the risks and limitations of their legacy systems. The CIO has to convince the C-suite why it is necessary to end technologies that work fine at present and invest in a complete tech overhaul.

Legacy systems require specialised expertise that may no longer be available. Also, these systems become incompatible with newer technologies. issues surface when transferring data. Also, these systems no longer have support. The vulnerabilities create huge security risks.

CIOs identify when such issues reach a tipping point when it makes sense to replace the incumbent technology. Calculating the ROI is tricky since many of the benefits are indirect.

Managing Change

Digital transformation brings big disruption. Migrating to new systems often turns complex and disrupts business operations.

In such a scenario, resistance to change is commonplace.

Countering such resistance requires creating a movement that supports and looks forward to the change. The task of creating such a coalition of the willing falls on the CIO.

The CIO has to:

• Drive home the message that the cosy status quo would soon become unsustainable due to rapid changes in the environment.
• Educate and convince the workforce on how change will benefit them.
• Design and implement training programs to make the workforce familiar with new systems and processes.

The changing role of the CIO reflects a change in the wider tech and business landscape. Technology is no longer the exclusive province of IT experts or an add-on for business functions. Technology is now all-pervasive and an integral part of business. The CIO has likewise assumed a deeper business role.