The Next Wave: CIOs in a Post-Digital Transformation Era

In our digital-first world, IT evolves at an unprecedented pace. To stay ahead, the vast majority of businesses have focused on digital transformation to ensure they remain competitive over the past decades.

However, today, digital transformation no longer holds the weight it once did. A recent groundswell of change, from the way we work to the technologies we can access, means this approach no longer has the same impact and, instead, has become business as usual.  

Now the focus for IT leaders needs to be on the emerging technologies that have the power to implement real change in this dynamic environment. The integration of new technologies, when strategically aligned with business objectives, will be crucial in achieving the next level of competitive advantage.

When Digital Transformation Becomes Routine

Digital transformation initially represented a profound and revolutionary shift for businesses. It was a period marked by significant opportunity, improving businesses by streamlining operations, enhancing customer experiences, and much more. 

However, the changing nature of work, supercharged by the pandemic, forced everyone and everything online almost overnight. This transformed once long-term digital strategies, designed to gain a competitive edge, into a normal and necessary function. Digitalisation has matured and many initiatives that once seemed groundbreaking, are now ubiquitous tools in the corporate toolkit.

Evaluating Emerging Technologies 

In this post-digital transformation era, CIOs need to focus on what will drive real business change. It is here that the role of technology as a driver of business outcomes becomes most apparent. Whilst digital transformation is now a standard business function, new technologies are promising to take businesses to new heights - but adoption needs to make economic and strategic sense. 

The Logicalis 2024 CIO report uncovered that while CIOs recognise the need to rapidly assess and adopt new technologies, many are facing challenges when it comes to investment. For example, whilst 89% of CIOs are actively seeking opportunities to incorporate Artificial Intelligence (AI) into their business, the majority (80%) of respondents indicated they are not yet realising a return on investment in AI. 

AI is just one example. Other emerging technologies, such as quantum computing, blockchain, and advanced data analytics, are also capturing the interest of businesses. Despite their promising capabilities, these technologies present similar challenges. For instance, quantum computing promises to solve complex problems at unprecedented speeds, but it requires specialised infrastructure and expertise which many businesses lack.

The misalignment between investment and impact is particularly detrimental as globally, businesses are rocked by economic uncertainty, so failed investments will hit companies hard and that is where the role of the CIO becomes more crucial.

Aligning Technology with Business Outcomes 

What is encouraging is that the vast majority of CIOs now have a seat at the table when it comes to business goal setting. Instead of a backroom function that businesses worked around, today technology is recognised as a core business imperative.  

However, with digital transformation not always as revolutionary as anticipated and some new technologies failing to consistently yield productive outcomes, the question for CIOs will remain focused on how they can ensure meaningful progress and tangible results: 

1. Align technology with business strategy: CIOs must take the time to align technology investments with overarching business goals. Only then can they ensure that the technology adopted is not just a novelty but a strategic asset that contributes to the organisation's near and long-term vision and efficiency.

2. Reduce complexity: In order to truly accelerate, tech leaders need to have visibility across the entire estate and understand how technology is performing. Many CIOs struggle to measure performance but by leaning into the data, they can swiftly make decisions to refocus investments, deprioritise, outsource or simply drop activities that do not align with desired business outcomes.

3. Keep an eye on innovation: Technology continues to advance at pace and the potential is huge. By watching early adopters, tracking progress, assessing regulatory requirements or challenges, and reviewing security threats, CIOs can make strategic moves whilst limiting the potential for complications. Staying at the forefront of technological innovation while being vigilant about its application is essential for ensuring that new tech investments translate into real business gains.

What was once considered transformative has become standard practice for most businesses. At a time when the opportunity for innovation is exponential, the key for organisations is identifying and advancing technologies that will give them the most competitive edge. This focus on technology as a key enabler of business outcomes will be critical in navigating today's dynamic environment.

That’s where CIOs will become even more integral to their organisation’s future success.  Bridging the gap between corporate strategy and tech, they are uniquely positioned to advise the board and direct businesses into making the investments that will have maximum benefit. The ability to pivot and embrace technology, focusing on results, will define businesses with visionary leadership in our digital-first world.