INDUSTRY INTELLIGENCE POWERED BY THE DCA
The Second Age saw the role of enterprise IT transform from back-office support to essential business enabler .
Fundamentally the Second Age saw the CIO transform the role of IT within the business , without transforming how it was delivered . It ’ s an incredible sleight of hand that is worthy of applause . CIOs transformed capabilities , aligned IT with business units , modernised infrastructure , optimised traditional cost models and found or freed budget for digital transformations . But they ’ re still fundamentally using the same traditional operating model , which has thrown up challenges of its own .
CIOs caught in the Second Age contend with resource struggles , conflicting model of siloed teams . Second Age IT is insufficient for the needs of the modern ‘ digital first ’ business . The Third Age puts IT at the centre of both business strategy and operational delivery . As a result , changes are coming :
C-suite dynamics : As technology dominates strategic business priorities , company executives will require improved technological understanding . In 2011 , only one-in-five CIOs ranked themselves as a critical enabler of business success . Now , CIOs rank in the top three of C-suite executives most critical to organisational success .
IT SLAs will become business KPIs : IT will define success based on the function ’ s ability to support the business ’ key objectives . Metrics hierarchies that reflect the technical and business outcomes will help deliver dividends and identify the chain of accountability . Note , this doesn ’ t mean that IT abdicates responsibility for uptime , scalability , resilience etc .
IT governance will change : IT will decide where it can relax ‘ ownership ’ of applications . Governance will transform to balance the business ’ desire to move quickly , while mitigating operational or security threats . This will require overhaul of models , processes and supporting systems .
Unilever has already begun its Third Age transformation . “ Everything we ’ re trying
CIO role evolution : “ The role of the CIO is becoming less of a tech leader and more of a business leader . It ’ s how you apply the technology that makes a difference ,” said John Gibbs , CIO at International Airlines Group ( parent to British Airways ). CIOs will become the ‘ Chief Operating Officer of Technology ’ and assume leadership roles in strategy development and execution .
Mohan Gandhi , Senior Sustainability Consultant , STG Advisors
priorities and difficult trade-offs . This approach creates IT integrity and security risks . Piper Sandler ’ s 2022 CIO survey found security remains the top concern for 78 % of CIOs and Gartner ’ s 2022 study found 74 % of technology purchases are funded at least partially by business units outside of IT , creating conflict and complexity for CIOs .
The Third Age – New priorities , new delivery model
It ’ s becoming increasingly difficult for IT teams to meet new demand for faster innovation under the traditional operating
Seamless alignment with business priorities : Value stems from the ability to bring assets , resources , insights and opportunities together . Aligned IT and business goals and aligned financial and operational incentives will help companies deliver this value .
Blurring of IT and business : The boundaries between IT and business will blur significantly . Business analysts will configure business rules and functionality that would have previously required IT teams to develop , test and deploy code .
Breaking down of silos : As a result of aligned priorities and blurred boundaries , the Third Age will see the creation of multifunctional teams across IT and business – what Gartner calls ‘ fusion teams ’. Technology will become an integrated part of business processes .
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