The role of a CIO is varied and subject to change, but there is always an expectation that the person in this role will be a key driver of innovation and growth at a multinational company. How this person will go about driving innovation and growth will depend a certain amount on their personality and experience and likely, quite a bit more on the tools at their disposal within the multinational to embrace change and move at speed.
New and innovative technology tends to be disruptive and it is often a catalyst for business growth and development -the CIO is expected to be able to capitalize on this technology disruption in the market in order to take the multinational in a direction that gives it a competitive advantage while generating new revenue streams.
In this article, we will examine some of the ways in which a CIO can introduce new ways of doing things that result in a competitive advantage and significant business growth. This is the area in which the role of the CIO will add significant business value and they will likely be judged on their success or failure in this area.
Staying competitive
A CIO’s leadership when it comes to innovation has become crucial to the success of multinationals and there is now an inbuilt expectation that the person filling the role of the CIO will have a strong aptitude for innovation and original thinking. You could not describe these as natural skills therefore, they have to be honed and developed overtime.
You would also have to accept that market conditions play a key role in any CIO success strategies or business models- so there are always factors in play that are beyond the control of the person incorporating this challenging role. The CIO will be required to help run daily operations effectively while also helping to exploit opportunities, so innovation capabilities are needed for the business to both survive on a daily basis and thrive in the future. Developing a strategy that helps to make these two things happen effectively and simultaneously is likely to be at the forefront of any CIO’s thinking.
Strategy Mapping
IT departments are generally tasked with looking after the day to day running of operational functions within a multinational, often under the supervision of the CIO. However, this kind of supervision seems to have taken a back seat to the more pressing matter of mapping out a strategy for innovation and business growth -and there is a strong degree of expectation placed upon a CIO to both create and implement this crucial map.
This map is likely to involve a strategy around taking advantage of market opportunities by using all available digital processes within the organisation. If these digital processes do not exist, then it is likely that the CIO will recommend a digital transformation project so that the multinational can move into a space where it has the tools and new technologies it needs to disrupt and capitalise for business growth.
This kind of digital transformation is often about making the company more agile and adaptable so that it is in a stronger position to take quick and decisive action when the right market conditions present themselves. It often falls to the CIO to map out the business strategy and define what is needed to get the multinational into this position. Part of the job is to create or introduce the required levels of innovation that can result in effective long-term growth- essentially, the CIO will help drive the growth via the innovation. This creates an effective and continuous circular motion of innovation and growth, as more growth will likely free up more revenue for additional innovation, and on it goes.
Strong Impact
While it is important to be considerate and patient, it is equally important to make an immediate and positive impact with a business strategy. Every business is a results business these days, and a CIO is expected to produce strong short-term results that will be a likely indicator of sustained success and business innovation in the long run. Therefore, there is a lot of pressure on the CIO to get the business strategy right first time around. In which case, it has really become more about strong disruption than slow and steady change.
If it is more revolution than evolution, then a CIO will require a very innovative level of technology to deliver on strategy and plans relating to overall growth and market penetration. There will be a strong need for next generation technology such as AI, RPA, and machine learning. Cloud based innovative mobile technology also needs to be deployed in order for the multinational workforce to move with the kind of speed and agility needed for decisive market impact and business disruption. If such a suite of technology is not available, the CIO will likely seek out information around available finances for a significant digital transformation investment.
If technology is needed to produce the level of innovation required for long term success, then it needs to be in place as soon as possible and not be a blocker to progress. This will help ensure that outdated or legacy technology that is no longer fit for purpose, makes way for the innovative tools of the future. The responsibility for organising and structuring such a transformation falls within the remit of the modern-day CIO.
CIO Action
A CIO will assess the technology stack currently in operation and decide if it remains fit for purpose. They will then develop a plan for change and look to implement it as soon as possible - this may involve shifting gears and a lot of disruption for the employees at the multinational. But the CIO is likely to have the full backing of the CEO, who will be keen to supply the CIO with what they need to deliver in challenging circumstances. Some things they may consider doing include:
- Immediate technology investments in back office functions that currently use dated legacy technology that is slowing things down. Evolving and enhancing back office operations is crucial as these functions must be able to keep pace with any new initiatives made at front office level
- Improve workforce productivity -this could be a case of supplying them with more agile and innovative tools that helped them collaborate and communicate better. Mobile, social, and learning tools come into play here as does better remote access to important company data
- Disrupt the market: Use digital disruption and innovation to create better customer products and services in a way that takes full advantages of the resources, talent, and technology infrastructure within the organisation
Understand the full picture
For a CIO to succeed, this person needs both a broad and a detailed understanding of the full picture of the organisation in which they work. They need to have full clarity on the objectives and behaviour of:
- Company employees
- Customers
- Technology partners and other business partners
- C-suite executives and business leaders
It is easy to default to thinking solely about the customer experience and how innovations offered to them can result in strong new revenue streams and company growth. This is important yes, but the bigger picture involves recognising the impact internally as well as externally. Questions around how employees are coping with the new level of change as well as how the infrastructure is performing under increased pressure and burden are equally important to the long-term health and prosperity of an organisation.
It cannot just be about keeping all eyes on the revenue, as without an effective mix of people, strategy, and technology, there won't be any revenue. Something that is immediately good for customers and obviously beneficial to revenue streams may simply not be feasible in the short term due to the talent and IT infrastructure within the organisation. Innovation must be suitable and align to internal company culture and the CIO will need to ensure that there is no detrimental impact associated with this innovation, or anything that creates disconnect or discord within the organisation.
Getting the balance right and ensuring that the disruption is only short term will be a strong focus for any CIO. This balance between effective disruption and delivering on a well-planned strategy needs to be supported by a strong IT architecture and agile technology. Buy in from C- level executives and all employees is also needed. A CIO with insight, experience and courage can achieve this balance and deliver innovation & growth capable of transforming an organisation.