Gartner Report: Most CIOs are not ready for digitization

The era of digital economy has arrived. For consumers, this means they can interact with the virtual world and the real world in a more colorful way anytime and anywhere. For enterprises, this means that their operations will change dramatically, and they also have the opportunity to gain a deeper understanding of customers and turn these insights into value. For CIOs, this means they need to address increasing challenges in terms of channels, operations, information management and innovation, and the digital revolution is reshaping these challenges.

However, according to the latest global CIO survey conducted by Gartner's Chief Information Officer Implementation Plan (exp), the global technology research and consulting company, the third era of enterprise IT-digitalization has set sail, however, most CIOs are not ready to enter this new era. The survey shows that many CIOs are at a loss in the face of building digital leaders and looking at the prospect of revolutionizing the core and capabilities of IT infrastructure in the future. According to the survey, 51% of CIOs are worried that the rapid arrival of the digital flood will be faster than they can cope with, and 42% of CIOs feel that they do not have the talent to face this future.

Mr. Dave Aron, Vice President and Senior Researcher at Gartner, said: "In the increasingly digital world, if CIOs want to help their businesses maintain close ties with public institutions, 2014 will be a year of significant change."

The global CIO survey was conducted in fourth quarter of 2013, covering 2,339 CIOs in 77 countries. These CIOs represent an IT budget of over $300 billion. Gartner EXP's survey report fully reflects the company's business focus and CIO strategy.

The first age of enterprise it focuses on how it helps accomplish new and seemingly magical things-such as automated operations that increase speed and scale up in a large scale, and provide business leaders with unprecedented management information. The past decade represents the second age of enterprise it, and the industrialization age of enterprise it is more reliable, predictable, open, and transparent. However, in the second era, it is necessary and strong to compress budget and be unwilling to take risks, so that innovation lacks the space to display.

It is now in the third era of enterprise it, that is, the era of technological and social trends. For example, the convergence of power and the Internet of Things are changing everything, it not only enables enterprises to use technology to achieve faster, cheaper, and more scalable, but also fundamentally changes the enterprise and the foundation of competition by virtue of information and technology, in some cases, new industries have been created.

In Aron's view, 2014 had a dual goal, not only to respond to the demand for efficiency and growth, but also to develop a fundamentally different digital model, ignoring any point is not correct.

"Treating colleagues like customers in the enterprise's second it age severely hinders digital development ." Mr. Graham Waller, vice president of Gartner and executive partner of Gartner EXP, said that in 2014, CIOs must face challenges from the second to the third age. They must build digital leadership and dual-mode capabilities while updating the core and capabilities of IT infrastructure for the future of digital.

"CIOs are facing challenges over the years, as well as huge digital opportunities and threats. Digitalization raises questions in almost all aspects of strategy, leadership, organizational structure, talent, and finance. All industries in all regions are undergoing digital transformation. The CIO's dream is achieved, and it is also faced with the leadership challenges brought about by career changes ." Said Aron.

Most enterprises have established it leadership, strategy, and governance, but they are in the vacuum of digital leadership. To develop new digital opportunities and ensure that the core of IT services is ready, clear digital leadership, strategy and governance, and all managers must possess digital skills. In fact, the CIO survey in 2014 showed that the CEO's understanding of digitalization is one of the best indicators of IT and enterprise performance.

According to the CIO survey, 2014 of IT spending in 1/4 will come from outside the IT budget, which is what they know. The reality may be higher. This is a direct result of a new digital opportunity intertwined with customer and employee experience. In some cases, the response speed may not be fast enough for the IT department, or you may not be prepared for more digital opportunities.

In China, IT budget growth is strong, with an average growth of 13% compared with last year. At least 40% of IT spending comes from outside the IT budget, higher than the global average. It expenditures are prioritized by cloud, mobile, infrastructure and data center, Bi/analysis, and ERP. 61% of CIOs in China have made significant investments on the cloud.

Mr Waller said: "There is an internal tension between doing the right it and doing fast it, doing secure it and doing innovative IT, and planning and adapting. The second era of enterprise it is about correctly planning it and making it right. It is predictable and can create value while maximizing control and minimizing risks. However, to capture the digital opportunities created in the third age, CIOs need to respond to speed, it innovation, and uncertainty. This requires dual-mode capabilities, namely operating two modes of enterprise IT-traditional or "secure and stable" it, and a faster, more flexible, and non-linear model ."

To achieve a dual-mode future, CIOs are planning for significant changes in 2014 and later:
1. 1/4 of companies have made significant investments on the public cloud, and most companies expect that half of their business will run on the public cloud by 2020.
2.70% of CIOs plan to change their technology and procurement relationships in the next two to three years, and many CIOs are seeking to form partnerships with small companies and startups.
3.45% of companies have implemented agile approaches for some of their investment portfolios, although most companies need to further create independent and multi-functional teams, adopt lightweight governance, new digital skills, and available procurement models.

"If the transformation succeeds, CIOs and their companies will be able to 'tame the digital dragon, 'bringing a lot of new value and new value to the Enterprise, CIOs and their IT departments have an updated role and greater credibility. However, if this dragon is not tame, the enterprise may fail and its IT department may almost disappear ." Aron finally said.

Gartner Report: Most CIOs are not ready for digitization