Jan 01, 2024 | CIO | Digital Transformation | CIO Insights | Future of Work by Priyanka Nagpal and Kapil Nagpal
Introduction
We are at the cusp of an acceleration in digital transformation, where various technologies converge to shape the future. Today, digital transformation is no longer an option but a necessity for businesses to stay ahead of the curve. All businesses are quickly becoming digital enterprises. As we look ahead to the year 2024, it is crucial to anticipate the changes that will take place in a digital enterprise that is utilizing cloud, AI, IoT, Blockchain, metaverse, Web3, and other extended ecosystems.
What will the digital enterprise look like? What transformation topics will be the top priority for CIOs? Will new business models emerge, and if so, what will they be? How will the CIO and C-suite dynamics look like in a digital enterprise? What challenges will the leaders face in developing the workforce and evolving ways of working? What will the organizational structure look like, and how will it evolve from its current state to the future state?
To fully comprehend how digital transformation will affect businesses in 2024, it is essential to explore these questions in greater detail. The year 2024 promises to be a defining moment for the digital enterprise, as organizations embrace transformative technologies and face new challenges. This article focuses on the evolving role of the CIO, the imperative of speed as a strategy, the democratization of technology, and the talent challenges that lie ahead in 2024. By prioritizing transformational areas, companies can confidently navigate the complexities of the digital landscape and seize new opportunities.
1. The role of the CIO in business decision-making will grow
In a rapidly changing, turbulent world, CIOs are no longer focused solely on their companies’ IT infrastructure and operations. Now, more than ever, CIOs are engaged in every aspect of the enterprise. Digital modernization does not merely impact technology and architecture, but also business processes and operating models.
Deepa Soni, Exec VP & CIO, The Hartford: "We're at a point where if we are doing our jobs well, we're being asked by the business to partner and bring our thought leadership to the table and be a partner in shaping the future of the business."
CIOs are on the front lines facing global market forces that influence strategy, implementation, and operations.
As technology continues to shape businesses, the C-suite, including the CEO, needs to become more technologically savvy to lead their organizations effectively. CIOs must work closely with the CEO and other executives to ensure they know the latest technology trends and how they can impact their organization. By doing so, they can effectively lead their organizations through the digital era and stay ahead of the competition.
"I think this is the time of the full stack leadership. From change management to technology to regulation... grit and speed will be essential traits for a successful CIO, enabling them to overcome challenges and work efficiently to keep their organization competitive", Ashish Grover, CIO at Falabella.
As organizations gear up for a digital transformation, the role of the Chief Information Officer (CIO) has become increasingly pivotal. With the right skill set, experience, and vision, the CIO is perfectly poised to take charge as the next CEO, driving the organization's digital transformation.
2. Speed will become a critical differentiating strategy
In the digital landscape of 2024, speed will be a critical factor in determining an organization's success. While great products will always have their place, companies that can innovate, adopt, and adapt quickly will have a significant advantage. The CIO leaders from various industries and company sizes emphasized that speed will become a key strategy for businesses to stay ahead of the competition and capture market opportunities.
"About 20% is the percentage of Fortune 500 companies seven years ago, the percentage will be far greater in the next seven years.", Alex Singla, Senior Partner at McKinsey.
This indicates the growing recognition among organizations of the need to adapt and leverage technology to remain relevant in the market. Companies must adapt swiftly to remain competitive, this involves embracing new tools, processes, and strategies that enable companies to streamline operations, improve productivity, enhance customer experience, and ultimately drive growth and profitability.
As companies leverage technology at speed and scale to capture market opportunities and stay ahead of the competition, the number of Fortune 500 companies will grow in the next seven years.
3. Technology will be democratized
The democratization of technology will emerge as a prominent trend. With the advent of low-code, no-code platforms, and generative AI, technology solutions will be accessible to frontline employees, business leaders, consumers, and customers. Organizations that empower their workforce to leverage technology will gain a competitive edge, as their employees become more technologically capable and equipped to make quick decisions.
4. There will be a shift in talent strategy for the digital enterprise of 2024
Talent challenges will take center stage as the digital enterprise evolves. The traditional specialist roles within IT organizations will transform into more versatile full-stack roles. The demand for individuals who understand the intersection of business and technology will be critical. Moreover, cross-functional teams, where IT and business professionals collaborate seamlessly, will become the norm. To thrive in this environment, organizations must foster new ways of working and encourage a culture of collaboration.
In 2024, the entire C-Suite must embrace digital fluency. As we move forward, the lines between specialist roles will blur, giving rise to a more generalist-like approach to continuous growth and learning. Managing talent in one of the most dynamic times will be key, highlighting the importance of training and supporting the workforce to thrive.
"I think the sense of purpose of being in an organization is the most important motivational tool I've seen in 30 years of managing. Once you lose the sense of purpose, whether it's your company or your organization, you start losing talent.", Amar Maletira, CEO of Rackspace Technology.
The skills required in the workforce will be different from what we have seen in the past. In addition to technical expertise, professionals will need to possess capabilities such as creativity, critical thinking, problem-solving, resiliency, and flexibility. In times of elevated stress in the rapidly evolving landscape, these capabilities will be essential for sustained innovation and adaptation.
Creativity will be essential for sustaining innovation and differentiation in an increasingly competitive world, especially as technology continues to democratize. It will require individuals to think outside the box, generate new ideas, and find novel solutions to complex problems.
Critical thinking will be key in an era where data is rapidly growing, and businesses need to make informed decisions. It will require individuals to evaluate information, analyze it, and turn it into actionable insights to make informed business decisions.
Resilience and flexibility will be essential for professionals to cope with the ever-changing technology landscape and work environments. It will require individuals to remain optimistic and persistent, be open to learning new skills, and adapt to new changes.
Problem-solving skills will become even more crucial in the future as challenges continue to arise in an increasingly complex world. Professionals will need to identify potential issues, develop strategies, and overcome challenges while navigating uncharted territories.
5. More technology will be rented than owned
Technology is evolving at breakneck speed, businesses face a constant challenge to keep up with the latest technological advancements. There is a growing trend among businesses to rent new technologies rather than owning them. Renting offers businesses numerous benefits, including cost savings, flexibility, and sustainability. By renting, businesses can keep up with the latest technological developments without breaking the bank. Additionally, renting also provides businesses with greater flexibility. They can scale up or down their technology needs depending on their business requirements. For instance, when demand spikes, businesses can easily scale up their technology requirements, and when demand drops, they can scale down. This flexibility allows businesses to manage their technology expenses more efficiently. Moreover, renting can also help businesses to reduce their carbon footprint by avoiding the disposal of outdated technology.
In 2030, new technologies will be likely rented rather than owned, indicating a shift in how businesses approach technological infrastructure.
Conclusion
The role of the CIO will become increasingly crucial, with technology permeating every aspect of business. Speed will be a key differentiator, and organizations must prioritize agility and innovation. The democratization of technology will empower employees and drive digital transformation across all levels. As the digital enterprise of 2024 takes shape, organizations must navigate the talent challenges by fostering a workforce equipped with creative thinking, critical problem-solving skills, analytical abilities, and resilience. By embracing these insights, businesses can position themselves for success in the future's dynamic and rapidly evolving digital landscape.
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