Paperless Technology Solution
Gurd shola Addis Ababa,
Ph: +251936515136
Work Inquiries
Ph: +251936515136

How CIOs can approach digital transformation investments to increase value – TechRepublic

Register for your free TechRepublic membership or if you are already a member, sign in using your preferred method below.
We recently updated our Terms and Conditions for TechRepublic Premium. By clicking continue, you agree to these updated terms.
Invalid email/username and password combination supplied.
An email has been sent to you with instructions on how to reset your password.
By registering, you agree to the Terms of Use and acknowledge the data practices outlined in the Privacy Policy.
You will also receive a complimentary subscription to TechRepublic’s News and Special Offers newsletter and the Top Story of the Day newsletter. You may unsubscribe from these newsletters at any time.
All fields are required. Username must be unique. Password must be a minimum of 6 characters and have any 3 of the 4 items: a number (0 through 9), a special character (such as !, $, #, %), an uppercase character (A through Z) or a lowercase (a through z) character (no spaces).
How CIOs can approach digital transformation investments to increase value
Your email has been sent
Daniel Williams guides CIOs in tackling digital transformation like an investor.
With nearly every industry experiencing increased competition, businesses now face a critical juncture. Leaders must proactively invest in digital transformation tools or risk getting digitally disrupted in major ways.
As such, CIOs and their executive peers must view digital transformation as the core of the business rather than as a supporting enabler of the company. CIOs and IT leaders will need to play a more vital role in critical growth areas as a result.
SEE: Research: Digital transformation initiatives focus on collaboration (TechRepublic Premium)
Many organizations and CIOs look at digital transformation as a one-time cost and don’t actually maximize the value derived from digital transformation. Historically, CIOs managed the IT infrastructure spending of the organization, mainly as a cost center. However, as technology capabilities evolved from a “nice-to-have” to an absolute must-have, many IT organizations still rely on antiquated budget processes without connecting to an expected ROI.
The reason for this gap is twofold. One, CIOs and IT leaders must shift the culture from IT implementation and support to becoming more of a technology investor, with new skill sets such as investment modeling and analysis. And two, CIOs must expand their vision across the entire organization to invest and drive transformation projects and enable growth across functions, divisions and business units.
Digital transformation is about much more than just new technology and applications — it’s about investing in a complete transformation of the business, processes, skill sets and ways of working to increase the competitiveness and value of the organization.
There are two key areas that CIOs should focus on. To increase the growth and ROI of technology investments, CIOs must be proactive in developing a digital transformation strategy that includes a sound “investment thesis.” Where do they believe the opportunities exist for transformation to support the business strategy of growth: Expansion or new customers? Are there shifts in the market or industry that open the door to calculated bets on digital initiatives?
Beyond that, IT leaders must be able to connect, articulate and report how IT metrics align with key business metrics. For example, how does application availability impact monthly active users? Are these trailing metrics or forward-looking?
CIOs need to transition their mindset to more of a venture capital or private equity executive and approach many technology investments as they would a venture portfolio. PE and VC work in different time frames, driving much quicker decision-making. Therefore, CIOs should adopt the mindset and organizational capabilities needed to rapidly scale the enterprise and create the best offense in a competitive environment: rapid growth.
According to research from ThoughtFocus: “The PE model for the CIO also includes creating value in portfolio companies by increasing customer revenues and driving cost efficiencies with the effective use of technology.”
Industry CIOs must also focus on the outcome of their company’s investments. This is what private equity firms are very astute at — orchestrating financial outcomes — which means CIOs are on the hook for justifying the investments that the company makes and explaining the eventual outcomes in clear terms.
For CIOs who want to take more of a PE or investor approach, there are four strategies to start now. First, shift your focus from the traditional CIO lens of “keeping the lights on” to transforming the entire business through technology. It’s a subtle difference — business leadership versus business acumen — with a potentially massive impact on ROI.
Second, leverage PE strategies such as “platform/add-on” acquisitions when it comes to technology investments. For example, when investing in IT, you might start with your centerpiece or platform first and then invest in complementary solutions that give your organization an outsize competitive advantage.
Third, focus on digital transformation at the organization level, not just tinkering around the edges in areas such as HR and sales systems. This approach is about investing in the best portfolio of digital solutions to transform how the business delivers value to customers and competes in the market.
Finally, develop an “investment thesis” of digital transformation. Where do you believe the opportunity is in your business and industry that others don’t see or have missed? What portfolio of technologies will position the organization to win? What is the mix of skills and capabilities needed in order to execute this vision?
Daniel Williams is a principal with Pariveda, specializing in digital strategy, implementation and analytics.
Discover the secrets to IT leadership success with these tips on project management, budgets, and dealing with day-to-day challenges.
How CIOs can approach digital transformation investments to increase value
Your email has been sent
Your message has been sent
TechRepublic Premium content helps you solve your toughest IT issues and jump-start your career or next project.
The technologies could enable immersive experiences, accelerated AI automation and optimized technologist delivery in the next two to 10 years, according to the firm.
Are you an IT manager or executive trying to make the case for a new ERP vendor? Compare the top ERP software solutions with our list today.
Learn about the new features available with macOS 13 and how to download and install the latest version of Apple’s flagship operating system.
Get great deals on developer and Linux training courses, Microsoft Office licenses and more through these TechRepublic Academy offerings.
This comprehensive guide covers the use of services from multiple cloud vendors, including the benefits businesses gain and the challenges IT teams face when using multicloud.
Recruiting a Scrum Master with the right combination of technical expertise and experience will require a comprehensive screening process. This hiring kit provides a customizable framework your business can use to find, recruit and ultimately hire the right person for the job. This hiring kit from TechRepublic Premium includes a job description, sample interview questions …
Knowing the terminology associated with Web 3.0 is going to be vital to every IT administrator, developer, network engineer, manager and decision maker in business. This quick glossary will introduce and explain concepts and terms vital to understanding Web 3.0 and the technology that drives and supports it.
While the perfect color palette or the most sublime button shading or myriad of other design features play an important role in any product’s success, user interface design is not enough. Customer engagement and retention requires a strategic plan that attempts to measure, quantify and ultimately create a complete satisfying user experience on both an …
IIoT software assists manufacturers and other industrial operations with configuring, managing and monitoring connected devices. A good IoT solution requires capabilities ranging from designing and delivering connected products to collecting and analyzing system data once in the field. Each IIoT use case has its own diverse set of requirements, but there are key capabilities and …


Post a comment

Your email address will not be published. Required fields are marked *

We use cookies to give you the best experience.