Digital: Why The C-Suite Now Own It (& Why We Want It To Make Us Money, Not Save It!)

Digital: Why The C-Suite Now Own It (& Why We Want It To Make Us Money, Not Save It!)
SHARE
THIS


What best describes you?

It took them long enough. The latest global CIO survey from executive recruiter Harvey Nash reveals that ownership of digital is shifting away from IT and/or marketing and into the hands of senior executives.

Globally, 37 per cent of the companies surveyed indicated C-suite executives and board of directors are responsible for the digital strategy. 11 per cent of respondents said no one formally owns the digital strategy.

Who owns digital?

“As more organisations gain experience with digital and understand its strategic impact, ownership is migrating from a functional domain and tactical perspective to the executive level and a strategic perspective,” the report says.

“In Australia, you will certainly see this as a c-suite/executive level priority and responsibility. The great thing about Australia is that in most instances, we tend to have healthy collaborative relationships between business units at c-level,” says Bridget Gray, managing director Harvey Nash Asia Pacific.

According to the survey, 35 per cent have developed an enterprise-wide digital strategy, up from 27 per cent last year.

Who owns digital?

Growth in chief digital officer numbers slow

Some 20 per cent of Australian businesses have a Chief Digital Officer role, which is on par with the global figure, 19 per cent of organisations globally now employ a CDO.

This figure is up from 17 per cent in 2015, but is growing more slowly than in previous years, where it jumped from from 7 per cent in 2014 to 17 per cent last year.

Gray says Harvey Nash is seeing a demand for CDO candidates, “however, we are witnessing higher volumes of digitally competent and product-oriented CIO mandates, sometimes this is to avoid creating another function, that could potentially create silos and slow business decisions and progress down.”

According to the report the existence of the CDO role is closely linked to IT budget size. Companies with IT budgets above $100 million are twice as likely to have a CDO as those with IT budgets below $100 million.

“In highest spending organisations CDOs are slightly more likely to report to the CIO (32 per cent) than they are to the CEO (29 per cent). For the other firms the picture is quite different with almost half (49 per cent) of CDOs reporting directly to the CEO,” the report said.

Dealing with digital

Barriers to innovation

Globally, 59 per cent of IT leaders cite a lack of resources or funding as a roadblock to innovation.

“Speaking with CIOs, it is often high profile cyber attacks that tend to create some apprehension around innovation within executive levels and management,” Gray said. “Boards and stakeholders need to know that whilst the business is innovating to remain competitive and relevant, they are not exposing themselves to too much security or reputational risk, this is certainly a difficult balancing act.”

Globally, 65 per cent report a skilled shortage holding them back, up from 59 per cent last year and 89 per cent are concerned about retaining talent.

Compared to previous years, project success rates are declining. Infrastructure projects and external and customer-facing projects such as website and mobile app design enjoyed strong success rates. However, offshoring remains challenging, with only 42 per cent of respondents reporting success outsourcing functions overseas.

Growing cyber security concerns

Fast-changing security threats have left CIOs feeling less prepared.

“The proportion of IT leaders who believe their organisation is very well prepared to identify and respond to cyber attacks and IT security threats continues to fall. Only one in five (22 per cent) are now confident that all reasonable risks are covered, compared with 29 per cent in 2014. More than one in ten IT leaders (12 per cent) now believe their organisation is exposed in multiple areas, the same proportion as last year,” the report said.

The risk of cyber attack by organised criminals is the biggest concern (69 per cent) and 8 per cent) believe amateur cyber criminals pose a great risk. Only four in ten (40 per cent) think insiders – current or former employees – present a comparable cyber risk.

Two-Speed IT?

This week The Boston Consulting Group argued the time has come to put the notion of two-speed IT to bed and instead shift to an all agile approach to technology.

“I think we still see a majority of businesses follow the notion of two-speed IT, but there is also an appreciation that innovation needs to be given creativity and space; and that space needs to be deliberate and consistently offered,” Gray said.

“Equally people realise that the best innovations are not often ground breaking, but simply improve the way we do business. This means in a business context for sustainability and meaningfulness, innovation must be pervasive and highly valued throughout the business, and certainly not something that a few ‘digital natives’ do within a secret department do.”

CIOs feeling the love

On the back of a wave of digital disruption, the role of CIO is now broader and more influential according to the study’s authors.

For instance, CIOs are now more likely to play a role in security and strategy

Now in its 18th year the report measures CIO sentiment and trends in IT leadership based on responses from 3,352 technology leaders.

Gray says she has witnessed a dramatic change in skills requests from boards and CEOs looking for a CIO.

“The skills and behavioural requirements prioritise customer centricity, humility and adaptability, whereas if you think back only a few years ago, we were hearing more about successful project delivery, presence and operational experience,” Gray explains.

Australian CIOs are more likely to be focused on generating revenue than their global counterparts. According to the study, 70 per cent of Australian CEOs want IT to make money rather than save money, compared to 63 per cent globally.

“This will of course demand a more commercial and strategic mindset from the CIO and force a reshuffling of priorities. This also is reflected in the stat that Australian CIO’s think their role is growing in influence — 69 per cent as opposed to 67 per cent globally,” Gray said.

CIO priorities 2016

Globally 34 per cent of CIOs now report to the CEO, up from 31 per cent last year and 57 per cent sit on executive board or senior leadership committees.

There is a also a link between job satisfaction and to whom a CIO reports. “Respondents who report to the CEO are more fulfilled than peers who report to the CFO, and respondents who sit on the executive management board are the most fulfilled,” the report says.

“CIO job fulfilment is up for all categories in 2016. However, IT leaders at smaller organisations are more fulfilled than peers at mid-sized and large organisations.”

This article originally appeared on B&T’s sister business site www.which-50.com

Please login with linkedin to comment

Latest News

Does Your Christmas Marketing Suck?
  • Opinion

Does Your Christmas Marketing Suck?

It's the most wonderful time of the year for the worst kind of marketing. Is your brand guilty of producing crappy Christmas conte

Opinion

by Peter Harris

Peter Harris
Study: Aussie Retailers Set To “Struggle” Over “Stagnate” Christmas
  • Marketing

Study: Aussie Retailers Set To “Struggle” Over “Stagnate” Christmas

According to IBISWorld, Christmas retail spending in Australia is expected to stagnate this December, falling by 0.2 per cent compared to the same time last year. While not all categories are impacted, IBISWorld is attributing the overall decline to lower discretionary incomes, negative consumer sentiment, and price discounting across the retail sector. “Overall, IBISWorld has observed early […]

Industry Diversity: It’s More Than Skin Deep
  • Opinion

Industry Diversity: It’s More Than Skin Deep

In his final column for the year, B&T’s favourite industry maverick and troublemaker, Robert Strohfeldt, turns his opinion pen to adland’s topic du jour – diversity. And, he says, it’s as much about the thinking as it is who you employ at your agency… There is an old (and wise) statement most people would have heard […]

Opinion

by B&T Magazine

B&T Magazine
Queensland Anti-Porn Crusaders Cop Ad Ban
  • Campaigns

Queensland Anti-Porn Crusaders Cop Ad Ban

We have a strident anti-pornography policy at B&T. Earphones must be worn at all times and strictly no little people.

by B&T Magazine

B&T Magazine
Nature’s Way Celebrates Big Things Little People Do In UCG Videos Via Wavemaker & Storyful
  • Advertising
  • Campaigns
  • Marketing

Nature’s Way Celebrates Big Things Little People Do In UCG Videos Via Wavemaker & Storyful

Health and wellbeing company Nature’s Way is celebrating the achievements of kids in a series of relatable and entertaining online videos that tug at the heart strings of parents. Instead of using actors to tell the brand story of Nature’s Way’s Kids Smart supplement range, Storyful has helped Wavemaker to license user-generated content clips of […]

DEC PR Wins Hisense Account
  • Marketing

DEC PR Wins Hisense Account

Electronics and whitegoods specialist Hisense has announced it has appointed DEC PR to lead its strategic communications remit in the local market, following a competitive tender process. DEC PR will work to support its brand building activities and managing corporate communications. The agency’s work will integrate closely with Hisense’s other marketing partners. Andre Iannuzzi, marketing […]

QMS Media Expands Presence In Melbourne With New Digital Billboard ‘The G’
  • Advertising
  • Media

QMS Media Expands Presence In Melbourne With New Digital Billboard ‘The G’

Outdoor media company QMS Media has strengthened its digital outdoor presence in Victoria, unveiling an iconic digital billboard in the heart of Melbourne’s famous sporting precinct. The launch of ‘The G’ sees QMS’ landmark digital portfolio ‘bookending’ arguably one of the most iconic and in-demand digital outdoor locations in Australia – Richmond Station Bridge – […]

HSBC Sydney 7s Creates New Visual Identity For 2018 Via Digilante
  • Advertising
  • Campaigns
  • Marketing

HSBC Sydney 7s Creates New Visual Identity For 2018 Via Digilante

As part of the HSBC World Rugby Sevens Series, the Sydney 7s event returns in January complete with a new brand identity, creative strategy and media campaign. With the 2017 Sydney 7s a sell-out event, the challenge for 2018 was to carry that momentum into the third year, defining Sydney’s place as the new ‘go-to’ […]

Bound Round Launches Family Travel Publication for Aussies
  • Media

Bound Round Launches Family Travel Publication for Aussies

Family travel platform Bound Round has announced the launch of its first e-magazine to Australian consumers. Travel Bound is a family-focused, digital quarterly publication available on all Virgin Australia flights through the carrier’s in-flight entertainment system, and is also available for consumer download via the Bound Round website. Bound Round founder and CEO Janeece Keller […]

SBS Unveils New Look, New App For SBS News
  • Media

SBS Unveils New Look, New App For SBS News

Do you like say "I only watch SBS" in an attempt to sound smarter than you are? Well, why not pretend to read this too?

by B&T Magazine

B&T Magazine
Ex-Samsung CMO Joins Amazon Australia As Marketing Director
  • Marketing

Ex-Samsung CMO Joins Amazon Australia As Marketing Director

Amazon Australia has appointed former Samsung Electronics chief marketing officer (CMO) Arno Lenior to lead its marketing division. Lenior worked as Samsung’s CMO for more than three years before departing in 2015. According to his LinkedIn profile, he has also held CEO roles at VR company Virtical and brand consultancy Blue Ocean Brands, and joined […]

by B&T Magazine

B&T Magazine
News Corp Names Its Car Of The Year
  • Marketing

News Corp Names Its Car Of The Year

News announces its annual Car Of The Year and it's not what you'd expect. Well, we certainly didn't expect it anyway.

Aussie Tennis Open & Country Road Announce New Partnership
  • Marketing

Aussie Tennis Open & Country Road Announce New Partnership

The Australian Open has partnered with iconic Australian clothing and lifestyle brand Country Road to supply the uniforms for next year’s tournament. Confirmed today as the official fashion lifestyle Partner of Australian Open 2018, one of Australia’s most loved brands will be worn by thousands of tournament staff at Melbourne Park in January. On-court officials including the chair and […]

Andrew O’Keefe Quits His Weekend Sunrise Duties
  • Media

Andrew O’Keefe Quits His Weekend Sunrise Duties

After 12 years with Weekend Sunrise, Andrew O’Keefe has decided to step away from his hosting and reporting duties. O’Keefe will continue his full-time role as host of Seven’s quiz show The Chase Australia, as well as focus on other projects with the Network. “The ideal job is doing work you love with people you love,” O’Keefe […]

Study: Brand Loyalty Hinges On Customer Support Experiences
  • Marketing

Study: Brand Loyalty Hinges On Customer Support Experiences

Fast and effective support will be a competitive differentiator for companies looking to win over digitally transformed customers and employees, new research has revealed. According to a study by IDC and LogMeIn titled Support Services as a Competitive Differentiator, nearly 67 per cent of consumers said that customer satisfaction was more important than price when […]

OMA Appoints Red Ant Design To Build Industry’s First Automated Proposal Platform
  • Advertising
  • Media

OMA Appoints Red Ant Design To Build Industry’s First Automated Proposal Platform

The Outdoor Media Association (OMA) has announced the appointment of Red Ant Design to build the out-oh-home (OOH) industry’s first automated proposal platform (APP). After an extensive global search and industry consultation, the decision to build the system in-house with a local Australian company was made. The APP will be built in an agile process, […]

Nick Ballard, Managing Director
Australia & New Zealand, BlisMedia
  • Marketing
  • Technology

Blis Unveils New Consumer Behaviour Analytics Tool For Maketers

Location data technology company Blis has launched an analytics tool that allows marketers to analyse consumer behaviour – from audience profiling, to exposure, to attribution – by capturing and activating mobile movement data. Smart Trends offers robust in-store consumer behavioural insights and in-store comparison of multiple location types and brands, allowing marketers to break down demographic, […]

WiTH Collective Linked By Isobar Renames Colours Of The Great Barrier Reef As Part Of New Campaign
  • Campaigns
  • Marketing

WiTH Collective Linked By Isobar Renames Colours Of The Great Barrier Reef As Part Of New Campaign

The Great Barrier Reef is under threat, and WiTH Collective – part of Isobar Australia Group – has launched a social movement to protect it. The ‘Unite for the Reef’ campaign will put vivid pops of colour into millions of social media feeds as a global network of individuals united to pledge support for the future of the Great Barrier Reef.  Spearheaded […]

Imagination Unveils Creative For Sydney’s NYE 2017 Celebrations
  • Marketing

Imagination Unveils Creative For Sydney’s NYE 2017 Celebrations

The City of Sydney has unveiled the creative line-up for 2017 Sydney New Year’s Eve celebrations, including a new look and theme for Australia’s largest public event, conceived by experience agency Imagination. In its seventh year as the creative team behind the event, Imagination has set out to create a fresh, inspiring new theme and […]