Digital: Why The C-Suite Now Own It (& Why We Want It To Make Us Money, Not Save It!)
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.
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.
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.
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
Advertising Standards Bureau einsights Harvey Nash inskin mediaLatest News
TV Ratings (18/04/2024): I’m A Celebrity Wins Prime Time And Key Demos
Aussie viewers can be a harsh lot at times. Only days after Ellie Cole bled her heart out, she has been sent packing.
Effie&co Launches New ConnectAsia Division To Help Aussie Brands Market To Asian Consumers Overseas & At Home
Boutique full-service communications agency effie&co has launched its ConnectAsia division, which will assist Australian fashion and lifestyle brands to market directly to Asian consumers, both in Australia and overseas. Lead image: effie&co PR Director Stephanie Carden. Leading the charge is newly-appointed effie&co ConnectAsia Director, Yunzhou Li, a cross-cultural marketing expert with over 18 years’ experience […]
Cashrewards Sets Out Stall For New CMO
Thinking of applying for the Cashrewards CMO gig? Here are some insider tips that, yes, are tantamount to cheating.
‘I Ask For The TV Industry To Stand Up And Defend Itself’ – Seven Boss James Warburton Steps Down
The Seven supremo heads for the exits after five years. Here's hoping the Spotlight team organised the farewell bash.
New Judges, Chefs And A Viral Week – Masterchef Promises To Be Bigger And Better Than Ever Before
It's your fan's guide to this year's MasterChef! Although no tips on how to pronounce crudités or use a un fait-tout.
Dentsu’s iProspect Partners With MOOD Tea Ahead Of May Campaign Launch
We love a Mood Tea here at B&T. Although we do store old screws and nails in the International Roast caterer's tin.
Opinion: When Culture Starts Eating Itself: Navigating The Age Of Self-eating Nostalgia
Born boss David Coupland asks is adland going through a nostalgia period? But please, no repeats of Best Of Red Faces.
Who’s Going To Cannes?! The TikTok Young Lions Winners!
It's Aussie adland's next gen! They're off to Cannes with high hopes of bringing back a Lion & a foot-long Toblerone.
Adobe Launches Express Mobile App With Firefly AI
Want to be the coolest kid at Friday staff drinks but forgot your retro Nikes? This new Adobe wizardry may do the trick.
ThinkNewsBrands & IMAA Extend News Publishing Education In Brisbane
Industry duo takes its publishing roadshow to Brisbane. Was disappointed no male attendees were wearing walk socks.
B&T Chats With Wavemaker’s Provocative Pioneers On Their Cross-Pacific Sojourn
B&T TV heads to Wavemaker's Sydney digs to interview two staffers from its New York & LA digs. If that makes sense?
HoMie & Champion Launch “Give One. Get Oe” Campaign Supporting Youth Homelessness Via Town Square
Much like the fête's prized chutney wears a blue winners sash, so too should this top initiative from HoMie & Champion.
Thinkerbell Takes Us Back To Summer In Latest Work For XXXX
This beer ad wants to take you back to summer! Just minus any chance of a shark attack on your morning bus commute.
Cannes Lions Unveils 2024 Programme Featuring Queen Latifah, Jay Shetty & P&G’s Mark Pritchard
Are you one of the lucky ducks heading to Cannes in June? Check out the headliner acts you'll be queueing hours to see.
Scroll Media Recruits Costa Panagos From Twitch
Costa Panagos set to bring South American flair to the Scroll offices. Assuming that he is, indeed, South American.
Year13, Microsoft & KPMG Australia Launch AI Course For Gen Zs
Born around the 2000s? Need to amp up your AI creds? This guide's for you (although it's not really that age specific).
General Motors Snares Heath Walker From Scania
Do you rage about oversized American cars on our roads? You need to bail up Heath Walker at parties & industry events.
VML Launches New “Envoyage” Brand For Flight Centre
VML unveils new brand for travel operator Flight Centre. Alas, no sign of those paid actors pretending to be pilots.
Subaru Places Media Account Up For Review
Subaru puts media up for review, as adland journos get set for mandatory "agency drives off with..." headline.
TV Ratings (17/04/2024): Contestants Faced With Harsh Realities As Alone Australia Heats Up (Or Cools Down)
Alone still doing the business for SBS. Overly long train journeys not doing the business, but they persist anyway.
Ben Fordham Loses Number One Spot As Ray Hadley Celebrates 156th Ratings Win
The radio numbers are in! Discover who's off for a boozy lunch today & who's waiting for the dreaded HR death knock.
Gourmet Ice Cream Brand Connoisseur Launches New “Thrill Your Senses” Iteration, Via SICKDOGWOLFMAN
Rattling the old "truth in advertising" adage comes this ice-cream spot full of noticeably thin people.
Paramount’s Global Sales Boss: ‘Australia’s Converged Model Is A Blueprint For How I’d Like All Of Our Markets To Be’
Paramount's global sales boss gives local sales ops the thumbs up. Didn't weigh-in on the Lisa Wilkinson debacle.
TikTok Starts Testing Its Instagram Rival In Australia
In exciting news for piano playing cats & brattish pranks in shopping centres, TikTok unveils its Insta rival plans.
Man Wrongly Named By Seven As Bondi Killer Hires Lawyers
Struggling to save for a house deposit? Why not get wrongly identified by Sunrise!
Smartsheet Appoints Indie Agency Sandbox Media To Its Media Account
Can't stand your colleagues? Like to dob them in when they miss a deadline? These work management platforms are ideal.
Boss Not Letting You Come To Cannes In Cairns? Use This Business Case To Convince Them!
Stingy boss won't spring for a ticket to Cairns? Add this to your persuasive argument repertoire. Or grovel.
Alt/shift/ Brisbane Builds Portfolio With Ausbuild Creative, PR, Content & Social Account Win
The Brisbane comms/PR agency lands constructor Ausbuild. Also hoping for a discount on its new glass conservatory.
Young Guns Versus The Old Guard: Who Adds More Value to Our Industry?
Cannes In Cairns poking this hornet's nest in a lively debate. Just so long as the oldies can get up the stairs.
70% Of Aussies Don’t Have Green Power Plans ENGIE Says In Major Brand Campaign Via HERO
Are you the notorious "light leaver on-er" in your flatshare? Quell any infighting with this green energy news.
PrettyGood Launches Offering Brand & Media Solutions For Australasian SMEs
B&T applauds the charitable nature of this new agency. Although we'd hate to see it impact any Chrissie present sends.
A Blunt End: Dolphins Medicinal Cannabis Sponsorship At Risk
Yes, it's another NRL drug story. Yet, thankfully it doesn't involve coke in Kuta during the off-season.
Slew Of New Creative Hires At Leo Burnett Australia
Ahhh, all black! The outfit of choice for agency creatives, David Jones staff and everyone in Melbourne.
Under Armour Unveils Local “Live in UA” Campaign
American apparel brand set for yet another tilt at the Aussie market, as Nike declares "we'll see about that".
Pepsi Launches New Look, Refreshing Classic Fashion Staples Via Special PR
Are you always the bridesmaid, never the bride, as the old saying goes? How do you think Pepsi feels?
Pure Blonde Returns To A Place Purer Than Yours In New Campaign Via The Monkeys
B&T's always been a huge fan of the 'drink yourself thinner' diet plan. So big thanks to Pure blonde, vodka & tequila.