Skip to main content

IT Transformation Hinges Upon Eliminating Friction Between CIOs and CFOs, Says Forbes Insights Report

Despite the high priority enterprises have placed on IT Transformation during the past few years, many of them still haven’t found the secret to gaining significant improvements in customer service and a clear competitive advantage from these efforts. A new study helps explain why. Less than stellar IT Transformation results often center on problems that arise between two pivotal players—CIOs and CFOs—and their struggle to work together as a cohesive team.

A new report by Forbes Insights, in association with Dell EMC, "IT Transformation: Success Hinges on CIO/CFO Collaboration," finds that a stunning 89% of senior executives acknowledge that significant barriers exist—ranging from outdated ideas about the role of CIOs to obsolete reporting structures—that keep CIOs and CFOs from collaborating more closely. The study’s data derives from a global survey of 500 CEOs, COOs, CIOs and CFOs conducted by Forbes Insights and Dell EMC. The survey and a series of in-depth interviews with global IT and business executives also highlight other underlying frictions that thwart CIOs and CFOs from forming a united front to capitalize on the benefits of IT Transformation.

But a select group of enterprises that succeed in IT Transformation offers hope for ensuring that IT infrastructure modernization strategies can overcome these barriers and deliver concrete business results. In fact, companies that succeed in IT Transformation report the strongest competitive positions and high growth—with gains in both sales and profits of 7% or more in the past year. This group demonstrates a direct correlation between business success and transformation maturity, with 68% of leaders rating IT Transformation as an established strategic priority and in many cases a component in overall business strategies. The research and interviews also show what best practices IT Transformation leaders have developed to overcome these barriers and enable them to use their digital prowess to increase the value of their businesses. “Some CFOs still see IT as just a cost center, which doesn’t make collaboration easy,” said Bruce Rogers, Chief Insights Officer at Forbes Media. “And CIOs need to apply their skills to core business processes like supply chains.”

“IT Transformation is quickly moving from a differentiator to a non-negotiable strategy for companies seeking to reduce time to market and pull ahead of the competition,” said Gaurav Chand, Senior Vice President of Marketing at Dell EMC. “The CIO/CFO dynamic has significant influence in any business—and collaboration between those roles is the key to tying IT investments to business outcomes. Companies not already moving toward IT Transformation need to start now, or be left behind.”

Key takeaways:

·         89% of senior executives acknowledge that significant barriers keep CIOs and CFOs from collaborating more closely on IT Transformation
·         Companies with the most successful transformation efforts see 7+% gains in sales and profits
·         IT transformation leaders are more than 2X as likely to report they are ahead of their competition and 2.5X more likely to report return on investment in 12 months or less.
·         85% of global executives plan to spend up to a quarter of their total enterprise budgets on IT Transformation in 2018
·         The top three investment areas in the next year will be big data platforms (77%), cloud services (76%) and social-media activities (72%)
·         75% of global enterprises will invest in IT process reengineering, while 69% will automate IT as a service and 67% will install new server technologies
·         The top goals for IT Transformation are reduced IT costs (75%), being first to market with new products and services (73%) and reallocating funds to strategic business projects (67%)
·         Leading companies see significantly faster returns on their transformation investments, with a quarter registering paybacks within 12 months


Comments

Popular posts from this blog

Cloud Computing powering India’s priority of ‘Digital-first country’

By: Sunil Mahale, India MD and VP, Nutanix
Digital transformation has been recognized as being vital to the growth of our nation. This transformation has enjoyed the unanimous approval and contribution from all stake holders including enterprises, MSMEs, government bodies and citizens. But this level of adoption in a country with a population of over a billion people would need a robust technology base that is capable to collecting and distributing vital data seamlessly.
Digital India envisions creating high speed digital highways, that will impact commerce and create a digital footprint for every individual. Technologies based on mobility, analytics, Internet of things and most importantly, cloud technologies are the building blocks for the digital India missionThere is a growing need to manage huge volumes of data, and making them readily available to public through digital cloud services. Cloud has a pivotal role in enabling this change.
While Data centers have become crucial to th…

RevStart launches its RevItUp Incubation Programme

Underlining its vision of creating a nurturing ecosystem for start-ups to grow in, RevStart, a co-working and incubation centre, has announced the launch of its RevItUp Incubation Programme. The 12-week long programme will be held at RevStart Incubation Centre in Noida from July 1, 2018 onwards. As part of the programme, RevStart will select five high potential start-ups from the ed-tech sector, AI, Consumer Internet, Sustainability, as well as for-profit social impact companies to assist them with developing their business, along with connecting them to global mentors across industries and sectors. In addition, start-ups selected for the programme will receive INR 5 lakh to Rs. 25 lakhs worth of cash and benefits, while RevStart will get an equity stake in the ventures.
The RevItUp Incubation Programme has been created to enhance the founding team’s industry, product, and company building knowledge and capabilities through a world-class curriculum. The programme will focus on tailor…

Insurtech startup Kruzr raises $1.3 Million from Saama Capital and Better Capital

InsurTech startup Kruzr has raised 1.3 Million USD (Rs. 9.5 Cr) for its seed round led by Saama Capital with participation from Better Capital. Kruzr is a preventive motor insurance technology which helps insurance companies personalize policy premiums & improve their risk model by delivering an engaging preventative driving assistant to their customers. Kruzr is founded by Pallav Singh, Ayan, and Jasmeet Singh Sethi.

Kruzr blends the power of voice technology and artificial intelligence in its personal driving assistant that helps drivers minimize mobile distractions, drowsy driving, speeding and external risks like weather and accident-prone zones. In pilots with insurers, Kruzr managed to cut down distracted driving by 80%. Kruzr is working with motor insurance companies in Europe, UK and India to bring its technology to their customers to prevent accidents & improve claims.

“Road accidents cause over 1.3 million deaths globally every year, and motor insurance companies los…