The long-term effects of inflation continue to contribute to economic uncertainty, company layoffs and concerns about a global recession. Worldwide IT budgets are also experiencing a slowdown in growth — falling behind the 6.6% global inflation rate predicted for this year by the International Monetary Fund (opens in a new tab). It’s little wonder, then, that CIOs are laser-focused on managing costs, optimising performance and attracting top talent. But that’s not all that is on their minds this year.
Key Takeaways
- CIOs’ influence continues to permeate their organisations.
- Many of their priorities stem from ongoing digital transformation and supporting a hybrid workforce.
- CIOs are weighing their decisions against a backdrop of economic uncertainty.
Top 11 CIO Priorities and Trends
As technology and digitalisation continue to change the way businesses work, CIOs are uniquely positioned to drive their organisations forward in innovative ways. But as the adage goes, with great power comes great responsibility. That means CIOs must constantly analyse the global business, economic and tech landscapes to make sure their priorities are in sync with broader trends. What’s top of mind for CIOs this year? Mainly a continuation of what they have already been working on.
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Business Strategy
The CIO role has evolved from day-to-day IT manager to strategic business adviser who takes an active role in aligning advanced technology with organisational objectives. Indeed, 85% of CIOs see themselves as ‘changemakers’ who lead business and technology initiatives, according to CIO.com’s global ‘State of the CIO Study (opens in a new tab) ’. More than three-quarters cited the COVID-19 pandemic and state of the economy as reasons for their heightened leadership status.
CIO effectiveness necessitates strong alliances with fellow C-suite executives, boards of directors and department heads, if CIOs hope to further the organisation’s goals and develop strategic technology roadmaps. This CIO-led collaboration clarifies goals and helps determine the technologies needed to achieve them. It also fosters greater business agility and operational efficiencies, enabling organisations to meet their strategic objectives and realise a positive return on technology investment.
- Digital Transformation
In the Asia-Pacific (APAC) region, digitally connected products, services and customer experiences are forecasted to account for up 43% of the region’s revenue, according to IDC. CIOs are in a prime position to drive this digital transformation, which fundamentally changes how an organisation operates and delivers value to its customer.
To this end, CIO responsibilities include cooperatively developing and implementing new digital strategies, managing the organisation’s digital infrastructure and enabling innovation across the organisation by promoting a culture of experimentation and risk-taking. In addition, forward-looking CIOs also view digital transformation as an ongoing effort that requires a change management plan to guide staff through the transition.
- Cloud Platforms
At the heart of any digital transformation is the cloud, where third-party providers supply all necessary computing resources — including infrastructure, software and storage — via the internet, and organisations purchase subscriptions to access what they need. Globally, the market for cloud computing is expected to cross the trillion-dollar threshold by 2030, with fastest growth in the APAC region attributable to growing businesses that plan to concentrate more on digital initiatives, according to Research and Markets (opens in a new tab) .
CIOs will continue to lead their companies into the cloud. Among their priorities: defining what KPMG (opens in a new tab) calls a ‘cohesive vision’, in collaboration with colleagues; identifying opportunities where cloud platforms can lead to better business performance and reduced costs; evaluating cloud platforms and partnering with providers; and driving adoption of new operational processes across their organisations.
- Automation
An indispensable component of digital transformation is automation. Indeed, 79% of CIOs cited automation’s increasing importance in transforming their organisations’ ‘pursuit of higher efficiencies’, per the CIO.com survey. Automating core business processes using artificial intelligence (AI) and machine learning (ML) can save significant amounts of time and money by reducing the degree of manual labour needed to complete tasks and freeing staff to work on higher-level projects.
Automation will continue to be a priority beyond 2023, thus supporting a CIO-led strategy that embeds automation wherever it can make the biggest impact. The accounting function is one such area: Automation can handle some or all of the steps involved in the accounting cycle, including processing invoices, managing approvals and issuing payments.
- Remote/Hybrid Workforce
As in the rest of the world, the COVID-19 pandemic sped the adoption of remote and flexible work arrangements in APAC. Despite more companies in the region calling for their employees to return to the office, the desire among workers to work remotely at least part of the time remains strong among two-thirds of approximately 18,000 APAC employees, according to PwC (opens in a new tab) .
CIOs will need to continue prioritising the best ways to support the needs of a hybrid workforce, bringing in the right mix of technologies that promote collaboration without risking corporate security, hampering productivity or degrading the employee experience. The cloud is certainly key, including cloud-based applications, storage and backup. So are collaboration, communication tools and remote-access technologies, such as virtual private networks and virtual desktop infrastructure.
- Cybersecurity
Increased efficiencies, lower operational costs and improved customer experiences are among the many benefits companies cite when they digitalise their business processes. But with digitalisation, they also expand their possible cyberattack surfaces (even more so due to remote and hybrid working arrangements) — keeping concerns about cybersecurity in the foreground. Statistics underscore the importance of vigilance, with APAC leading all regions for the highest number of cyberattacks in the past two years, according to IBM’s 2023 ‘Security X-Force Threat Intelligence (opens in a new tab) ’.
CIOs, working closely with their chief information security officer colleagues (if their companies employ one), must remain vigilant if they’re to keep their organisations safe. This emphasis on cybersecurity calls for the development of a comprehensive strategy that accounts for the risks — Emotet malware, spear-phishing and ransomware being among the biggest, per IBM — creates multiple layers of protection and sets forth controls and measures that block unauthorised network and service connections. Role-based access control, strong encryption, IP access restriction and multifactor authentication are among the main security features to look for when adopting a new cybersecurity solution.
- Data Management and Analytics
The more companies digitalise their operations, the more data they generate and collect. CIOs will continue to play a crucial role in managing huge volumes of intelligence that, in turn, APAC data professionals expect will drive business transformation, recognise opportunities for innovation and improve customer loyalty in their region, according to Sisense(opens in a new tab) . To realise these benefits, CIOs must possess a deep understanding of data and analytics; database technologies, such as data warehouses and data lakes; and analytics tools and techniques, such as data mining, machine learning and predictive analytics. CIOs should also understand the importance of data governance and ensure that the business is a good steward of the data it collects. Data security, privacy and compliance all fall under the governance umbrella.
- Customer Experience (CX)
Customer experience (CX) refers to the overall perception that customers have of their interactions with a business, along the buying journey — much of which is now performed online and, thus, is reliant on technology. Simply put, a stellar CX bestows a competitive advantage: Nearly three-quarters of APAC consumers spend more with companies that provide a seamless, omnichannel experience, according to Zendesk’s global ‘CX Trends 2023 (opens in a new tab)’ report. Brand loyalty is another plus.
Given that 81% of CIOs are implementing new technologies to optimise customer interactions, according to the CIO.com survey, it’s clear CIOs understand the importance of CX and that they should stay on that path. Customer relationship management (CRM) systems, chatbots, artificial intelligence and self-service portals are some key tools. So are customer experience platforms and customer data platforms, which help businesses better understand customer behaviour, allowing CIOs to embrace segmented and personalised marketing campaigns that improve interactions.
- Digital Collaboration Culture
Digital collaboration and communications tools — such as project management and document-sharing software, videoconferencing, instant messaging and cloud-based apps, to name a few — make remote and hybrid work arrangements possible. They also encourage an environment of teamwork, innovation and knowledge-sharing, no matter where staff is located, which can boost employee engagement, productivity and job satisfaction. To foster a digital collaboration culture, CIOs need to continue providing employees with the necessary tools and technologies, as well as training and communication guidelines about how to use them efficiently and effectively, particularly across geographies where cultural etiquette often varies. Ultimately, the goal is to identify, model and encourage behaviours that contribute positively to achieving business goals.
- Sustainability
Corporate interest in environmental, social and governance (ESG) initiatives has grown significantly worldwide over the past several years. In the APAC region, the number of companies with ESG policies have doubled since 2016, along with improvements in corporate disclosure equal to or above that of the United States, according to Goldman Sachs(opens in a new tab) . At the same time as investors, regulators and supply chain partners are demanding greater transparency, job applicants are also screening potential employers for sustainability actions and commitments.
At the heart of these efforts are technologies capable of analysing large volumes of information to empower companies to understand and better manage their impact. As a result, CIOs are emerging as key figures in leading a sustainability-driven tech strategy, which could include implementing energy-efficient technologies, encouraging a culture of sustainability and partnering exclusively with organisations that support the same values. Also key is having tools that gather data and insights to prove the company’s sustainability efforts.
- Technology
The CIO role is inherently intertwined with technology, including the ones already described. But CIOs must also be ready to incorporate new technologies still coming over the horizon. Specific areas of focus, according to Info-Tech Research Group’s global ‘2023 Tech Trends (opens in a new tab) ’ report, include advanced technologies such as artificial intelligence (AI) and immersive experiences; generative AI, which can produce various types of content based on large data sets; data lake and data mesh platforms, both of which aim to manage large volumes of data but in different ways; and zero-trust security as a means of protecting against cyberattacks by putting in place strict network access controls and multiple means of authentication. As the report states, ‘It’s the role of the CIO to push the organisation harder. While maintaining existing technology, they must set goals for technology to support the business to move faster and perform better’.
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CIOs must also monitor the tech landscape for innovations that could improve the way their organisations work. For example, discussions about — and early prototypes of — hologram and virtual reality technology are emerging, providing a glimpse of their potential for making video conferences more realistic, immersive and engaging.
Modern-day CIOs are strategic business leaders who are responsible for driving business strategy and innovation, improving the customer experience and protecting their organisations from cyber harm. They are in a unique position to leverage technology, such as automation, to create new business models, streamline operations and drive growth. These are exciting but challenging times for CIOs, given the need to also manage costs amid ongoing economic uncertainty.
Top Priorities for CIOs FAQs
What are CIOs focused on?
CIOs have many important items on their 2023 priority lists, all of which ladder up to determining how to use technology to trim costs, improve efficiency and productivity, and facilitate competitive differentiation.
What are the top priorities for CIOs?
Top priorities for CIOs in 2023 include automating business processes, enhancing the customer experience and safeguarding their networks amid a hybrid workforce.
What are the biggest challenges for a CIO?
Some of the biggest challenges for CIOs in 2023 include protecting their organisations from cybersecurity risks, implementing technology that expedites the hiring process, supporting the needs of a hybrid workforce and managing costs in the face of rising inflation.
What should a CIO do in the first 90 days?
A new CIO can use the first 90 days in the role to get a clear picture of the state of existing technology within the organisation and to conduct an audit of the organisation’s security procedures. The CIO can also use that time to start shaping an IT strategy and execution plan.
What do CIOs care about in 2023?
CIOs are focused on a number of priorities, including leveraging technology to optimise performance, attract top talent, streamline operations and drive business growth.
