Gartner Research

CIOs Should Follow the Money to Succeed in Digital Business

Published: 24 August 2015

ID: G00291279

Analyst(s): Sanil Solanki, Michael Smith, Paul Proctor

Summary

Based on analysis of previous waves of technology-driven innovation, Gartner predicts that by 2018, the unintended negative consequences of treating digital business as a non-IT expense will be recognized and corrected, requiring new and broader leadership skills from the CIO.

Table Of Contents
  • Key Question
  • Opportunities and Challenges
  • How This Report Will Help

Foreword

  • Acknowledgments

Executive Summary

  • Every budget is an IT budget
  • Technology-driven innovation usually starts with non-IT professionals
  • Develop the skills necessary to support digital business

Every budget is an IT budget

  • The definition of IT spending is expanding rapidly
  • Gartner predicts that CIOs will control only 50% of IT spending by 2017
  • The new spending on IT will be under the radar of the CFO

Technology-driven innovation usually starts with non-IT professionals

  • Non-IT professionals bring disruptive technology into the enterprise
  • Lack of knowledge about underlying technology leads to disillusionment
  • The responsibility for managing the new technology for digital business will eventually transfer to IT

Develop the skills necessary to support digital business

  • CEOs want CIOs to reduce cost and complexity throughout the enterprise
  • CIOs must start now to be ready by 2018
  • Use the digital services development matrix to budget IT spending in 2018 and beyond
  • Use a bimodal approach to meet the urgency and unknown aspects of investments in digital business
  • Conclusion

Appendix: Case Studies

  • Separating digital business from IT to accelerate transformation at GCPCo
  • Securing, scaling and sustaining digital services at the Government of New Brunswick
  • The CEO of InsCo assigns responsibility for digital business based on existing accountability
  • Trinity Health is preparing for technology-driven changes with an IT expense optimization program

Further Reading

  • Related content
  • Core research

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