1. Protect digital sovereignty
Digital sovereignty will be a primary source of complex, dynamic and expanding compliance obligations for multinational enterprises. Governments are primarily addressing it through their legislative and regulatory powers, such as privacy laws like the GDPR, and are increasingly turning to extraterritorial legislation. Companies that deal with the citizens of a jurisdiction are required to comply with its laws, regardless of where the company operates or where the citizens reside.
CIOs must be proactively engaged in ensuring that the IT organization’s operating model and practices reflect current laws and regulations in place. Their role is to be aware of the legal environment and articulate to other executives how the IT organization supports compliance across the enterprise.
2. Build a local technology industry
The technology industry is of great interest to public policymakers around the world due to its size, fast growth, strategic importance, tax revenue, employment possibilities and lack of requirement for a specific national resource advantage.
Many national governments are investing in developing a home-grown tech sector. For example, the U.S. seeks to address regional imbalance in global chip production through the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act, and the Australian Government’s Digital Economy Strategy 2030 includes building a dynamic and emerging tech sector as a key pillar.
Efforts to establish a domestic technology industry provide CIOs with an opportunity for proactive engagement with governments. They must localize specific initiatives into countries that have the best integration between local expertise and access to government co-innovation support.
3. Achieve necessary military capability
The growing digitalization of national military and security operations will limit the availability of some technologies within various countries. Enterprises and CIOs are impacted by the emerging sphere of cyberwarfare, as well as the digitalization of existing warfighting and security technologies.
CIOs can no longer count on the availability of technology used by the enterprise for its operations in any country in which it operates and will likely be faced with restricted and mandated suppliers. To minimize disruptions, they must establish a vendor and technology risk center of excellence, chartered with a regular assessment of the exposure of key suppliers to evolving government restrictions.
4. Exert direct control over the governance of cyberspace
National competition for control over the governance of cyberspace will impact the operations of multinational enterprises. As digital technology weaves itself through all aspects of society, nations are seeking to ensure that their own technologies reflect and support their core values and their citizens. Governments are increasingly concluding that they need a protected national digital infrastructure.
The machinations by governments for control over cyberspace governance are beyond the influence of CIOs, but they will have profound impacts on a business’ ability to operate internationally. CIOs can advance the executive team’s understanding of cross-national competition for control over cyberspace and the impacts to their enterprise’s operations by leading an annual cyberspace environmental update briefing.
Gartner clients can read more in “What Forces Are Driving Digital Geopolitics and Where CIOs Should Focus” and “3 Critical Actions for Executives to Cope With Long-Term Impacts of Geopolitical Tensions.”
Learn about the top leadership priorities for CIOs in 2022 in the complimentary Gartner ebook 2022 Leadership Vision for Chief Information Officers.
Gartner IT Symposium/Xpo
CIOs and IT executives will learn more about geopolitical risk and how to meet the moment and provide the vision and results needed to lift their organizations to the next level at Gartner IT Symposium/Xpo 2022. Follow news and updates from the conferences on Twitter using #GartnerSYM.
Upcoming dates and locations for Gartner IT Symposium/Xpo 2022 include:
October 17-20 | Orlando, FL
September 12-14 | Gold Coast, Australia
October 31-November 2 | Tokyo, Japan
November 7-10 | Barcelona, Spain
November 14-16 | India
About Gartner for Information Technology Executives
Gartner for Information Technology Executives provides actionable, objective insight to CIOs and IT leaders to help them drive their organizations through digital transformation and lead business growth. Additional information is available at www.gartner.com/en/information-technology.
Follow news and updates from Gartner for IT Executives on Twitter and LinkedIn. Visit the IT Newsroom for more information and insights.