Canadian CIOs: Find Money in Creative Ways

Canadian CIOs should think creatively about digital transformation and cost optimization.

Although global respondents to the 2018 CIO Agenda survey estimated 2018 budget increases at 3%, Canadian CIOs are looking at budget tightening with a 1.3% increase in IT funding. This is just under half of last year’s 3% increase, and means that CIOs need to be creative as they look for funding.

Gartner analyst Chris Howard on Canadian CIOs and the average expected IT budget change for 2017 to 2018

As budgets tighten, CIOs should move toward digital transformation. A combination of traditional and nontraditional means will enable them to secure funds to do so.

Cost optimization: Look outside IT for potential cost optimization opportunities to drive improved business performance. The difference between an average enterprise and one that is a best-in-class performer is typically 20% to 50% in costs, quality and/or speed. Don’t forget to take advantage of every cost optimization opportunity within IT as well.

Business-unit funding: Look for business units currently using shadow IT and embrace that as a mechanism to drive digital transformation across the company. Take advantage of properly governed, managed and guided shadow IT to create value for the organization.

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Digital optimization: 42% of CEOs report their digital ambition is to achieve business optimization, according to the Gartner 2017 CEO Survey. Address top-level business objectives in eight ways:

  1. Improve existing revenue
  2. Reduce cost of goods sold
  3. Reduce selling, general and administrative
  4. Improve employee productivity
  5. Enhance customer experience
  6. Optimize inventory and yield
  7. Optimize physical assets
  8. Optimize financial assets and cash

Gartner clients can read the full report in 2018 CIO Agenda: A Canada Perspective with Chris Howard.

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