CIOs are transforming as companies prioritise security risks and customer centricity.
Now in its 20th year, the Harvey Nash/KPMG CIO Survey 2018 is the largest IT leadership survey in the world, with just under 4,000 responses from CIOs and technology executives across 84 countries.
In this year’s survey, we see the CIO role continue to change as organisations themselves are forced to transform. Traditional focus areas like data privacy and security are more important than ever but in order to remain competitive, IT leaders must turn the risks associated with utilizing customer data into enablers for driving new revenue growth. Indeed the report shows that those managing the balance most effectively, with the customer at the heart of their digital strategy, are significantly more profitable.
While making a success of digital is proving tough, and hampered by an ongoing skills shortage, successful IT leaders are proving resilient and adaptable, and the CIO remains vital in helping their organisation to navigate a digital future. IT leaders are not only helping transform organisations, but the leaders themselves are being transformed, and for many there is a real opportunity to grow and extend their influence. From helping ‘shadow IT’ step out of the shadows, to handling data privacy and security, to getting the balance right between governance and driving innovation - the CIO has a unique perspective on it all.
Wealth and Asset Management firms say they have made some good progress with internal capabilities but have been unable to harness digital technologies to advance client experience and operational efficiency capabilities as much as they hoped.
Achieving scale, efficiency and an improved client experience are fundamental for Wealth and Asset Management firms to succeed in today’s landscape. This will require CIOs to direct investment towards the right technology in the right order and seamlessly integrating the solutions. Digital labour and automation initiatives need to move from prototyping to generating cost savings and into real customer outcomes. CIOs should also start thinking about the value of data they hold and how they use this for the betterment of their clients.
Banks recognize the strategic potential offered by digital technologies to enhance the customer experience, attract new customers, improve business process efficiencies, and create new business models. The challenge many banks face revolves around turning this opportunity into action through a well thought out strategy. Without well-defined digital strategies and initiatives aligned with specific goals, banks will quickly fall behind fintechs looking to disintermediate the banking model or competitors better able to embrace their digital potential.
The CIO survey provides detailed insights banks can use to better understand how they compare to their peers and to develop a more actionable plan to achieve the full range of benefits provided by digital technologies.
Insurers everywhere are laser-focused on the customer. Yet few seem to feel they are very effective at using their new technologies to enhance the customer experience. This suggests that some digital technology investments may not be fully aligned to the needs of the customer. Insurers will need to take an ‘outside-in’ view to understand the voice of the customer and re-examine their end-to-end processes if they hope to maximize the value of their technology investments.
With half of the CIOs in this survey saying they expect their budgets to either decline or remain the same over the next year, we expect to see continued pressure on IT run budgets (as the business continues to seek efficiencies) and development budgets (as business cases come under greater scrutiny). At the same time, however, we expect investment into digital capabilities to rise and, in some markets, for regulatory drives such as IFRS17 to catalyze some new IT investment.