Emerging Technology Tops CIO Priority Check List

As technology continues to transition from being a tool for conducting business to becoming the business itself, tech is at the forefront of CEOs' minds, according to CIO Priorities Survey conducted by Deloitte.

The majority of CEOs surveyed (57%) plan to embed new technologies in their business model to find opportunities for growth, further validating that this is the golden era of the CIO.

Nearly two-thirds of technology leaders surveyed as part of Deloitte's recent CIO Survey report directly to the CEO, highlighting how the CIO role is being elevated within businesses. Of those surveyed, most have a CIO or CDIO (83%) in their organization with the CTO being the next most common (52%). Of publicly traded companies, the primary technology roles are CIO/CDIO (57%) and CTO (35%).

The CIO Check List: Top Priorities

The increased importance of technology often means CIOs have an expanded mandate, says Deloitte. They need to work to meet the role's operational responsibilities while also creating advantage by driving business outcomes.

Tech leaders surveyed selected the following as their organization's top priorities for this year:

1. Emerging technology: Staying ahead of emerging technologies and solutions (ex. AI/GenAI, Quantum, AR/VR, etc.)

2. Data and artificial intelligence (AI): Embracing the full potential of data, analytics, AI and machine learning

3. Cyber Security: Mitigating cyber risks and preventing cyber incidents and attacks

4. Advocating tech strategy (TIE): Organizing, managing, and rationalizing technology strategy inside the organization

Despite the rise in, and focus on, AI, only one-third (35%) of technology leaders said that embracing its potential or that of data, analytics, or machine learning is their number one priority. Furthermore, only 30% of respondents reported having a chief data/analytics officer (CDAO) role within their organization and 29% of respondents acknowledge that their organizations are at the forefront of these technologies.

Company size also seems to impact the focus on cybersecurity, with two in five CIOs and technology leaders (43%) at companies with 10,000+ employees saying mitigation and prevention of cyber incidents is an important priority, while only one-quarter (26%) of leaders at companies with less than 10,000 employees say the same.

Today's CIO: Technology-Centric or Business-Minded?

The research further supports the importance of technology within organizations as nearly two-thirds (63%) of technology leaders surveyed now report directly to the CEO. Within the technology and energy/chemicals industries, this number is even higher with more than 4 in 5 CIOs/CDIOs in these sectors answering directly to their CEO.

The role tech is playing within business also seems to be impacting the expectations of tech leadership. When asked to rank the defining characteristics of a leading CIO, respondents were split between the conventional (those viewed by themselves and others as running IT) and contemporary (those embracing the opportunity and reinventing the CIO role), saying the traditional, more IT-centric qualities are just as important as the strategic and more customer-focused ones.

"The role of the CIO has evolved significantly; merely being the technical expert within the organization is necessary but insufficient," stated Anjali Shaikh, managing director and US CIO Program Experience director at Deloitte Consulting LLP. "Today's CIOs may need to primarily be business and people leaders — a stark departure from the role's expectations three decades ago, which primarily centered on technology delivery. In an era where technology is the backbone of business, tech executives who adapt to change and foster a growth-oriented mindset are likely better positioned to propel their businesses toward competitive edge and innovation."

Opinions on the required characteristics for CIOs uncovered some nuances by company size. Technology leaders at large companies may be called upon to take more risks for their organizations. When selecting the most in-demand traits, more than half (59%) of respondents from large companies (10K+ employees) selected risk taking as a characteristic of a CIO versus 43% of respondents from small companies (5K-9.9K employees). Additionally, tech leaders with small companies were more likely to say that CIOs should be experts in providing technology support (60%), while those at large companies lean toward tech leaders who are adept at working directly with clients (51%).

CIO Enterprise-Assessment: Strong Points and Areas of Development

Deloitte's survey revealed a gap between what CIOs prioritize and execute, with one-third or fewer CIOs give their organizations an "excellent" grade in how they are executing against top CIO priorities. About one in ten grades their organization as "lagging" or "failing" on top CIO priorities.

Below are the top areas where technology leaders say they believe their organizations are leading the way and where they feel they are trailing competitors or at serious risk:

Leading Edge

■ Talent Management (34%): Attracting, engaging and reskilling technology talent

■ Optimizing IT Strategy (32%): Organizing, managing, and rationalizing technology strategy inside the organization

■ Sustainable IT (32%): Impacting environmental sustainability through technology and data

Trailing Their Competitors or at Serious Risk

■ Risk Management (12%): Mitigation of cyber risks and prevention of cyber incidents and attacks

■ Growth Strategy (10%): Establishing innovation capabilities to drive growth

■ Keeping Current (10%): Staying ahead of emerging technologies and solutions

"The job of a CIO today isn't easy – it's a dynamic, demanding, and critical role that shapes the future of the organization," said John Marcante, CIO-in-Residence, Deloitte US CIO Program. "As technology and corporate strategy become more intertwined, CIOs can be indispensable members of the executive team who can serve as the primary drivers of growth while ensuring efficient, secure, and nimble operations."

In addition to rating their organization's ability to execute against 10 leading CIO priorities, respondents were also asked about the biggest personal barriers they face in their role. The breadth of responses indicates how difficult and expansive the role has become; CIOs aren't facing just one challenge when it comes to developing and executing the strategic direction of technology within their organizations; they're facing many.

The biggest barrier those surveyed cited is measuring, communicating, and demonstrating the value of technology (15%), followed closely by integrating technology across the organization (14%), finding time to stay updated on innovative technologies (13%), and having the needed capacity and resources to deliver technology capabilities (13%).

Methodology: Deloitte conducted an online survey among 211 US-based CIOs and technology leaders from February 9-18, 2024. Participants were screened based on title, company size, company revenue, and responsibility for setting the strategic direction of IT within their organization.

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Emerging Technology Tops CIO Priority Check List

As technology continues to transition from being a tool for conducting business to becoming the business itself, tech is at the forefront of CEOs' minds, according to CIO Priorities Survey conducted by Deloitte.

The majority of CEOs surveyed (57%) plan to embed new technologies in their business model to find opportunities for growth, further validating that this is the golden era of the CIO.

Nearly two-thirds of technology leaders surveyed as part of Deloitte's recent CIO Survey report directly to the CEO, highlighting how the CIO role is being elevated within businesses. Of those surveyed, most have a CIO or CDIO (83%) in their organization with the CTO being the next most common (52%). Of publicly traded companies, the primary technology roles are CIO/CDIO (57%) and CTO (35%).

The CIO Check List: Top Priorities

The increased importance of technology often means CIOs have an expanded mandate, says Deloitte. They need to work to meet the role's operational responsibilities while also creating advantage by driving business outcomes.

Tech leaders surveyed selected the following as their organization's top priorities for this year:

1. Emerging technology: Staying ahead of emerging technologies and solutions (ex. AI/GenAI, Quantum, AR/VR, etc.)

2. Data and artificial intelligence (AI): Embracing the full potential of data, analytics, AI and machine learning

3. Cyber Security: Mitigating cyber risks and preventing cyber incidents and attacks

4. Advocating tech strategy (TIE): Organizing, managing, and rationalizing technology strategy inside the organization

Despite the rise in, and focus on, AI, only one-third (35%) of technology leaders said that embracing its potential or that of data, analytics, or machine learning is their number one priority. Furthermore, only 30% of respondents reported having a chief data/analytics officer (CDAO) role within their organization and 29% of respondents acknowledge that their organizations are at the forefront of these technologies.

Company size also seems to impact the focus on cybersecurity, with two in five CIOs and technology leaders (43%) at companies with 10,000+ employees saying mitigation and prevention of cyber incidents is an important priority, while only one-quarter (26%) of leaders at companies with less than 10,000 employees say the same.

Today's CIO: Technology-Centric or Business-Minded?

The research further supports the importance of technology within organizations as nearly two-thirds (63%) of technology leaders surveyed now report directly to the CEO. Within the technology and energy/chemicals industries, this number is even higher with more than 4 in 5 CIOs/CDIOs in these sectors answering directly to their CEO.

The role tech is playing within business also seems to be impacting the expectations of tech leadership. When asked to rank the defining characteristics of a leading CIO, respondents were split between the conventional (those viewed by themselves and others as running IT) and contemporary (those embracing the opportunity and reinventing the CIO role), saying the traditional, more IT-centric qualities are just as important as the strategic and more customer-focused ones.

"The role of the CIO has evolved significantly; merely being the technical expert within the organization is necessary but insufficient," stated Anjali Shaikh, managing director and US CIO Program Experience director at Deloitte Consulting LLP. "Today's CIOs may need to primarily be business and people leaders — a stark departure from the role's expectations three decades ago, which primarily centered on technology delivery. In an era where technology is the backbone of business, tech executives who adapt to change and foster a growth-oriented mindset are likely better positioned to propel their businesses toward competitive edge and innovation."

Opinions on the required characteristics for CIOs uncovered some nuances by company size. Technology leaders at large companies may be called upon to take more risks for their organizations. When selecting the most in-demand traits, more than half (59%) of respondents from large companies (10K+ employees) selected risk taking as a characteristic of a CIO versus 43% of respondents from small companies (5K-9.9K employees). Additionally, tech leaders with small companies were more likely to say that CIOs should be experts in providing technology support (60%), while those at large companies lean toward tech leaders who are adept at working directly with clients (51%).

CIO Enterprise-Assessment: Strong Points and Areas of Development

Deloitte's survey revealed a gap between what CIOs prioritize and execute, with one-third or fewer CIOs give their organizations an "excellent" grade in how they are executing against top CIO priorities. About one in ten grades their organization as "lagging" or "failing" on top CIO priorities.

Below are the top areas where technology leaders say they believe their organizations are leading the way and where they feel they are trailing competitors or at serious risk:

Leading Edge

■ Talent Management (34%): Attracting, engaging and reskilling technology talent

■ Optimizing IT Strategy (32%): Organizing, managing, and rationalizing technology strategy inside the organization

■ Sustainable IT (32%): Impacting environmental sustainability through technology and data

Trailing Their Competitors or at Serious Risk

■ Risk Management (12%): Mitigation of cyber risks and prevention of cyber incidents and attacks

■ Growth Strategy (10%): Establishing innovation capabilities to drive growth

■ Keeping Current (10%): Staying ahead of emerging technologies and solutions

"The job of a CIO today isn't easy – it's a dynamic, demanding, and critical role that shapes the future of the organization," said John Marcante, CIO-in-Residence, Deloitte US CIO Program. "As technology and corporate strategy become more intertwined, CIOs can be indispensable members of the executive team who can serve as the primary drivers of growth while ensuring efficient, secure, and nimble operations."

In addition to rating their organization's ability to execute against 10 leading CIO priorities, respondents were also asked about the biggest personal barriers they face in their role. The breadth of responses indicates how difficult and expansive the role has become; CIOs aren't facing just one challenge when it comes to developing and executing the strategic direction of technology within their organizations; they're facing many.

The biggest barrier those surveyed cited is measuring, communicating, and demonstrating the value of technology (15%), followed closely by integrating technology across the organization (14%), finding time to stay updated on innovative technologies (13%), and having the needed capacity and resources to deliver technology capabilities (13%).

Methodology: Deloitte conducted an online survey among 211 US-based CIOs and technology leaders from February 9-18, 2024. Participants were screened based on title, company size, company revenue, and responsibility for setting the strategic direction of IT within their organization.

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Ask most IT leaders about their biggest concern with AI and you'll hear the same answer: hallucinations ... Today, however, the conversation has shifted ... As organizations move beyond chatbots and experiments, they are increasingly deploying AI agents that perform multi-step tasks. These systems retrieve documents, query databases, call APIs, generate reports, write code, and make recommendations. The issue is not whether the model can reason. The issue is whether the organization can see, verify, and govern the decisions being made along the way ...

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While organizations want to take control of their telemetry, building telemetry pipelines from scratch can be a very daunting, complicated task, even when leveraging open-source standards like OpenTelemetry. It requires specialized knowledge across distributed systems, data engineering, and security. This fragmented approach across systems causes higher operational costs; it puts a strain on resources and reduces efficiency as teams have to work with different interfaces and processes ...

The Corporate Network Is Fading - Here's What Replaces It

For decades, enterprise networks were designed around a simple assumption: work happened inside the office. Applications lived in centralized data centers, employees connected through internal infrastructure, and security focused on protecting the perimeter that surrounded everything ... But the way organizations operate today bears little resemblance to that environment. Cloud platforms host critical applications, employees connect from homes and airports as often as they do from offices, and partners collaborate through shared systems that exist far beyond corporate walls. In short, the corporate network no longer resembles the environment it was designed to protect ...

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