CIO and CXO Study Insights

Study Participation and Leadership Roles

• Over 2,400 participants in the annual CIO study.
• 62% lead enterprise-wide digital transformations.
• 18% lead other corporate functions, primarily COO and CSO roles.
• 10% manage a P&L, responsible for profit and loss.

Introduction of CXO Study

• Complementary to the CIO study.
• Aims to understand how other C-Suite peers perceive CIOs.

Key Insight: Democratizing Digital Delivery

• Democratizing by Design achieves better outcomes.
  • IT departments empower other business units to produce (not just use) technology.
  • Must be done intentionally ("by design").

Critical Outcomes

1. Enhancing customer and citizen experience.
2. Improving operating margins and profit.
3. Generating revenue.

• Budget constraints due to inflation, despite increasing budgets.
• Importance of sharing the funding and responsibilities in digital leadership.

Perceptions of Digital Leadership

• 80% of CXOs see digital leadership as part of their role.
• CXOs admit they are not exerting enough leadership, rate themselves poorly.
• One fifth of CXO teams engage in technology production.

Generative AI and Digital Democratization

• Generative AI naturally supports democratization of digital delivery.
• Identified CIO profiles:
  • Operators (55%): Retain digital delivery within IT.
  • Franchises (12%): Empower CXOs to deliver digital services.
  • Explorers (33%): Transitioning to the franchise model.

Performance Outcomes

• Franchises meet/exceed digital outcomes 63% of the time vs 43% for Operators.

Recommendations

1. Co-lead digital delivery:

   • Encourage joint responsibility with CXO peers.
   • Move beyond traditional collaboration to co-leadership.

2. Co-deliver digital initiatives:

   • Establish business technologists and fusion teams.
   • Modernize foundational platforms for shared development.

3. Co-govern:

   • Agree on governance structures with CXO peers.
   • Embed risk experts and automate controls.

Case Studies and Examples

• Bosch Digital: Emphasizes joint responsibility in digital projects.
• Watercare: Improved customer journey through joint C-suite efforts.
• Banco Popular: Reduced time to market with cross-department collaboration.
• Johnson & Johnson: Developed governance around identified risks.

Final Thoughts

• Highlight the importance of CIO as a franchisor.
• Encourage CIOs to find CXO partners with a franchisee mindset.
• Start small and consider unique organizational needs.
• Historical context: Similar democratization occurred with finance in the 1990s, leading to increased CFO influence.

Conclusion

• CIOs can enhance their influence by fostering faster digital delivery through democratized processes.