Move to innovation – McKinsey Survey
A recent McKinsey survey has seen a higher priority given to improving the effectiveness of business processes, over the last two years, with the reduction of IT costs, that stalwart of IT survey’s, dropping. No surprise when the same survey sees 64% respondents seeing their IT budgets increasing.
What was even more interesting to read was the changes on where those budgets were to be spent. There were two significant changes; first they were seeing a reduction of IT infrastructure spending from 27% to 19% of the overall budget, a drop of almost a third, as companies increasingly move to cloud services; second, was the almost doubling of the proportion allocated to innovation, from 11% to 17% of the total IT budget.
Chief Information Officer – Chief Innovation Officer
As the CIOs traditional role of managing IT systems and information, with a heavy emphasis on cost and risk, morphs in to the point man for looking at technology to innovate product and find competitive advantage.
This opens a great advantage to the CIO, if they choose to take it. Transforming the role from the managing of IT Systems and Information with a heavy emphasis on cost and risk, to one of using technology to innovate new products and finding competitive advantage. This, however, is not necessarily the preordained role of the CIO, with the CMO more than willing to take the reallocation of budgets to increase their prominence within the C-suite.