Innovating for Growth: IT’s Role in the New Global Economy

Overview

In recent years, the role of IT has been changing - in some cases radically. Rather than being seen merely as a utility, the function is increasingly expected to come up with innovative business improvements.

Post-recession, organisations inhabit a very different global economy and IT has a vital part to play in supporting change and growth.

With competition increasingly being shaped by a number of macroeconomic factors, IT leaders have to understand the dynamics of this "new normal" and work closely with the business to address the challenges.

There is considerable confidence in IT's potential to help organisations respond to marketplace changes. The responses suggest that businesses are looking to their IT departments for innovative strategic and operational solutions. However, almost three-quarters (73pc) feel that IT could take a more active role in innovation.

The CIO could become a key figure in driving business change. In particular, IT is expected to provide essential data management
to help analyse markets and customers and focus on more profitable segments. Respondents also believe IT can help manage future economic and business trends, such as consolidating markets, geographical shifts in economic power and increasing regulation.

Just 15pc of respondents believe the IT function is very well prepared for future demands. Although most of those taking part in the survey acknowledge the potential of IT to help transform the business, there is a feeling that it has yet to fully deliver on this promise.

To better manage stakeholders, IT should improve its understanding of business needs and communicate more effectively. With outsourcing prevalent, around half of those surveyed feel that IT should enhance its skills in managing contractual relationships.

Non-board respondents are concerned about IT's budget planning and control capabilities. And only four in 10 say their organisation measures return on IT investment. However, most of those involved in the survey are confident that their board has a complete picture of all IT expenditure.

Across the survey, CIOs tend to have a higher opinion of their performance than their non-board and C-suite counterparts. This suggests that IT should keep in closer touch with other departments to gauge and improve their standing.