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2016 State of the CIO

If you haven’t, you should take the time to read this year’s State of the CIO Survey. As always, it’s informative and interesting. This year’s major takeaway is that IT leaders are struggling to find a balance between the need for basic, traditional IT-related tasks (security, efficiency) and digital transformation (driving the business).

While you can read the entire article here, we’d like to share some of the things that stood out the most to us. It’s important to note that the survey focused largely on the differences between three types of CIOs: Strategic, transformational and functional.

The role of the CIO is a complex one – so do they find this role to be rewarding? According to the survey, strategic (71%) and transformational (69%) CIOs find their jobs more rewarding than functional (47%) CIOs.

CIOs Rewarding Job

Source: State of the CIO 2016: It's Complicated

Functional IT leaders are the most frustrated of the three types. They are most likely to feel that the CIO is being sidelined (29%), be viewed by other departments as an obstacle to their mission (40%) and say IT is scapegoated when other departments miss their goals (60%).

Functional IT

Source: State of the CIO 2016: It's Complicated

Over time, the number of transformational CIOs is declining, while functional and business strategist CIOs currently account for the same percentage of CIO archetypes (smaller companies require IT leaders to delegate and take on different roles at times, which is why there may be a rise in functional CIOs).

CIO Archetypes

Source: State of the CIO 2016: It's Complicated

In terms of the focus of CIOs, it’s no surprise that the current trend is a focus on security.

Top Areas of Focus

Source: State of the CIO 2016: It's Complicated

IT is increasingly becoming a more valuable sector of the overall business, responsible for contributing to and executing business strategy. So, how many IT leaders pay attention to business-IT alignment? Just fifty-one percent.

Business IT Alignment

Source: State of the CIO 2016: It's Complicated

With so much talk about business alignment, who does the CIO report to? Forty-six percent report to the CEO!

CEO

Source: State of the CIO 2016: It's Complicated

This chart largely speaks for itself, breaking down the business drivers of IT investments by the type of CIO.

Business Drivers of ITSource: State of the CIO 2016: It's Complicated

In order to fully align with the business, many CIOs are realizing the importance of having strong partnerships with other leaders within the company. However, when IT is considered a business partner, the CIO is more likely to be responsible for approving purchases and making final decisions for marketing. In only 33% of companies does marketing have its own technology budget.

IT budget
Source: State of the CIO 2016: It's Complicated

IT is definitely not an industry that stays stagnant – nor is the role of the CIO. It will be interesting to find out where things stand a year from now, as CIOs continue to push for greater strategic integration with the business. At DCG we’re enabling greater IT/business integration with the Value Visualization Framework. As such, we hope to see a continued path forward in this direction.

Source: State of the CIO 2016: It's Complicated

 

Written by Michael D. Harris at 05:00
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"It's frustrating that there are so many failed software projects when I know from personal experience that it's possible to do so much better - and we can help." 
- Mike Harris, DCG Owner

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