Current challenges of CIOs and CTOs in the digital age

Innovate, manage, and supervise. CIOs and CTOs must overcome more and more obstacles in the digital age. Detect what the challenges are and how your company can overcome there. 

The accelerated evolution of technology is exponentially transforming the way CIOs and CTOs approach their digital transformation strategies. Today, technology is essential for all types of businesses, and due to technological advances, many companies can access unique growth opportunities.

However, success in modernizing a company does not happen on its own. It is achieved by developing a clear technology adoption strategy, in which CIOs and CTOs play a critical role in implementing and carrying out efforts that enable IT to generate value and foster true organizational growth.

In this blog, you will learn what are the most common challenges that CIOs and CTOs must take into account to effectively structure digital strategies in their IT departments.

State of digital transformation in IT departments 

The Information Technology (IT) department is essential to ensure the correct functioning and availability of the information systems, tools, and technologies used in the company.   

 Additionally, by providing access to new advances that benefit the organization, technology can bring greater productivity and profitability to the business. However, digital transformation is a process that requires the correct assessment of costs and risks in each business environment.  

 According to a study by ITWork, 90% of company CEOs agree that IT departments are more involved than ever in the business innovation process. Similarly, Bain & Company’s research suggests that 70% of companies will either increase or maintain their technology budgets in 2023. 

IT solutions now play an increasingly crucial role in business planning, transformation, and new business models. Consequently, technology investments are more relevant than ever for decision-makers looking to adopt effective strategies. Companies must structure their resources, objectives, and capabilities in line with the challenges of digital transformation today. 

Most common challenges for CIOs and CTOs in the management of IT departments 

• Cybersecurity 

The growth of cyber threats continues to be alarming. According to a study, cyberattacks have increased by 600% since the pandemic began and are becoming more sophisticated to go unnoticed. This landscape poses a great challenge for CIOs and CTOs since organizations need to maintain much more rigorous cybersecurity protocols to reduce threats and prepare action routes to avoid greater risks.  

However, implementing security mechanisms alone is not enough. The challenge grows when decision-makers don’t engage safety management with their employees. In fact, according to the World Economic Forum report, it states that 95% of cybersecurity problems are caused by human error.  

Undoubtedly, business leaders must broaden their vision regarding cybersecurity management, and for this, they need to be prepared, updated, and above all involved with security policies in the whole organization. 

• Retaining talent 

The shortage of technological talent is a growing problem for companies looking to advance their digital transformation. However, stopping digital initiatives is not a long-term solution. It is necessary to look for alternatives to overcome the innovation and human capital gap, such as delegating the management of the IT area to a specialized company or resorting to Staffing services that are responsible for search and hiring processes. 

Another option is to train and educate current employees, in addition to implementing labor policies that encourage the retention of talent in the company. Many companies are also providing additional benefits, such as teleworking or flexible working hours, all to attract the most qualified professionals. 

•  High Costs/Inflation 

Macroeconomic effects can have a significant impact on a company’s IT budget, which can frustrate technology leaders looking to maintain ambitious goals with limited budgets. However, Saurabh Mittal, CTO of Piramal Capital & Housing Finance, argues that “technology leaders can make informed decisions by focusing on two main pillars: reducing long-term costs and increasing investments in technology.”

To achieve these goals, technology leaders must constantly seek new resources, models, and processes that increase efficiency and productivity in the use of technological resources while providing better results to the company. In this sense, it is important to consider the adoption of new technologies, such as artificial intelligence, cloud infrastructure, machine learning, among others, that can provide innovative and efficient solutions. In this way, long-term savings can be achieved, and the profitability of the company increased. 

• Cloud Services  

Modern IT infrastructures are vital to the flow of data in digital business, and cloud services are essential to power them. According to a 2022 Statista study, more than 60% of corporate data is stored in the cloud, and this figure is expected to continue to grow thanks to the business agility that cloud environments offer today. 

Implementing a cloud infrastructure remains a challenge for technology executives, as data loss, security breaches, and data migration are critical aspects that must be monitored on a daily basis to ensure the proper functioning of business operations. That’s why it’s essential for these leaders to proactively manage cloud infrastructure, implement robust security measures, perform regular backups, and have a solid migration plan. This way, businesses can ensure the protection of their data, mitigate any potential risks, and take full advantage of the benefits of cloud infrastructure. 

Conclusions 

Technology is a critical factor for business success today. IT departments must be at the forefront of innovations and trends in order to provide effective and timely solutions to business needs. Managing technology infrastructure can be a constant challenge for CIOs and CTOs who must coordinate different tools and resources to maintain productivity in a fast-moving business world.  

Undoubtedly, today we find several challenges that hinder the fulfillment of the objectives and put at risk the efficiency of IT solutions, the success of the management of an IT department then will not depend on seeing technology as another resource, but to achieve better results. In addition, the figure of the technological leader must become more important, fostering a vision of a visionary leader with a sense of innovation, action, and collaboration who is able to implement digital strategies that empower the company in a competitive market.