1、4 Actions to Ensure Your Tech Investments Pay Digital DividendsCIOAgenda20232 2Four things to do today to reap greater digital dividends tomorrowMore than half of digital initiatives lag CEO/leadership expectationstake too long to completetake too long to realize value52%Gartner research shows that
2、four out of five CEOs are increasing digital technology investments to counter current economic pressures,including inflation,scarce talent and supply constraints.CIOs and other technology executives are tasked with executing digital IT strategy.Despite many in-progress digital initiatives,few are y
3、et delivering the digital dividends that senior leadership expects.The 2023 Gartner CIO and Technology Executive Agenda identifies four actions that CIOs can take to accelerate impact:1.Identify the type of financial impact the CEO wants and prioritize digital initiatives that support it(and pause o
4、r stop others).2.Create a visual metrics hierarchy to communicate the interdependencies across related initiatives.3.Contribute key IT talent to the business to catalyze a fusion team to accelerate prioritized digital initiatives.4.Engage talent from unconventional sources to progress internal,lower
5、 priority projects that have an indirect impact on financials.59%Gartner for Information Technology Executives Follow Us on LinkedIn Become a Client 4 Actions to Ensure Your Tech Investments Pay Digital Dividends31Prioritize digital initiativesImperativeAny of the initiatives shown here can deliver
6、digital dividends,but ask yourself:Will the enterprises digital initiatives support the kind of financial impact the CEO wants?(That desired impact may have changed in response to recent changes in economic conditions.)Are those initiatives delivering dividends in the time frame expected by the CEO?
7、A tighter economy means the enterprise needs to realize benefits even faster.Objectives of Digital Investments Over Past Two YearsPercentage of respondentsImprove Customer/Citizen Experience0%100%50%Grow RevenueIntroduce New Products/ServicesImprove Operational ExcellenceIncrease Employee Productivi
8、tyIncrease Cost-EfficiencyImprove Employee ExperienceBottom-Line ImpactTop-Line Impact53%45%27%22%25%22%14%n=2,200 CIOs and technology executives answering,excluding“not sure”Q.How would you describe the primary objectives of your enterprises(i.e.,your businesss or governments)digital technology inv
9、estments in the last two years?Source:2023 Gartner CIO and Technology Executive SurveyGartner for Information Technology Executives Follow Us on LinkedIn Become a Client 4 Actions to Ensure Your Tech Investments Pay Digital Dividends4Digital initiatives most often lag because of people and organizat
10、ional issues,such as siloed behavior,talent gaps,change resistance and competing priorities.Prioritize your best initiative and allyHow?Listen for signals about what top leaders priorities and concerns are,and then seek a partner in the business who shares your commitment to an initiative that targe
11、ts a top priority.OR Look for a business executive who has the right characteristics to be an effective partner,and then work with them to interpret signals and identify the right initiatives to pursue and challenges to overcome.Find digital allies in the businessActionIdeal Partner Signals Digital-
12、first mindset Hunger for growth over status quo Outcomes over rules The good over the better Market-facing focus over cost-cutting focus Time/effort generosity over“its not my job”CEO,CFO,C-Suite and Board Signals Most-mentioned topics Urgency indicators,commentary Increased risk tolerance Financial
13、 performance targetsMarket Impact ROI estimate Time to value Competitive differentiationDividendsCIOs Should Proritize Initiatives With Strong Executive Signals or With an Ideal PartnerSource:GartnerGartner for Information Technology Executives Follow Us on LinkedIn Become a Client 4 Actions to Ensu
14、re Your Tech Investments Pay Digital Dividends52Create a visual metrics hierarchyAsk your business leaders to characterize improvement.Ask:What are the leading indicators of progress toward our shared goal?For example,if the goal is to improve profit margins through superior customer/constituent exp
15、erience,you might ask the CMO what improvement means.Is it ImperativeMetrics are critical to assess progress and measure benefits.Many individuals lead initiatives that contribute to the desired outcome and each has their own metrics for success.This complicates the financial recognition of business
16、 benefits from an enterprise perspective.For example,the IT organization may define internal operational metrics and struggle to make the connection to how these efforts ultimately affect business performance.The first step is to ask the CFO which financial metrics should be improved by digitalizati
17、on,by how much and in what time frame.CIOs need to demonstrate the interdependencies across digital initiatives that will collectively impact the enterprises financial performance asking,for instance,how indirect operational initiatives support direct initiatives that target market-facing business o
18、utcome metrics.Greater utilization of agency-provided services?Increased sales?Migration of more in-person interactions to digital channels?Gartner for Information Technology Executives Follow Us on LinkedIn Become a Client 4 Actions to Ensure Your Tech Investments Pay Digital Dividends6The top-to-b
19、ottom alignment of technical and business outcome metrics reveals the performance contribution of all participants and initiatives to shared business goals.Metrics farther down are less direct but still roll up to the top-level metric.The hierarchy of initiatives collectively delivers the desired di
20、gital dividend(in this case for banking).Organize metrics around desired outcomesActionMetrics Hierarchy Template Using a Banking ExampleSource:GartnerBelow the LineExampleProfitability of Loan PortfolioNumber of Days to Close a Loan%Unscheduled Outage Online Loan Application%Unscheduled Outage Ente
21、rprisewideAbove the LineMetrics/OutcomesBusinessOutcomesBusiness Outcome-Driven MetricsTechnologyOperational MetricsTechnology Outcome-Driven MetricsGartner for Information Technology Executives Follow Us on LinkedIn Become a Client 4 Actions to Ensure Your Tech Investments Pay Digital Dividends73Co
22、ntribute IT talent to fusion teamsImperativeOnce a high-impact digital initiative is identified,CIOs should contribute talent to the business leader who is focused on that initiative.An effective business-led fusion team aligns subject matter experts,business technologists and IT experts around desi
23、red business outcomes,accelerating time to value.Effective fusion teams often:Move to continuous digital delivery(away from project management)Focus on goals and performance metrics that share risks and rewards Use a matrix management approach to key digital talent(CIO as career manager,business lea
24、der as performance manager)Fusion Teams Combine IT and Business Expertise and Share Goals and AccountabilitySource:GartnerEvolution of Ways of WorkingProject ManagementPoint-in-Time DeliveryInputs,Milestones or TechnologiesProduct ManagementContinuous DeliveryOutcomes,Business Capabilities or Experi
25、encesBusiness RolesProduct OwnerDomain ExpertsTechnical RolesScrum MasterDevelopersTypical Fusion Team(Example)Gartner for Information Technology Executives Follow Us on LinkedIn Become a Client 4 Actions to Ensure Your Tech Investments Pay Digital Dividends8IT members of a business-led fusion team
26、act as the CIOs eyes and ears to better understand capabilities,data and technologies that the business initiative needs.The CIOs platform product manager can incorporate these requirements into the digital platforms they provide to equip other fusion teams,creating a self-sustaining feedback loop t
27、hat catalyzes action.Contributing IT talent to the business-led fusion team also opens the way for reciprocity,such as integrating subject matter experts from the business into an IT-led fusion team.This:Adds business perspective to internally focused initiatives Builds business acumen in IT teams T
28、eaches the business about architectural and security guardrails set by the IT organization to protect the enterpriseCatalyze the fusion team to accelerate digital ActionModel of Collaboration Among Fusion and Digital Platform TeamsSource:GartnerFusion TeamsDigital Platform TeamsDevelopment Platforms
29、Data PlatformsInfrastructure and OperationsSecurityCloud InfrastructureBusiness RolesTechnical RolesGartner for Information Technology Executives Follow Us on LinkedIn Become a Client 4 Actions to Ensure Your Tech Investments Pay Digital Dividends94Find more digital talent for everyday initiativesIm
30、perativeThe competition for digital talent remains fierce,despite economic slowdowns.As fusion teams ramp up their efforts and begin to realize value,CIOs still need digital talent to deliver on lower priority,internal initiatives.Our research suggests there are many untapped sources of talent suita
31、ble for this type of work.For example,only a few organizations regularly tap into students or cooperate with industry competitors to backfill necessary but nondifferentiating business capabilities.Most dont use gig workers either.n=2,203 CIOs and technology executives answeringQ.Which of the followi
32、ng external individuals or organizations provide technology capabilities?Source:2023 Gartner CIO and Technology Executive SurveyStudents/Interns(High School and College)Customers/Clients/ConstituentsGovernment Agencies,NGOs,Nonprofit or Community LeadersIndustry CompetitorsGig WorkersStartupsDigital
33、 Disruptors(e.g.,Amazon,Google)Shared Industry Resources(e.g.,Academia,Industry Research Groups,Industry-Specific Consultants)Using Talent ResourcesNot Using Talent Resources0%100%50%12%19%21%22%23%28%35%36%64%65%72%77%79%78%88%81%Usage of Unconventional Talent Sources to Provide Technology Capabili
34、tiesPercentage of respondentsGartner for Information Technology Executives Follow Us on LinkedIn Become a Client 4 Actions to Ensure Your Tech Investments Pay Digital Dividends10As fusion teams start to deliver on critical digital initiatives,IT leaders can experiment with unconventional talent sour
35、cing to progress everyday digital commitments.Unconventional talent takes extra time,supervision and training and a collaborative and“co-opetition”mindset.Many of these unconventional approaches can be accessed with low to no cost(such as interns).Instead,CIOs can offer experience,exposure,training
36、or pay based on the value of the deliverable.CIOs in organizations with unionized labor will need to actively engage with union leaders.IT leaders can also create new role profiles and work with their HR partners to identify outdated policies that may keep the enterprise from quickly and easily enga
37、ging gig and other workers to create a neurodiverse work environment.Take a chance on unconventional sourcesActionWhat unconventional talent bringsDistinctive thinkingPipeline of future hiresDiversity,equity and inclusionUnconventional talent neednt be costly Gig workers may be paid by the gigs ROI.
38、Startups may be willing to develop things for the enterprise if they can retain the intellectual property.Industry peers and public sector entities may be willing to share digitalized capabilities that are not differentiating and that are configurable to the enterprises needs.Gartner CIO AgendaGartn
39、er CIO Agenda is based on the 2023 Gartner CIO and Technology Executive Survey.Qualified respondents are the most senior IT executives for the overall organization or their part of the organization.Respondents:2,387 CIOs/technology executives81 countriesAll major industriesRepresenting$322 billion i
40、n IT spending114 Actions to Ensure Your Tech Investments Pay Digital DividendsGartner for Information Technology Executives Follow Us on LinkedIn Become a Client 4 Actions to Ensure Your Tech Investments Pay Digital DividendsGartner for Information Technology Executives Follow Us on LinkedIn Become
41、a Client Explore these additional complimentary resources and tools for IT executives:Webinar4 Steps to Accelerate Digital DividendsReframe the way your technology department creates value.Watch NowActionable,objective insightAlready a client?Get access to even more resources in your client portal.L
42、og InResource HubCIO Insights and ToolsDrive stronger performance on your mission-critical priorities.Learn MoreToolIT Score for CIOsBenchmark key functional processes and activities.Download ToolGet StartedToolGartner Digital Execution ScorecardMeasure progress,prioritize initiatives and align the
43、C-suite.124 Actions to Ensure Your Tech Investments Pay Digital DividendsGartner for Information Technology Executives Follow Us on LinkedIn Become a Client What youll get:Gartner insights at your fingertips Streamlined vendor evaluations Collaborative workflow within a structured process Confidence
44、 in selecting the right vendorStreamline your teams path to better tech purchasing decisions fueled by industry-leading Gartner experts and peer insights.Gartner BuySmartConfidently manage the technology life cycle Learn MoreDiscoverEvaluateSelectOptimize13Connect With Us 2022 Gartner,Inc.All rights
45、 reserved.CM_GTS_1938941Get actionable,objective insight to deliver on your mission-critical priorities.Our expert guidance and tools enable faster,smarter decisions and stronger performance.Contact us to become a client:U.S.:844.262.4298International:+44(0)03301 735 683Become a ClientLearn more about Gartner for Information Technology Executives connected to the latest insights
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