CCO Advisory

The importance of Information Technology and its drivers within the business is rapidly increasing in the face of new business opportunities brought by digitalization and Industry 4.0. The adoption of other technologies such as Big Data, Data Analytics, Social Media, Mobility/Connectivity, and Cloud Computing is leading to the creation of new products and services, as well as business models, processes, and value chains. These developments and changing expectations from businesses are putting pressure on IT departments to rethink their existing operational models and setups.

The CIO team faces a particularly challenging balancing act: On one hand, business units expect IT to quickly and dynamically implement significant innovations as part of the digital transformation, but on the other hand, they also expect the maintenance of existing IT services and systems. These should continue to be offered reliably, securely, and cost-effectively, and serve as a dependable backend for future digital services.

The pressure also stems from exaggerated expectations to create financial and resource leeway for investments and innovations in digitalization through efficiency improvements in legacy operations. Success in this area is anticipated through the standardization and consolidation of the IT landscape, migration to cloud computing models (whether SaaS, PaaS, or IaaS), and the intensification of nearshoring and offshoring.