Top Five CIO Priorities in 2023

As digital transformation continues to shape an ever-changing business landscape, CIOs are tasked with leading their organizations into the future. Therefore, it's essential to have a comprehensive understanding of the top priorities that should be considered moving forward. In this blog post, we'll be taking a deeper dive into a recent InfoTech report to discuss key challenges along with actionable advice on how association CIOs can successfully navigate the rest of 2023. While every association will have a different set of priorities based on its specific scenarios, most IT departments should aspire to drive outcomes that deliver better efficiency while delivering cost savings. Let’s find out how! 

Priority One: adjust IT operations to manage inflation 

While some IT budgets have increased in 2023, it may not be enough to keep up with the pace of inflation. Furthermore, CIOs appear to be more optimistic about the budget than their supervisors. However, they should take into consideration how inflation has projected spending power over the last year along with projected inflation rates over the next few years. The fact that inflation rates have been between 2-3% over the past decade suggests that higher projected rates will impact budgets more than in the past. 

Opportunities 

• Appoint a “cloud economist” 

As more and more associations switch from expensive on-premises data centers to infrastructure as a service, they are now presented with new challenges; namely needing to manage the ongoing monthly bills. Though it may initially appear simpler than managing one's own server racks, getting cloud usage in line with financial goals can be difficult without close monitoring or expertise - leading many companies to turn towards hiring "Cloud Economists" whose primary purpose is ensuring costs stay down while performance remains high. 

• Partner with technology providers 

Leverage is key to any successful relationship, especially with your strategic vendors. Seek out ways to boost each other's reputation and create mutual benefits for both parties. Establishing a long-term contract at attractive terms can be made easier when you offer something in return - like having the vendor listed on your website or attending one of their customer sessions as a speaker. By forging strong ties with these partners, you're able to enjoy greater stability as well as a competitive edge in an ever-changing market landscape. 

• Demonstrate IT Projects to improve efficiency 

By operating at the highest level of maturity, an IT department can really make a difference in their association- from reducing costs to generating revenue. CIOs should be equipped with strategies for demonstrating that IT initiatives drive automation and improvement of business activities while also delivering tangible results like better customer experiences or new sources of income. To ensure success, it helps to have allies who recognize how important these contributions are. 

Risks 

• Rising asset costs 

CIOs are looking for ways to save on IT equipment costs as they face inflation, squeezing semiconductor supply chains, and the need to accommodate hybrid work models. Additionally, operating expenses may also be subject to rising prices stemming from overall economic pressures - adding further strain on association budgets. 

Action Items 

• Improve cost and budget management 

Gain clear insight and budget confidence over your cloud infrastructure usage. Establish effective financial oversight to ensure operational costs remain within expectations, allowing you to continually optimize the use of IaaS services for maximum cost efficiency. 

• Improve business value 

Reduce the funds that are allocated to ongoing support and enforce stricter governance around change requests. This will free up resources for progressive new plans aimed at advancing the business objectives. 

• Improve vendor management 

To create a lasting relationship with your vendors that works to everyone's benefit, establish an effective vendor management process. Become more than just another buyer in the eyes of strategic partners - position yourself as someone who offers something valuable and use this leverage for better contract terms! 

Priority Two: prepare your data pipeline to train AI 

Last year, artificial intelligence-generated products took the world by storm. While many AI capabilities seem cutting-edge now, many are prioritizing it as a technology investment. In fact, a little over one-third of IT professionals say that their organization has already invested in AI or machine learning. Within a few years, using AI-generated content will be easier than ever with the availability of accessible software and tools that are able to integrate into existing workflows. To stay ahead, companies may want to consider offering custom models created through their own unique data collections.  

As this capability becomes more common, data collection and analysis will be on the minds of CIOs as well as their supervisors. Despite knowing data quality is essential for successful analytics, IT departments are facing difficulties in achieving clean datasets. It's also important for associations to recognize and consider the potential implications for compliance and ethics. A significant challenge to overcome is a lack of understanding when it comes to data governance - not only are users increasingly wary of how their data may be used without consent, but legislators across multiple jurisdictions have started creating new regulations surrounding Artificial Intelligence technology as well. Staying on top of these emerging trends can help businesses ensure continued success while also staying compliant with an ever-changing landscape. 

Opportunities 

• Enterprise content discovery 

With the potential of generative AI chatbot technology, associations can now make their knowledgebases more useful than ever before. By training a chatbot to understand an association's content and anticipate employee needs, it can quickly provide answers or direct individuals towards resources they need - eliminating time wasted on manual searches through corporate drives such as SharePoint. 

• Supply chain forecasts 

Walmart used Artificial Intelligence (AI) to battle the disruptions caused by Hurricane Ian. Through simulations, they were able to quickly analyze its effect on their supply chain and adjust accordingly - something that would have taken days if done manually. In a matter of hours, AI was able to provide what turned out to be an accurate representation of how post-storm demand for goods and services should be managed (The Economist, 2022). 

• Reduce the costs of AI projects 

AI models with a larger scale are gaining traction in the world of enterprise, thanks to their versatile capabilities. For example, ChatGPT can craft not just poetry and dialogue for plays but also sections of research reports! One researcher has estimated that such generative models can reduce costs per project by an impressive 20-30% (The Economist, 2022). Now more than ever is the time for businesses and associations to take advantage of these groundbreaking advancements. 

Risks 

• Impending AI regulation 

A global wave of new legislation is forcing organizations that use AI to take a more thoughtful approach.  With AI becoming more advanced, creators are increasingly concerned about how their content will be used to train new algorithms. Efforts have already begun for artists and writers to opt out of having their work utilized in this way. Associations that implement generative AI need to be prepared for issues that may arise down the line as copyright laws adapt to expanding technological advances. 

• Bias in the algorithms 

IT leaders should be aware of the potential bias inherent in AI models trained by third parties. In one case, MIT Technology Review journalist Melissa Heikkilä found her Asian heritage had an excessive impact when using Lensa's avatar-creation app - instead of realistic portraits, she was presented with sexualized images reminiscent of video game characters and anime art. Although intentional discrimination is never acceptable, it can occur even unintentionally if precautions are not taken (MIT Technology Review, 2022). 

• Convincing nonsense 

AI bots are increasingly able to give convincing responses, however, human evaluation is still important. A recent example of this was Meta's Galactica Bot – a tool intended for scientific research and text generation – which only lasted three days before being removed due to its ability to produce misleading or inaccurate results (Spiceworks, 2022). This is further proof of the importance of carefully reviewing AI-generated content. 

Action Items 

• Improve data quality 

To get the most out of AI-assisted tools, it's essential to ensure your IT operations are running like a well-oiled machine. Streamline service management processes and populate an information bank with relevant content for optimal performance from your AI solutions. 

• Improve data architecture 

Are you ready to explore the world of AI? Consider your association’s preparedness in terms of personnel, technology, and operations. If implemented correctly with a focus on data accuracy, model development & deployment as well as management of these models during operation - AI can be brought into everyday use for any business purpose. 

• Improve business intelligence and reporting 

Enter the world of enterprise chatbots to revolutionize both your customer and employee interactions. These innovative bots are designed to provide instant access to resources, data, and other essential tools for optimal performance - all in real-time. 

Priority Three: go all in on zero-trust security 

In recent years, the rising need for a zero-trust security framework has transformed the way organizations approach their digital defenses. Shifting workspaces from the office to home during the pandemic exposed us to an expanded network landscape, requiring robust security beyond the confines of a firewall. Additionally, high-profile supply chain attacks have left thousands of businesses scrambling to up their security game, making the zero-trust strategy both timely and essential. Also, a major shift in cybersecurity is expected as President Biden's 2021 Executive Order pushes federal agencies toward a zero-trust approach. While this is expected to impact companies working with the government, a ripple effect may extend to other organizations, positively shaping the future of personal data privacy and compliance.  

Embracing a zero-trust mindset in terms of cybersecurity means integrating it into your broader risk management strategy. For many, the fear is that ramping up security might create hurdles for employees. However, with a zero-trust approach centered on identity verification, you can strike the perfect balance between security and user experience. 

Opportunities  

• Move to identify-driven access control 

Currently, accessing network control means allowing every device to exchange data with every other device with user endpoints and servers talking to each other directly without any central governance. In a zero-trust environment, a centralized zero-trust network access broker provides one-to-one connectivity, allowing servers to rest offline until needed by a user with the right access permissions. This means that users must verify their identity more often as they move throughout the network while accessing the resources and data they need with minimal friction and protecting servers from unauthorized access. When an authorized identity has been compromised, log files are generated for analysis to raise alerts. 

• Protect data with just-in-time authentication 

Organizations have been striving to encrypt their data at rest, but there's a twist: when users transfer this data to their personal devices, it's no longer encrypted, making it vulnerable to cyber-attacks. However, by establishing a zero-trust environment where a broker keeps control over data access, encryption is preserved. That’s because parties accessing a document must exchange keys to gain access, locking out unauthorized users that don't have both sets of keys to decrypt the data (MIT Lincoln Laboratory, 2022). 

• Harness free and open-source tools to deploy zero trust 

While there may not be a large budget to invest in new security measures, there are many free and open-source tools available.  

Risks 

• Organizational culture change to accommodate zero trust 

Implementing zero-trust security means that top decision-makers must be involved in your association’s cybersecurity. This includes treating it as an equal consideration in the overall enterprise risk. The fact of the matter is that not all boards will possess the cybersecurity expertise required. Some executives may not prioritize cybersecurity at all despite warnings. Associations that choose not to appoint a chief information security officer (CISO) role to help drive the cybersecurity agenda from the top will be at risk of cybersecurity remaining an afterthought. 

• Talent Shortage 

In today's digital landscape, cybersecurity is an absolute must, regardless of your field or organization. With an ever-growing demand for skilled professionals, businesses are struggling to secure top-notch talent. Yet, without the know-how to implement a zero-trust approach, the focus remains on addressing essentials like patch management and intrusion prevention. Smaller associations, fret not - a part-time "virtual CISO" could be your key to a robust, tailored cybersecurity strategy. 

• Social engineering 

Unfortunately, many associations’ digital safety is venerable to an attack via an employee’s identity. Single sign-on models provide low friction and continuity of identity across applications but also offer a single point of failure that hackers can exploit, leading to an infiltration of the network. Phishing scams that are designed to trick an employee into providing their credentials to a fake website or to just click on a link that delivers a malware payload are the most common inroads that criminals take into the corporate network.  A security awareness training program for staff to learn how user behavior influences security. 

Action Items 

• Improve asset management 

Experience seamless freedom in remote work with a solid foundation of hardware asset management. Keep track of your gadgets effortlessly and ensure compliance, robust policy reinforcement, and minimal damage when devices go missing. 

• Improve stakeholder relations 

Migrate from perimeter-based security into the innovative world of "Always Verify". You can start by providing a clear roadmap designed to lead your association towards a zero-trust security system and ensuring that your strategy aligns with your ultimate business goals. This may be the first step in helping top leadership build awareness of cybersecurity risk. 

• Priority Four: engage employees in the digital age 

The pandemic sparked a groundbreaking transformation when it comes to employer-employee dynamics, ushering in a hybrid work era where employees juggle between in-office and remote work. IT teams now face the responsibility of adapting to this change while simultaneously smoothing the transition for the entire organization. In an ever-evolving workforce, 90% of organizations are embracing hybrid work in some way. By leaning into a flexible balance of remote and in-office work, tech-savvy teams are reaching their full potential and improving productivity. In fact, organizations offering no remote work option for their IT departments rated IT effectiveness 6.2 out of 10, while organizations that offered at least 10% of hybrid roles rated saw significantly higher effectiveness. It’s important to note that this increase in effectiveness happened during a disruptive time in the IT world. Transitioning to remote work required IT to support more users along with facilitating more work processes. 

The world of IT successfully embraced hybrid work, but CIOs are feeling pressure when it comes to staff sufficiency, skill, and engagement. Surprisingly, they're more concerned about these issues than their executive counterparts. Research shows that 49% of CIOs see this as a major challenge compared to only 32% of fellow executives. IT professionals are indeed shouldering more responsibilities in today's digital landscape, but CIOs remain committed to boosting employee engagement. An in-depth look at Info-Tech's State of Hybrid Work Survey sheds light on specific concerns among IT leaders. For instance, approximately 40% are worried about employee well-being, while a similar percentage struggles with identifying demotivated staff members. With these insights in hand, it's clear that CIOs are committed to nurturing a supportive and efficient IT work environment. IT leaders will have to utilize all the tools at their disposal to boost their employees' engagement levels to match their effectiveness.  

Opportunities 

• Drive effectiveness with a hybrid environment 

In the rapidly evolving world of hybrid work, IT leaders must find ways to preserve their team's culture and connectedness. The key will be amping up communication. High-achieving IT departments often have leaders who are easily accessible via instant messaging in addition to an increase in team meetings. The greater number of tactics used to break down communication barriers, the greater the success of your IT department.  

• Modernize the office conference room 

Not only does a hybrid work approach emphasize the importance of office technology, but also the process around how meetings are conducted. The priority should be to create an equal footing for all participants regardless of how they join. To reach this goal, 63% of organizations say they have made changes or upgrades to their conference room technology. A great conference experience can influence employee engagement and work culture while also enhancing collaboration. IT should determine if the business case exists for upgrades and work to decrease the pain of using legacy solutions where possible. 

• Understand the organizational value chain 

Discover the exciting world of value chains through the eyes of your customers. By exploring their perspective, you'll uncover the key components of your association’s capabilities in delivering an exceptional experience. This useful tool helps IT staff understand how they're connected to the customer experience and organizational mission and is crucial to identifying opportunities to resolve pain points and create more efficiency throughout. 

Risks 

• Talent rejects the working model 

As the world embraces the hybrid work model, employees are reaping the benefits of a better work/life balance and have little desire for a full-time office comeback. Companies that stubbornly enforce a return to the office might face an exodus of talent or struggle to secure skilled IT professionals in a cutthroat market. To stay competitive, businesses are adapting to the digital era by offering flexible work arrangements and exploring creative strategies for managing this new-age workforce. 

• Wasted expense on facilities 

For some associations, it’s becoming obvious that keeping their physical locations may be useless as no one is showing up to work. It’s true that providing an office space can help enforce positive culture via face-to-face interaction, but it should be used thoughtfully. Managers may want to consider planning specific days for their teams to meet in the office and make sure that work activities take advantage of everyone being in the same place at the same time. Asking everyone to come in so that they can be on a videoconference meeting in their cubicle isn't the point. 

• Isolated employees and teams 

Remote work has revolutionized the way we collaborate, but it's not without its caveats. Research reveals that while employees continue to gel within their teams, cross-department interactions suffer a dip. Despite collaborating as frequently as their office-bound peers, remote workers engage with a smaller pool of colleagues. So, as we embrace this new work paradigm, it's crucial to prioritize creating networking opportunities that connect employees across departments. 

Action Items 

• Improve leadership, culture, and values 

Focus on ways that you can more effectively manage teams in a hybrid environment by providing the best tools and tactics to manage the challenges of hybrid work. Make promoting teamwork and fostering connections a priority.  

• Improve organizational change management 

Embrace the digital revolution by boldly assigning responsibility for steering your association through the ever-evolving digital landscape. Adopt a people-first strategy, considering the unique behaviors and needs of each individual, and dare to be proactive in navigating change. 

• Improve enterprise architecture 

Discover the secret to harmonizing IT and business goals with a tailor-made enterprise architecture strategy that cuts through red tape. Highlight IT's purpose by showcasing its vital role in the overall mission as well as elevating the customer experience. 

Priority Five: shape the IT organization to improve customer experience 

During the pandemic, organizations turbocharged their digital transformation, focusing on streamlining their tasks and enhancing customer satisfaction. Now, they're shifting gears to maximize the benefits of their digital investments, aiming to bring their ambitious vision to life in their everyday operations. 

A recent trends report uncovered some fascinating insights about how organizations are approaching digitalization compared to the previous year. Overall, most organizations shifted fewer of their processes to digital in the past year. The motivations driving organizations towards automation are intriguing too. A whopping 70% are eager to sharpen their efficiency by automating mundane tasks and allocating more staff to high-level operations. Meanwhile, 67% crave ramped-up productivity without hiring additional workers, and 59% have their sights set on reducing human errors. The cherry on top? Over half of them are on a mission to ramp up customer satisfaction through the power of automation.  

In today's fast-paced digital world, IT departments are struggling to break free from outdated processes that prevent them from delivering true value to the business. CIOs are in a tough spot, trying to balance the demands of innovation and staying agile amidst modern business structures. As frustration brews among 90% of CIOs dealing with these pain points, the bosses above them aren't feeling too peachy about it either, with 76-81% expressing their displeasure.  

A staggering 90% of CIOs feel constrained by IT limitations that inhibit innovation and flexibility in their businesses. The data in the Executive Alignment Assessment shows that This sentiment is echoed by 81% of their supervisors who prioritize "ensuring benefits delivery" as the top process. To overcome these challenges, a focus on alignment, optimized service delivery, and fostering innovation is essential. With the upcoming pressures of a competitive labor market and economic fluctuations, a strong CEO-CIO bond is crucial to thrive and maintain resource capacity. 

Opportunities 

• Define IT’s value by its contributions to enterprise value 

By connecting IT initiatives with positive business outcomes, you can showcase the powerful impact IT has on your bottom line. Imagine a digital channel that skyrockets sales, or an IT optimization that results in impressive cost savings. CIOs should develop their handle on how KPIs influence revenues and costs. Keeping tabs on normalized year-over-year revenue comparisons can help demonstrate that IT contributions are making an impact on driving profitability. 

• Go with buy versus build if it’s a commodity service 

The fact of the matter is that most back-office functions can be provided by cloud-based applications accessed via a web browser. Having IT spend time maintaining on-premises applications that require hosting and ongoing maintenance is unnecessary and a waste of time. Companies that prove unable to modernize and are still accruing technical debt will discover that it has a direct negative impact on employee experience. This is because users expect their working experience to be like their experience with consumer applications. In addition, IT will continue to have capacity challenges as resources will be consumed by maintenance. As they seek to outsource some applications, IT will need to consider the geopolitical risk of certain jurisdictions in selecting a provider. 

• Redefine how employee performance is tracked 

It's time to ditch the old-school "clocking in" mentality and embrace a culture of true accountability. As leaders, let's rally together to pinpoint the key performance indicators that define our path to success. By aligning these metrics with tangible business outcomes, IT professionals will become key players in delivering exceptionable customer experiences. 

Risks 

• Lack of talent available to drive transformation 

As the digital demands of associations skyrocket, organizations are struggling to recruit top-notch IT talent, potentially slowing down the pace of innovation. To overcome this roadblock, associations may want to consider retraining existing employees and nimbly redistributing workloads while also tapping into the power of outsourcing providers to bridge the gap. 

• Resistance to change 

Associations may have adopted new processes, but that doesn't necessarily mean they're being put into practice. To ensure consistency in their operations, management should audit the procedures regularly to confirm successful implementation and motivation of staff. If an employee feels threatened by these changes or like their role is no longer required, it can lead to decreased engagement - so employers must stay focused on keeping everyone involved during reorganization initiatives. 

• Short-term increased costs 

Embracing organizational change might call for mastering new tools and leveling up your squad's skills. Be prepared to double up on staff during the transition, and don't be surprised if there's a short-term uptick in expenses. Trust the process - a modernized structure is on its way. 

Action Items 

• Improve enterprise application selection & implementation 

Empower leaders to master the art of hybrid team management by equipping them with cutting-edge tools and strategies. Work to unite and strengthen your teams, bridging the gap in this new era of work. 

• Improve performance measurement   

Defining business value and linking IT spending to it. This will drive the most important IT process in the eyes of supervisors. Make benefits realization part of your IT governance. 

• Improve IT organizational design  

Discover the true potential of your IT department by synchronizing spending and personnel with your core business operations. Gain insight into IT usage within your business and benchmark your investments against others in the industry. 

Wrapping IT Up 

Join fellow associations in diving into the digital revolution by steering towards an IT transformation. By embracing the challenges and unavoidable changes that come with a constantly evolving business world, you’ll uncover and tackle the priorities necessary to take your IT department to the next level. Ready to unlock your true potential? Start with optimizing your IT policy by downloading our Ultimate IT Policy List for Associations today.