ERP Insights >> Magazine  >> December - 2015 issue

Gartner CIO Survey Shows Digital Business Means Platform Business

Author : ERP Insights Team
Friday, January 8, 2016

ERP Insights Team

CIOs expect digital revenue to grow from 17 percent in 2015 to 38 percent of total private sector revenue by 2020, according to a Gartner, Inc. survey of 1,075 CIOs in EMEA.

"As digital deepens, it's clear that hardcoded business and operating models won't suffice," said Dave Aron, vice president and Gartner Fellow. "Business executives need to look at their business as a hierarchy of processes, in terms of their business models, delivery mechanisms, talent and leadership. Platform concepts need to penetrate all aspects of a business."

"The digital era requires flexible systems and structures that can swap resources in and out, and change partners based on shifting priorities," added Graham Waller, research Vice President at Gartner. "Digital visionaries harness platforms to create value through connections and interactions, rather than ownership of individual resources. This creates semiporous boundaries between an organization and the resources and components outside its domain."

Bimodal IT Disciplines Lead to Better Digital Performance

As digitally disruptive decade emerges, bimodal IT increases digital performance. Bimodal IT captures the platform characteristic of continuously building and refactoring capabilities for the future. "Delaying bimodal IT is the worst thing a CIO can do," said Mr. Aron.

"Although bimodal IT is becoming a reality, we find that CIOs adopt those bimodal tactics that are most impactful on digital strategy performance, and vice versa," said Mr. Aron. "The survey shows that only 7 percent of EMEA CIOs who are on the bimodal journey are adopting crowdsourcing, which delivers the highest impact, while 79 percent of them are developing multidisciplinary teams, which have less impact."

Shortages of Talent and Money Are Biggest Barriers to Success for EMEA CIOs

Mr. Aron added that talent must also be treated as a platform. In EMEA, 17 percent of the CIOs discussed the difficulty in finding talent stands in the way of achieving their objectives, and 59 percent of CIOs discussed about talent crisis. Seventeen percent said that money was an issue, which is strongly connected to it.

"The talent pool and management practices are not keeping up with the ever-increasing and changing needs of the digital world. It would be madness to think that continuing the same old HRM practices will solve the problem," said Mr. Aron.

EMEA CIOs Are Leading Digital Transformation and Innovation Efforts

Forty-three percent of the CIOs in EMEA indicated about leading a digital transformation, and 33 percent identified themselves as the innovation leaders in their organizations. In EMEA, 69 percent of the CIOs have a strong partnership with their CEOs.

"Not every business is ready to be a platform business, due to differing economic models, but the concept of platform is important to all businesses — public or private sector, large or small, information-intensive or physical-asset-heavy," added Mr. Aron.

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