According to CIO’s recent 2022 State of the CIO Report, many CIOs have received a budget increase this year, with IT spending expected to surpass 2021.
While these budget increases align with previous years, the business priorities driving IT spending are different. With ransomware attacks and other security concerns making headlines, it is no surprise that a desire for increased security is the top priority for most CIOs.
Increasing Operational Efficiency
Increasing operational efficiency is right behind security, as 46 percent of IT leaders point to this as the most significant demand driving technology spending. A key part of operations is migrating from legacy infrastructure to the cloud, as the move enables companies to optimize performance, improve processes, and eliminate data silos.
Automating many repetitive, manual tasks is another way organizations can streamline operations. Data and analytics projects are a prime area of investment—check out this previous APEX of Innovation post to learn how embedded analytics can drive efficiency gains.
Improving the Customer Experience
Data and analytics can also assist with another top IT spending driver—improving customer experiences. Forty-two percent of CIOs say this is the chief objective behind their technology investments.
There are numerous ways in which organizations can unify systems, applications, and processes to obtain a holistic view of customer data—and deliver compelling, connected experiences as a result. This is a topic we’ve examined in detail in prior posts, including this recent one on the role of data science in personalization.
Twenty-four percent of the IT leaders in the CIO survey report that improving profitability is the main goal behind their purchasing decisions. You could argue that many will achieve this through effectively streamlining operations and enhancing the customer experience. However, to really move the needle, CIOs should investigate how they can monetize data to drive innovation, develop new products, and identify new sources of revenue.
Take a look at this recent Frost & Sullivan video to see an example of insight monetization in action.