Top CIO Challenges

Lack of business objectives tops list of CIO challenges according to our recent survey.

3/4 of CIOs do not view themselves as strategic, according to an Atos Origin survey.

Nearly two thirds of UK CIOs have reported they do not have clear or realistic business objectives, according to a survey by Atos Origin, an international IT services company. Moreover, the majority (76%) of those surveyed do not consider themselves a strategic influencer within the business.

The survey of UK CIOs and senior IT decision-makers, conducted in April 2007 across 125 organisations, indicated that while some CIOs have made progress by increasing their influence within the business, many still struggle to balance the role of managing the IT infrastructure with the demands of business strategy. In fact, over half (56%) described themselves as a ‘manager of IT and of outsourced IT suppliers’, more than double those that consider themselves a ‘strategic influencer within the business’ (26%).

CIO Challenges
When asked what the barriers to their success were, UK CIOs cited the following top five issues:

  1. Unrealistic/unclear business objectives (61%)
  2. Legacy systems (48%)
  3. Lack of budget (48%)
  4. Lack of business involvement and interest (42%)
  5. IT staff skills shortages (25%)

Besides a lack of clear business objectives, the results indicate that CIOs are still struggling with the level of investment in IT: nearly half stated that a lack of budget is a key barrier, and the same number struggle to work with legacy IT systems.

When asked what would help them do their job more effectively, 59% of CIOs highlighted the need for an ‘increased interest and involvement of the business in IT strategy and planning’; 54% required more IT budget; and 41% a ‘better understanding of business drivers’ (41%).

Conflicting demands
According to Atos Origin, the survey results indicate that UK CIOs continue to face a struggle to manage multiple demands from the business and from external suppliers to manage budgets, encourage innovation and support the business.

John Stevenson, chief operating officer, Atos Origin said:
“Many CIOs find their time is preoccupied with managing multiple IT suppliers and relationships, without the appropriate internal infrastructure and governance, leaving them little time to focus on developing their role within the business. This often impacts the ability of the IT department to provide innovative solutions that enable the company to be more agile and, ultimately, increase their business advantage.”

In an environment of globalisation and intense competition from overseas, UK CIOs need to be able to deliver flexible IT solutions that will enable their businesses to compete in an international market place.

According to the survey, 92% of CIOs surveyed encourage innovation, but only 13% formally measure the return on investment it provides.

Partnership with external suppliers
Despite spending large amounts of time managing external suppliers, only 38% of CIOs surveyed involve their external IT suppliers in innovation, compared to 49% who involve external IT suppliers in IT governance.

According to John Stevenson the overriding message from the survey results is that greater partnership between IT and the business is still required:

“It is clear that CIOs are fighting to gain the support and direction from the business that they need. External suppliers can support this, by taking on a partner role rather than that of a traditional IT supplier, enabling CIOs to focus on business-drivers and IT agility.”

About the survey
The research, undertaken in April 2007 by Vanson Bourne on behalf of Atos Origin, was based on a survey of 125 CIOs and senior IT decision-makers in organisations with more than 1,000 employees the UK, across a variety of sectors.

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