It is imperative to prioritize cybersecurity and foster a culture of security awareness among employees to effectively mitigate risks and protect sensitive data.
Predicting the future is always challenging, wouldn't you agree? Particularly in the area of technology, the uncertainty of what lies ahead is profound. With the rapid advancement of technology, it's no longer surprising to envision a future where a vast number of devices are interconnected, employees utilize the metaverse for collaborative work and meetings, AI-powered tools play a crucial role in customer interactions, process optimization, and remote monitoring.
Furthermore, robots are deployed throughout offices, automating the tasks previously performed by human professionals. The landscape of business is poised to become increasingly exciting and different, but it will also present new challenges. As the competition intensifies and abundant data becomes available, CIOs will need to discern the most effective strategies for preparing and managing their organizations in this new era of enterprise. Cloud computing, data analytics, and AI have made a significant impact on diverse industries and businesses.
However, organizations face the challenge of managing hybrid workforces, controlling costs, and enhancing service quality and delivery, all while navigating complex security threats. It's a demanding task that requires careful attention and strategic planning.
Within this landscape of progress, intriguing questions arise: How will these powerful technologies shape the very essence of business? How can today's visionary CIOs prepare themselves to leverage the winds of transformation, ushering in a new era of growth and fostering a culture of boundless innovation within their enterprises? And, above all, what ingredients are required to unleash the full potential of AI, cloud computing, and data-driven insights, thus propelling the future of enterprise transformation into uncharted territories of possibility?
The importance of IT-business alignment
For most CIOs and enterprise leaders, bridging the gap between IT and business objectives has become a top priority. But simply aligning these two aspects is not enough. To achieve meaningful growth, businesses must recognize the importance of cultural transformation within their organization. This means prioritizing key areas that form the foundation for success.
According to industry experts, organizations need to prioritize collaboration between their leaders and technology heads. This means giving technology leaders prominent roles and valuing their insights in board meetings. It's crucial to recognize the vital role technology plays in maintaining competitiveness and driving innovation and transformation.
UC Singh, Chief Information Officer at CEAT Limited, emphasizes the importance of aligning technology with business objectives. By doing so, CIOs can utilize technology to drive success and overcome challenges. Singh also highlights the significance of embracing technology investment and experimentation. Additionally, CEOs and management should establish provisions for conducting experiments when implementing new technologies and be open to the possibility of failure. Even if only a few initiatives succeed, they can yield significant benefits.
"In my company, we have implemented specific measures for conducting experiments. While it's possible that four out of six or seven experiments may fail, achieving at least two successful ones can provide a definite return on investment (ROI). This is how we are making significant progress. Our main objective is to reduce the total cost of ownership (TCO) for any IT or digital initiative. As long as there is a practical application and we can demonstrate its value to the business, the business is eager to embrace it," adds Singh.
From a cultural standpoint, a deep understanding should be there of why modernizing infrastructure is critical for the organization. The alignment will ensure an effective overhaul of outdated systems and deploying cutting-edge innovations with a focused goal.
According to a McKinsey study, "Tech at the edge trends reshaping the future of IT and business," companies must incentivize and enable engineers to build and engage with networks. Empowering teams to allocate budgets flexibly is crucial, allowing room for experimentation and learning from failures within certain boundaries. It's also important to grant autonomy in choosing technologies that align with goals while adhering to guidelines.
Manish Kishore, CIO of Wockhardt, shares this viewpoint, highlighting the transformative impact of technology on the business landscape. Kishore envisions a new era where technology assumes a prominent role, with business value as the driving force and technology adoption as the natural outcome. The ongoing paradigm shift in technology will bring about a profound transformation across all aspects of business, ushering in a standardized and automated approach. Even seemingly straightforward decisions like whether to adopt a public cloud or a private cloud require careful consideration and discussion among the board and CIOs. The pursuit of IT-business alignment sets the stage for an exciting future where innovation and success become intertwined, driving organizations toward new heights.
Readiness to shift toward technology-based management
Experts predict a transformative shift in business operations as reliance on human intervention gives way to the adoption of AI and machine learning (ML) for process automation. The goal is to deliver exceptional user experiences surpassing traditional methods. Advanced AI systems have revolutionized various aspects of business, from demand forecasting and autonomous operations to customer query handling and content generation.
One remarkable example of this transformation is the rise of chatbots, voice assistants, and virtual assistants. These groundbreaking innovations enable organizations to establish seamless interactions with customers. Forward-thinking businesses are integrating advanced AI capabilities into their chatbots, empowering them to address customer concerns, handle complex inquiries, and provide sophisticated responses. ChatGPT is a prime example, serving as a virtual assistant for scholars, researchers, communications teams, and news agencies.
Furthermore, the integration of digital solutions and analytics in supply chain management showcases the paradigm shift. Manufacturers leverage AI-enabled tools and insights to accurately forecast and anticipate disruptions, proactively mitigating risks and ensuring the uninterrupted flow of essential goods. This synergy between technology and analytics drives efficiency and resilience in supply chain operations. However, embarking on this transformative journey does not come without challenges. Organizations must be prepared to deftly navigate the intricacies and demands that come with managing technology-intensive operations. It necessitates a strategic approach, meticulous planning, and substantial investments in resources and expertise to fully unlock the myriad benefits offered by these emerging technologies.
Central to this strategy is the critical need for a robust data strategy. Without a strong data strategy in place, the true potential of AI and ML remains untapped. As businesses forge ahead, it is imperative to identify the appropriate data sources, implement efficient data collection and organization practices, uphold data quality and integrity, and establish robust data governance frameworks. A well-defined data strategy serves as the bedrock for harnessing the power of AI and cloud technologies, enabling the extraction of valuable insights and facilitating informed decision-making. By embracing a fail-fast strategy, organizations can experiment and iterate rapidly, fostering a culture of innovation and adapting swiftly to the evolving digital landscape. With a solid data strategy as a guide, businesses can confidently navigate the complexities of the digital age, propelling themselves toward success and staying ahead of the competition.
As L B Sharma, General Manager of Information Technology at Bharat Petroleum Corporation Limited, points out, the fast pace of technological advancements demands adaptability and an embrace of the "fail fast" mentality. This can be particularly challenging for well-established organizations accustomed to stability. Additionally, while cloud technologies have been around for some time, they require further stabilization to align with the established IT operations models of organizations that maintain their own data centers and IT infrastructure. Security also poses a significant challenge. The ever-evolving landscape of IT security brings forth new threats and vulnerabilities regularly, making the task of managing IT security an ongoing and complex endeavor with seemingly boundless risks.
Addressing these challenges will demand the dedicated efforts of the IT management team. Navigating the uncharted waters of technology-based management requires a forward-thinking mindset, an ability to adapt quickly, and a strong focus on robust security measures.
According to industry experts, in the new future, new technologies will have a significant impact on both the development and consumption of business applications. On the development side, there will be a fundamental change in how business applications are created. There will be a greater focus on faster time-to-market, writing secure and lightweight code, and facilitating easy deployment, maintenance, and decommissioning of applications.
“This is where technologies like low-code and no-code platforms will play a crucial role. They will accelerate the speed at which business applications are created and deployed while ensuring their maintainability. On the consumption side, these technologies will also bring about a fundamental shift. They will transform the way applications are consumed by users. Rather than just being available across multiple channels (Omni Channel), the focus will be on embedding technology into every aspect of the consumer's interaction,” believes Dhaval Vinod Pandya, Corporate Chief Information Officer, Piramal Enterprises.
It's no longer solely about being available; it's about being technology-oriented and Omni Channel. The way consumers interact with businesses, how they consume products and services, and how they provide feedback and communicate about them will all undergo significant changes. These changes are made possible by the new technology backbone that is emerging.
Developing new-age skillsets
The core of digitization lies in driving business growth through increased revenue and reduced costs. To achieve this goal, enterprises have to embrace digitization and artificial intelligence (AI) as they continue to advance. “AI is poised to revolutionize businesses, particularly in the healthcare industry. It will fundamentally change the way we operate by facilitating accurate and faster reporting, benefiting doctors and patients alike. In the healthcare sector, there are various other objectives that AI can assist with, making a significant difference in how business is conducted,” says G Radhakrishna Pillai, CIO, SRL Ltd.
In a matter of mere weeks, generative AI tools like ChatGPT, once obscure, have captured widespread attention and sparked extensive discussions. With AI at the forefront, the significance of data, particularly historical data, is amplified, underscoring the importance of robust data security measures as digitization continues to advance. Furthermore, there is a significant emphasis on demand forecasting tools that rely on the ability to extract insights from diverse data sources throughout the supply chain. However, it is crucial to recognize that possessing the necessary skillsets to effectively leverage these tools will be the critical factor in unlocking their full potential.
According to Sachin Gupta, President & Chief Information & Innovation Officer at Usha International, to fully leverage the potential of digitization, investing in data science and data scientists is crucial. Their expertise enables the implementation of AI and unlocks valuable insights that drive business growth. While the potential of data is immense, there is still much to explore in terms of its optimal utilization. Although it is too early to draw definitive conclusions, the initial results and possibilities are promising.
He said,” To fully leverage the potential of digitization, investing in data science and data scientists is crucial. Their expertise enables the implementation of AI and unlocks valuable insights that drive business growth.”
When it comes to tools like ChatGPT and data ownership, having the necessary data can be advantageous for leveraging the intelligence of AI. However, it is important to note that ChatGPT is not a free service and comes with associated charges. Furthermore, if tools like ChatGPT offer datasets from various industries or sectors, utilizing those datasets can provide additional valuable insights to enhance one's own capabilities.
Building and expanding trust
Businesses and their CIOs face a continuous challenge to ensure the trustworthiness of their operations due to the massive amount of data generated internally by employees and externally by customers. This concern is amplified by the growing awareness among customers about their rights to protect their information from misuse, leading governments worldwide to enforce various data governance laws. In order to thrive in this increasingly complex environment, businesses must prepare themselves for the future.
Enterprises need to establish strong and proactive measures to address the evolving threat landscape. Unfortunately, malicious actors are constantly finding new ways to manipulate ethical algorithms and poison the algorithms, which can lead to corrupted outputs. While technological advancements have improved both cybersecurity protection and attack tools, the overall threat landscape remains persistent. Malicious actors continuously adapt their infiltration techniques, while protection mechanisms have become more robust with the assistance of AI. Achieving the right balance between offense and defense is challenging, and there will always be cases where certain security measures are more advanced than others. This trend is expected to continue, with new methods of exploiting vulnerabilities emerging regularly.
However, board-level executives are increasingly aware of the security risks and the potential for disruptions. There is a growing focus on implementing robust protection measures, establishing clear data strategies, and having efficient backup systems in place. This preparedness ensures that any disruptions or downtime can be minimized, safeguarding business performance. As long as organizations continue to prioritize security and invest in appropriate measures, they can effectively mitigate risks and adapt to evolving threats in the digital landscape, as stated by Sachin Gupta. This preparedness ensures that any disruptions or downtime can be minimized, safeguarding business performance.
In his article, Tech at the edge: Trends reshaping the Future of IT and Business, Steve Van Kuiken, Senior Partner Emeritus at McKinsey & Company, emphasizes the importance of putting identity and trust management at the core of customer experience and business processes. He advocates dedicated leadership, board-level prioritization, and enterprise-wide responsibility across the entire trust and security landscape. IT plays a key role in monitoring and remediating security issues, assessing the impact of new legislation on AI algorithms, tracking incidents, and monitoring consumer trust levels.
While technology can provide some level of protection, it has its limitations. The role of individuals within the organization is crucial in ensuring data security. They must be educated and empowered to understand the significance of maintaining confidentiality and implementing appropriate security measures.
“In the context of our business, which encompasses both retail and pathology outlets, connectivity plays a vital role. The advent of 5G technology and its associated computing capabilities will be instrumental in enhancing connectivity and enabling seamless operations. However, as with any business, security remains a major challenge. Threats such as ransomware and data leakage persist, and employees are often the weakest link in safeguarding sensitive information,” says G Radhakrishna Pillai, CIO SRL Ltd.
The future of businesses is poised for a revolution with the adoption of AI, ML, and Data. Embracing the cloud's agility, scalability, and cost-efficiency is the secret weapon for forward-thinking enterprises. Industry experts believe that those who can harness the potential of these technologies will find abundant opportunities.
Key considerations include identifying business objectives, developing a robust data strategy, and fostering a culture ready for change. Agility takes center stage, demanding swift deployment of new models and adept responses to competition. Technology plays a crucial role in providing the desired agility, elevating the customer and employee experience, and enhancing productivity.
For CIOs, managing cybersecurity risks and compliance requires constant vigilance and proactive measures. CIOs face challenges in effectively leveraging technology, aligning it with business objectives, and maximizing its potential for success even in challenging circumstances.
The true power behind this technological revolution lies within skilled individuals. Cultivating a strong tech talent pool becomes a priority as visionary leaders navigate the ever-changing digital landscape. With their expertise, technology can become a driving force for unprecedented success. By aligning efforts, breaking down silos, and fostering a culture that embraces technology, businesses can unlock their true potential and deliver unparalleled value to stakeholders. The future belongs to those who recognize that technology is an integral part of the business—a catalyst for growth and the key to maintaining a competitive edge.
How is tech transforming businesses?
- Global data creation is projected to grow to more than 180 zettabytes by 2025, up from 64.2 zettabytes in 2020. *
- By 2023, 70 percent of companies will employ hybrid or multi cloud management technologies, tools, and processes. **
- By 2024, more than 50 percent of user interactions will be augmented by AI-driven speech, written word, or computer-vision algorithms. **
- By 2024, 5G will deliver network speeds that are approximately ten times faster than the current speeds on 4G LTE networks.
- By 2025, 50 billion devices will be connected to the Industrial Internet of Things (IIoT)**
- The global metaverse revenue opportunity could approach $800 billion in 2024, up from about $500 billion in 2020***
- Low Code Development Platform Market Size is projected to reach USD 148.5 Billion by 2030, growing at a CAGR of 27.8%****