Solving the CIO’s Disruption Dilemma — the Blended IT Strategy
The Economist Intelligence Unit
April 20, 2016
http://businessvalueexchange.com

http://businessvalueexchange.com/blog/2016/04/20/solving-cios-disruption-dilemma-blended-strategy

The CIO, who is on the front line of digital disruption, faces a digital dilemma. First, disruption creates an urgent pressure for transformation. Long-established firms are being “Ubered” and “Amazoned”. Insurgents may be taking market share through lower costs, faster time-to-market and superior customer experience. In many firms, customers, competitors, CEOs and boards are looking to the CIO for rapid digital transformation and looking for it now.

But the CIO is also charged with providing the stable platform that supports ongoing operations. These are the operational sinews that process the orders, book the sales, schedule the parts and ensure regulatory compliance. Failure or down-time of these back-office processes, which often reside on legacy technologies, can be disastrous for the firm (and for the CIO).

The dilemma is amped up by pressures of risk and time. Accelerated transition can be high risk—data that does not integrate, systems that go down, more human error in an uncertain environment. Added to this is the risk factor of an overstretched IT department trying to make everything happen at once.

Finally, transformation isn’t just about machines—it is about people. For example, a bank may have IT personnel who are steeped in a culture of risk management, process and strict regulatory adherence. These are extremely valuable assets that cannot be morphed into agile, digital-savvy disruptors overnight.