While industry insights and ‘street talk’ tells us that CIOs and IT teams are being asked to “do more with less” again this calendar year, boards are increasingly focused on driving value through AI while balancing the risks of cybersecurity. Thus, the directives trickling down to Chief Information Officers (CIOs) are becoming increasingly challenging to plan, design and execute.
Here, we explore the themes we are hearing at executive and board levels relating to digital technology.
IT Modernisation driving efficiency and experience
IT modernisation is a critical priority for CIOs as they seek to enhance operational efficiency, improve customer experiences, and drive innovation. This involves upgrading legacy systems, adopting cloud-based solutions, and implementing automation technologies. By modernising their IT infrastructure, CIOs can create a more flexible and scalable environment that supports the evolving needs of their businesses.
Naturally, the topic of IT Modernisation often encompasses migration to cloud, implementation of SaaS CRM and ERP solutions.
If your organisation is still operating in Spreadsheet hell, you may find comfort in the fact that our team continues to develop solutions for businesses of all sizes seeking to migrate from manual Excel processes to automated, cloud-based SaaS solutions.
However, with Satya Nadella recently offering his vision of the future asserting that the software industry is on the brink of a monumental shift away from SaaS and towards Agentic AI, tech leaders are now faced with fundamental questions surrounding their IT roadmap.
Our position is that prospective SaaS projects should not be halted as we may be a number of years away from fully Agentic AI solutions being feasibly implemented within our organisations. But IT leaders should be appraising a vendor’s AI capability and future vision as essential decision making factors.
AI Integration: Enhancing Decision-Making and Automation
Organisations with a good level of digital maturity are aggressively exploring generative AI solutions as a means to transform business operations, enhance decision-making, improve customer experiences, and automate repetitive tasks. By integrating AI into operational systems, CIOs are gaining valuable insights from their data, identifying new opportunities for growth, and improving the efficiency of their processes.
An increasingly common application of AI in the enterprise is predictive analytics. By analysing historical data, AI algorithms can identify patterns and trends that can be used to predict future outcomes. This information can be invaluable for decision-makers, as it allows them to make more informed decisions and proactively address potential challenges.
Simultaneously, tech leaders are also uncovering the shortcomings in data quality which directly impacts the efficacy and accuracy of generative AI solutions. The impact of poor data quality then restricts an organisation’s ability to advance its AI capability.
Referring back to our IT Modernisation theme, CIOs must incorporate data governance into transformation projects to ensure data sources are AI-ready.
Measurable Value: Demonstrating the Impact of IT
In addition to IT modernisation and AI integration, CIOs are also prioritising the measurement of the value that IT brings to the business. This involves identifying and tracking key metrics, such as revenue growth, cost savings, and customer satisfaction. By demonstrating the value of IT, CIOs can gain the support of senior management and secure funding for future initiatives.
One way to measure the value of IT is to conduct a cost-benefit analysis. This involves comparing the costs of implementing and maintaining IT systems to the benefits that they provide. By quantifying the benefits of IT, CIOs can demonstrate the return on investment (ROI) of their technology initiatives.
In the last 12 months, Newpath has been regularly engaged by tech leaders to help deliver IT value frameworks while working with stakeholders to perform digital platform cost-benefit analysis.
The Shift from Complexity to Execution
In addition to the above priorities, CIOs are also facing a shift from complexity to execution. This means that they are increasingly being asked to deliver tangible results and demonstrate the value of their work. This requires a focus on efficiency, agility, and collaboration.
To achieve this, CIOs need to develop a clear vision for their IT department and align it with the overall business strategy. They also need to build a high-performing team of IT professionals and empower them to make decisions and take ownership of their work.
The strategic approach for for AI Readiness
As AI continues to evolve, CIOs need to ensure that their organisations are prepared to adopt and leverage this technology. This involves developing an AI strategy, investing in AI training and education, and building a data-driven culture.
By proactively preparing for the AI revolution, CIOs can ensure that their organisations are well-positioned to take advantage of the opportunities that this technology presents.
Newpath’s consulting team are regularly asked to undertake strategic works helping CIOs to develop IT transformation roadmaps for executive and board audiences.
The Push for Vendor Consolidation
Another trend that is emerging among CIOs is the push for vendor consolidation. This involves reducing the number of vendors that their organisations rely on. By consolidating their vendor relationships, CIOs can simplify their IT operations, reduce costs, and improve vendor management.
This has placed downward pressure on the digital services sector as vendors struggle to meet broad client demands spanning website development, cloud app development, mobile apps and CRM/ERP projects under one roof.
Conclusion
In conclusion, CIOs are facing a number of key priorities in 2025, including IT modernisation, AI integration, and measurable value. By addressing these priorities, CIOs can help their organisations to drive business transformation, improve operational efficiency, and create a more competitive advantage.
As the world becomes increasingly digital, the role of the CIO is only going to become more important. By staying abreast of the latest trends and technologies, CIOs can ensure that their organisations are well-positioned to succeed in the digital economy.
A good first step is to review your organisation’s digital maturity in alignment with your organisation’s business strategy. Speak to our consulting team to help you conduct this assessment and explore opportunities for transformation.
