In its Management imaginative and prescient for 2022 CIO presentation in September 2021, Gartner reported a worldwide development. In keeping with the analysis agency, organisations had been present process digital transformation since 2015 – and earlier for some industries. And this development requires a shift in the best way the chief data officer (CIO) operates.
This revolution picked up pace throughout the pandemic. Gartner trade analysts attributed this acceleration to an elevated emphasis on digitisation to compensate for enterprise disruption brought on by Covid-19. To maintain this flurry of innovation, CIOs might want to work with enterprise leaders extra intently than ever.
Sweden is an effective instance of how this modification has occurred. The place of CIO has gone from being a reactive position 15 years in the past, fairly often reporting to the chief working officer (COO), to a proactive position that’s central to the enterprise and studies on to the chief govt officer (CEO). The identical development is going on in just about each trade and in all industrialised nations.
Among the drivers are technological – together with improved cloud providers, higher knowledge science methods, and simpler cyber safety measures to struggle off extra subtle threats. An increasing number of organisations are profiting from the options that at the moment are accessible by way of cloud computing. Knowledge science has matured to some extent the place data can be utilized throughout an organisation in ways in which had been by no means doable earlier than. And naturally, together with the brand new methods of utilizing knowledge has come new regulation round knowledge privateness and safety.
Different drivers are business-related – rising digitisation throughout industries, rising buyer expectations, and hybrid work environments. Clients are used to digitisation in several components of their lives and have come to anticipate it in all industries. Digital transformation is enabling new enterprise fashions designed to satisfy ever-growing buyer expectations. Staff now anticipate to have the ability to work partly from house and partly within the workplace.
There are different drivers for change within the CIO position which are particular to Sweden. There’s a expertise scarcity, which is going on in most developed international locations, however has particular traits in Sweden. In the meantime, economists anticipate a tough interval for startups within the close to time period due to a change in investor mindset. This turmoil might drive expert Swedish professionals to safer work environments.
The opposite necessary growth in Sweden is the nation’s determination to affix Nato, which implies its cyber safety must be strengthened. Threats will turn into extra subtle and extra quite a few. Firms resembling Telenor, which provide basic providers to the nation, must be significantly vigilant.
The CIO as trusted enterprise companion
In some instances, CIOs are seeing their place diminished inside their organisation, main some observers to recommend that “the golden age of the CIO is over”, as Johan Magnussun, director of the Swedish Middle for Digital Innovation on the College of Gothenburg, instructed Pc Weekly.
“Over the previous couple of years, CIOs have undergone a lower in organisational stature and clout,” he mentioned. “They’re an increasing number of transferring into solely specializing in upkeep of the infrastructure, and digital transformation is an increasing number of off the desk. As a substitute, that is dealt with in a decentralised method, coordinated by way of CDOs and different features.”
However some CIOs are rising in stature inside the enterprise. For instance, Kristin Lindmark, who noticed the shift first-hand in banking and insurance coverage, the place she was CIO of SPP for almost eight years. She has since moved on to the telecommunications trade, the place she is CIO of Telenor Sweden and continues to watch the identical development.
“Digital applied sciences at the moment are key in all industries,” mentioned Lindmark. “In consequence, the CIO position has been altering for over a decade and the change has been even sooner over the past two or three years.
“IT was a type of help perform previously, however in monetary providers and telcos, for instance, IT has been a central a part of what corporations in these industries do. I feel you see this motion from being a help perform to a extra central position in just about each trade now.”
Lindmark studies on to the CEO of Telenor Sweden and reckons that if the CIO doesn’t report back to the CEO, it’s a transparent signal that the organisation doesn’t contemplate expertise necessary. Digitisation is an important a part of any enterprise at the moment, which implies the IT chief wants to sit down on the similar desk with the opposite leaders of the organisation, she mentioned. The IT chief additionally must be a companion to enterprise leaders and develop mutual belief with them.
“With the rising availability of cloud providers, shadow IT typically turns into an issue,” mentioned Lindmark. “Gross sales managers may subscribe to SaaS [software as a service] purposes with out telling the CIO. You don’t wish to be the police or the interior guard. You’ll want to have the enterprise perspective in what you do. That may enable you to keep away from a few of the issues. Take note of what the enterprise leaders try to perform and discover methods to ship these capabilities in an environment friendly approach.
“I feel we have now a excessive IT maturity on the whole in Sweden and that, for positive, units lots of expectations. We even have lots of unicorns in Sweden. That impacts shopper behaviours and the expectations on providers.”
Lindmark added: “The unicorns and startups additionally carry an open struggle on expertise as a result of job seekers have lots of fascinating selections. From the CIO’s perspective, it is advisable to have an organisation that folks wish to work for as a result of the competitors is fierce.
“One different perspective in Sweden is that we’re within the technique of changing into a Nato member – and that, in fact, impacts the general safety perspective. Safety is absolutely necessary for telcos, and the subject is on our administration desk in Telenor each week.”
Profession path to CIO
The CIO job remains to be alive and effectively in Sweden, and an necessary a part of recruiting folks into the IT division is to offer them a profession path which may result in the highest. Many candidates are in search of excessive salaries at first, however ultimately they wish to cool down someplace.
“I don’t suppose being a CIO is one thing that you simply dream of if you find yourself slightly lady or slightly boy,” mentioned Lindmark. “In my case, I had an engineering background after which lots of totally different roles, each on the consultancy aspect and in line organisation. This allowed me to study the craft of operating IT from many various views.
“I feel that to be a CIO, it is advisable to have a real curiosity in folks, and it is advisable to be wanting to study and keep forward on expertise as a result of it’s altering actually quick. And then you definitely want a ardour for enterprise to actually perceive what the enterprise is making an attempt to do and how one can contribute with IT. It was a great factor for me coming from 20 years in monetary providers and going into a brand new trade. I can carry concepts from one trade to the opposite.
“Throughout the IT organisation, CIOs must be a trusted chief in an effort to get folks to contribute to what you wish to obtain, but in addition it is advisable to focus on lots along with your friends and companions, such because the enterprise companions inside your organisation. You additionally must be networking outdoors your organisation, each inside your trade and out of doors your trade to get exterior influences.”
Lindmark added: “Recruiting IT professionals has been tough in Sweden over the previous few years, particularly for extremely specialised folks in areas resembling cyber safety, knowledge analytics and cloud computin. However I’m curious to see what occurs later this 12 months. I feel there might be a bent for folks to hunt secure havens if they’re at present working for unicorns or startups. It should most likely get a giant simpler for steady gamers in mature markets to recruit.”
Digital transformation: the previous and the longer term
Trying again on digital transformation over the previous decade, Lindmark has been a part of some profitable transformations, resembling the one she led as CIO at SPP. However she has witnessed instances the place transformation failed. Those who succeed have a stable sport plan, keep on with their plan and patiently keep on their work as they modify their approach of doing enterprise, she mentioned.
The digital transformation Lindmark led most just lately was at SPP, a number one insurance coverage firm within the Nordics specialising in delivering tailor-made pension plans.
The corporate’s technological platforms had been fragmented, which made it tough to compete out there. This dispersed expertise additionally made it onerous to adjust to the rising quantity of regulation round monetary providers.
The corporate started digital transformation in 2016, with Lindmark on the helm of the IT division. The plan was to create what it referred to as Future Core – a standard platform for knowledge and purposes. The shift was not solely about altering expertise – it was about altering the organisation and most enterprise processes.
By 2019, SPP had migrated 90% of its knowledge onto the brand new platform and was saving €5m a 12 months. It had additionally carried out new functionalities that had been compliant with regulatory necessities. By the point Lindmark left in November 2021, SPP had accomplished about 96% of the migration to the brand new platform.
The brand new platform allowed SPP to supply merchandise it couldn’t provide earlier than. Its absolutely digital pension plan was rolled out in 2019 and received the Digital Undertaking of the 12 months award in Sweden.
Trying again on her expertise at SPP, Lindmark mentioned: “These are experiences I attempt to carry into the modernisation journey at Telenor. The telco trade has nice adjustments forward with new 5G providers and a robust give attention to safety.”
The CIO additionally wants to point out management all through the journey, ensuring enterprise continues all through the transformation, mentioned Lindmark. “If you’re going by way of this sort of change over a interval of years, it is advisable to be sure you don’t turn into too internally centered throughout that point. Share what you’re doing with enterprise companions. Sustain with buyer expectations.”
As for organisations that don’t fare so effectively with digital transformation, typically it’s as a result of company management isn’t absolutely behind the hassle and doesn’t present IT leaders with the required assets, she mentioned. Some corporations mistakenly consider that the change is a “fast repair moderately than a serious overhaul”.
Magnussun on the College of Gothenburg added: “Organisations which are performing poorly when it comes to digital transformation have the next frequency of assigning duty for digital transformation to the CIO with out rising the price range and assets at their disposal. Executives wish to have a fast repair and keep away from coping with digital transformation as a transformative initiative.”
As for the altering position of CIO in Sweden, Lindmark mentioned there might be a giant change: “The world is altering quick. It’s already onerous to know the place it is advisable to be in 5 years, and it’s getting even tougher. Companies have to place themselves to maneuver shortly.
“You’ll want to be sure you are ready for the sudden. Which means that you’ve got an organisation that may transfer quick and that isn’t so sluggish to alter. You’ll want to have your general plan, however it is advisable to make certain that you may change course and have an organisation that may transfer with you.”