In today's complex environment, CIOs are facing a demanding set of responsibilities as they navigate rising interest rates, the worsening climate crisis, and geopolitical instability. This landscape mirrors the uncertainty of the 2008 financial crisis.
Despite the uncertainty that lies ahead, CIOs must continue to lead organisations through digital transformation – placing a focus on security, resilience, and sustainability. Prioritising these goals is no small task. However, by adopting innovative technologies and solutions, CIOs can ensure organisations remain competitive and resilient in the face of ongoing challenges.
Technology as a determinant of sustainability and operational efficiency
CIOs are therefore playing an increasingly strategic role in organisational growth by enabling organisations to quickly adapt to changing market demands and technological advancements. A market-focused approach to technology helps CIOs position their companies as leaders in the digital landscape, ready to seize new opportunities.
The CIO plays a crucial role in achieving sustainability within an organisation's operations by leveraging technology to reduce environmental impact and enhance efficiency. This includes implementing energy-efficient IT infrastructure, optimising data centre operations, and promoting the use of cloud services to minimise resource consumption.
CIOs are also responsible for integrating sustainability goals into the company's digital strategy, ensuring that technology investments align with environmental objectives. Additionally, they can drive initiatives that use data analytics for better resource management and support development of sustainable products and services. By fostering a culture of sustainability within the IT department itself and collaborating with other business units, CIOs can significantly contribute to the organisation’s overall sustainability efforts – and its operational efficiency.
Investing in sustainably driven technology infrastructure
Organisations are increasingly relying on CIOs to provide the necessary infrastructure to meet this growing demand for new and evolving technology to support sustainability and operational efficiency. CIOs, in particular, must ensure that digital infrastructure is sustainable at every level – from frontline sensors to the edge, across public and private clouds, and down to the core – as well as contributing to sustainability initiatives in the organisation’s operations.
Companies that expertly collect and leverage data will have the ability to streamline sustainability efforts and improve operational efficiency. This is especially advantageous as the introduction of climate related financial disclosures in the new year filters through our economy. In this context, tools such as AI are becoming crucial, enabling business leaders with quality data and corresponding insights from those complex data sets.
CIOs are investing in sustainably driven technology infrastructure in various ways:
- Smart sensors and IoT: implementing Internet of Things (IoT) devices and smart sensors helps organisations monitor and manage energy use more effectively.
- Data analytics: analytics derived from integrated digital platforms can track and analyse resource usage, enabling informed decisions that enhance sustainability efforts.
- Energy-efficient solutions: adopting energy-efficient hardware and software immediately reduces energy consumption and lowers carbon footprint.
- Cloud services: many CIOs are migrating to cloud-based solutions, which often use shared resources, resulting in more efficient energy use compared to traditional on-premises systems.
- Waste reduction: investing in technologies that minimise waste, such as recycling programs or software that optimises resource allocation, contributes to overall sustainability.
- Sustainable partnerships: CIOs are collaborating with vendors and partners who prioritise sustainability, ensuring that their supply chain and technology choices align with green initiatives.
- Employee engagement: the most committed are also contributing to a culture of sustainability within the organisation by encouraging employees to adopt green practices and use technology responsibly.
By focusing on these areas, CIOs are playing a crucial role in creating a sustainable technology infrastructure that supports their organisations' environmental goals in tandem with operational goals.
Persistent resilience
Alongside the demands of technology evolution and implementing AI responsibly, CIOs must also ensure resilience. The consistent technological advancements in recent years have demonstrated the need for all organisations, large and small, to be resilient while remaining agile.
Embedding AI into enterprise applications can result in widespread impact across organisations. According to Gartner, the vast majority of organisations (80%) will have used generative AI application programming interfaces (APIs) or models, or deployed generative AI-enabled applications in production environments by 2026.
Therefore, incorporating an AI Trust, Risk and Security Management (AI TRiSM) program is increasingly more important. This helps to ensure AI model governance, trustworthiness, reliability, efficacy and data protection, safeguarding businesses, and increasing durability in organisational AI strategy.
Perseverance combined with resilience must become the operating theme for CIOs and IT teams. Retaining agility through unrelenting focus on digital transformation will be key, as hybrid architectures, sophisticated systems and myriad permutations create challenges for IT management and orchestration.
The digital transformation multiplier
Many organisations have recognised the imperative of transformation to enhance their future competitiveness. This trend is gaining traction among CIOs, who are now focusing on establishing a single technology vision.
This shift represents a departure from the historical practices of global enterprises in managing acquired companies and multiple lines of business. In the past, each business retained its distinct technology stacks. However, today, CIOs are increasingly consolidating these tech stacks to enhance overall business performance.
Analysts emphasise that when businesses focus on multiple technology initiatives, they risk losing momentum and efficiency. CIOs must adeptly guide enterprise resources to seamlessly interweave various technology initiatives, implementing them before their impact wanes. The difficult economic conditions to which we’ve been adapting place additional pressure on CIOs to make the right technology investments to suit the objectives of the organisation while being prepared for unexpected disruption.
The CIO outlook for the next 12-24 months will be dominated by meeting a diverse set of challenges across sustainability, resilience, agility, and adaptability, while under the influence of changing economic conditions, tighter budgets, and the relentless march of AI.
A transformative CIO will need to work more closely with every element of the business to inform, partner, and inspire. As almost every challenge faced will have a digital, technological element to the solution, the CIO has once again emerged as one of the most valued roles within a business.
About us:
About Schneider Electric
Schneider’s purpose is to create Impact by empowering all to make the most of our energy and resources, bridging progress and sustainability for all. At Schneider, we call this Life Is On.
Our mission is to be the trusted partner in Sustainability and Efficiency.
We are a global industrial technology leader bringing world-leading expertise in electrification, automation and digitisation to smart industries, resilient infrastructure, future-proof data centres, intelligent buildings, and intuitive homes. Anchored by our deep domain expertise, we provide integrated end-to-end lifecycle AI enabled Industrial IoT solutions with connected products, automation, software and services, delivering digital twins to enable profitable growth for our customers.
We are a people company with an ecosystem of 150,000 colleagues and more than a million partners operating in over 100 countries to ensure proximity to our customers and stakeholders. We embrace diversity and inclusion in everything we do, guided by our meaningful purpose of a sustainable future for all.
Contact details:
schneider@iconagency.com.au
