Last updated: July 28th, 2020
Gartner’s top CIO priorities were just released, and BI and analytics is at the top followed by cloud, mobile and digitization. To us, this comes as no surprise. We have been advocating pervasive BI and analytics for revenue generation and customer facing applications for many years. We believe that BI and analytics have to be built into the business model (as opposed to in the cost centers). But let me explain why this is important.
Take a deeper look at the Gartner 2016 CIO Agenda Survey. The key conclusion from this survey is: “The 2016 CIO Agenda Survey data shows that digitalization is intensifying. In the next five years, CIOs expect digital revenues to grow from 16% to 37%. Similarly, public-sector CIOs predict a rise from 42% to 77% in digital processes.”
Digitization means more data. And when more data is harnessed correctly it is converted into more knowledge, more opportunities and more revenues. This is where BI and analytics play a crucial role – in the conversion process from row data to value. And for the value to materialize the BI and analytics have to be operationalized, or in other words made integral part of the money making business processes. That merits making BI and analytics the top priority for the CIO.
As the survey points out, “nearly 40% of CIOs report that they are the leaders of digital transformation in their enterprise”. And while BI and analytics may rightfully be the top priorities, as this makes intuitive and logical sense, there is a caution and skepticism because for many years enterprises have been failing to get the perceived ROI on those technologies. There is wide gap between expectations and reality.
In my opinion, we are about to turn corners on this and indeed materialize the benefits of BI and analytics. And the reason I predict that is precisely because the CIOs are leading the digitization of operational processes. For the first time the CIO’s are becoming owners of business processes. In the physical world the business process remained largely decoupled from the analytics. But the digitization of business process allows us to combine those two. In turn, this will lead to more efficiencies, cost savings, margin improvements, and new revenues. Naturally, the BI and analytics technologies will have to evolve to be more app development friendly, i.e. to provide more app development and within app integration capabilities.
For more on what your organization needs to do to stay ahead of the game-changing technology trends afoot, view the recording of my latest webcast on how to Shape (and Shake) Up You Data and Analytics for 2016.