Digital trends are having a growing impact on the way companies are operating, according to a recent study from the research company Gartner.
The survey of CIOs across Australia and New Zealand revealed a growing trend towards companies finding innovative strategies to overcome the digital risks their company faces.
Among the biggest changes include shift in the nature of the CIO role – moving away from a position where they simply manage IT services to one where they take a significant role in strategy planning and other activities among senior management.
Part of the reason for this shift is a recognition that the challenges of digital competition are changing the way companies approach risk management. In fact, 93 per cent of respondents to the survey felt that digital technology is unlocking new risks for companies. A further 63 per cent reported that their risk management strategies were struggling to keep up with these changes.
As organisations seek a broader level of understanding of the technology challenges their organisation faces, CIO roles are shifting to offer more advice to other senior managers. Gartner found that 35 per cent of those surveyed are now reporting directly to a CEO, suggesting a broader base of concern around strategic risk within the IT sector of major companies.
Gartner vice president Graham Waller suggested these changes would require companies to disrupt their internal strategies.
"Existing business processes, business models, information, technology and talent suffer from legacy inertia and complexity," said Mr Waller.
"CIOs need to simplify business processes, models and ecosystems. They need to flip from legacy first to digital first, and from passive reporting to an active search for insight."
As the strategic risks that come from digital technology are only going to increase with time, the need for creative responses from senior managers is only going to increase with time.