CEOs recognize the need for cultural change
Culture change is a key aspect of digital transformation. The 2018 Gartner CIO Survey found CIOs agreed it was a very high-priority concern, but only 37 percent of CEOs said a significant or deep culture change is needed by 2020. However, when companies that have a digital initiative underway are compared with those that don’t, the proportion in need of culture change rose to 42 percent.
“These survey results show that if a company has a digital initiative, then the recognized need for culture change is higher,” said Mr. Raskino. “The most important types of cultural change that CEOs intend to make include making the culture more proactive, collaborative, innovative, empowered and customer-centric. They also highly rate a move to a more digital and tech-centric culture.”
Digital business matters to CEOs
Survey respondents were asked whether they have a management initiative or transformation program to make their business more digital. The majority (62 percent) said they did. Of those organizations, 54 percent said that their digital business objective is transformational while 46 percent said the objective of the initiative is optimization.
In the background, CEOs’ use of the word “digital” has been steadily rising. When asked to describe their top five business priorities, the number of respondents mentioning the word digital at least once has risen from 2.1 percent in the 2012 survey to 13.4 percent in 2018. This positive attitude toward digital business is backed up by CEOs’ continuing intent to invest in IT. Sixty-one percent of respondents intend to increase spending on IT in 2018, while 32 percent plan to make no changes to spending and only seven percent foresee spending cuts.
More CEOs see their companies as innovation pioneers
The 2018 CEO survey showed that the percentage of respondents who think their company is an innovation pioneer has reached a high of 41 percent (up from 27 percent in 2013), with fast followers not far behind at 37 percent.
“CIOs should leverage this bullish sentiment by encouraging their business leaders into making “no way back” commitments to digital business change,” said Mr. Raskino. “However, superficial digital change can be a dangerous form of self-deceit. The CEO’s commitment must be grounded in deep fundamentals, such as genuine customer value, a real business model concept and disciplined economics.”
More detailed analysis is available to Gartner clients in the report “2018 CEO Survey: CIOs Should Guide Business Leaders Toward Deep-Discipline Digital Business.”
Mr. Raskino will further examine key CEO and CIO issues during the Gartner’s CIO Leadership Forums and CIO & IT Executive Summits. Follow news and updates from the events on social media using #GartnerCIO.