To increase their influence, CIOs need to focus on the power, scale, and dynamics of the digital business based on connections to people and things, interconnections and relationships, and on the value of algorithms, according to Gartner, Inc. These algorithms accelerate value in the digital economy in what Gartner analysts call the “economics of connections.”
During the opening keynote today at the sold out Gartner Symposium/ITxpo, which is taking place here through Thursday, Gartner analysts described the economics of connections as the creation of value through the increased density of interactions between business, people, and things.
“Value can mean multiple things. It can be the knowledge and the insight you gain, or it can be the trusted relationships that you build,” said Frank Buytendijk, vice president and distinguished analyst at Gartner. “In the end, value is what you achieve for customers or citizens. The greater the density of the connections, the greater potential value you reap.”
CIOs can create that density in three steps: Give, Take, and Multiply:
Give
access to everything that’s more valuable shared than locked away.
Take
active advantage of all other resources out there. Tap into the power of
all kinds of computing and information networks.
Multiply by
allowing your connections to interact directly with each other.
Mr. Buytendijk shared the example of Tesla, which has shared its patents on superchargers for free. He said Tesla believes that if others invest too, everyone will benefit from more pervasive and cost-effective technology. While others will benefit, Tesla understands that as everyone adopts its standards, Tesla can grow its market.
“Give and take leads to an active dynamic network of connections, in which you are the guiding light, the main influencer,” Mr. Buytendijk said. "However, the leverage is still limited. All people, business and things have value to offer. That value is only truly unlocked if they start to interact with one another. The goal becomes to multiply these connections. Facilitated and encouraged by you, but not controlled by you. Creating a tightly woven fabric, a ‘mesh’ of connections.”
Remove the Obstacles
To realize the promise of the economics
of connections, CIOs have three obstacles to remove:
A control
mindset
Inertia
Lack of trust
“This is all about mindset,” said Mary Mesaglio, research vice president at Gartner. “Control moves to influence. Inertia is removed by divesting, and distrust should be turned into trust, within IT, within the enterprise and beyond.”
Shift from Control to Influence
To truly drive results, CIOs
must evolve to becoming the trusted ally. “The trusted ally CIO is a
leader for information and technology across the entire enterprise.
Trusted allies have the ability to lead whether technology ownership
sits inside, or beyond the IT department,” Ms. Mesaglio said.
Gartner's 2015 CIO Agenda Survey shows that over half of trusted ally CIOs report that they lead digital teams across their enterprise, versus a third of all other CIOs. Trusted allies are more involved with business change and strategy, they do more crowdsourcing, and they work more with start-ups.
Ms. Mesaglio said that one trait that makes CIOs stand out from other executives is their “intuitive thinking”. CIOs are intuition outliers. Intuitive thinkers are better at solving complex problems in creative ways. With the arrival of the algorithmic economy, it creates opportunities for the CIO’s skills, capabilities, and insights. This will widen the circle of influence for the CIO.
Shift from Inertia to Divesting
As CIOs move on the path to
create more value through increased influence, they must divest. IT
organizations need to overcome the inertia that has built up over
decades.
Ms. Mesaglio highlighted a few examples of where it’s time for IT to divest itself:
Legacy fatalism: the belief that you cannot get free from legacy systems. These are applications and infrastructure that either paid off long ago, or will never see a payoff. Take a good look at pet projects, technical debt, and historical duds that might be dragging the department. Cut them lose
Ownership bias: where you think that building, owning and operating yourself will lead to better results. The reality is if someone else can do it better, and will do it better, let them. For example, citizen developers, those outside the CIO’s control, are the future of software development. Find them and embrace them.
Trust and Verify
Trust is an emotion. “It is the confidence
people have in your future behavior,” Mr. Buytendijk said. “Algorithms
allow companies to trust people to the exact level they deserve:
dynamically and at scale. Trust goes two ways. People must trust your
business too, to connect to you. It is the confidence people have in
your future behavior.”
Mr. Buytendijk highlighted four essential elements to managing trust:
-produce
results
-be predictable
-understand human context
-be
visible
About Gartner Symposium/ITxpo
Gartner Symposium/ITxpo is the
world's most important gathering of CIOs and senior IT executives. This
event delivers independent and objective content with the authority and
weight of the world's leading IT research and advisory organization, and
provides access to the latest solutions from key technology providers.
Gartner's annual Symposium/ITxpo events are key components of attendees'
annual planning efforts. IT executives rely on Gartner Symposium/ITxpo
to gain insight into how their organizations can use IT to address
business challenges and improve operational efficiency.
Video replays of keynotes and sessions are available on Gartner Events on Demand. Follow news, photos and video coming from Gartner Symposium/ITxpo on Smarter With Gartner, on Twitter using #GartnerSYM, Facebook and LinkedIn.
Upcoming dates and locations for Gartner Symposium/ITxpo 2015 include:
October
19-22, Sao Paulo, Brazil
October
26-29, Gold Coast, Australia
October
28-30, Tokyo, Japan
November
2-5, Goa, India
November
8-12, Barcelona, Spain
About Gartner
Gartner, Inc. (NYSE: IT) is the world's
leading information technology research and advisory company. The
company delivers the technology-related insight necessary for its
clients to make the right decisions, every day. From CIOs and senior IT
leaders in corporations and government agencies, to business leaders in
high-tech and telecom enterprises and professional services firms, to
technology investors, Gartner is the valuable partner to clients in
approximately 10,000 distinct enterprises worldwide. Through the
resources of Gartner Research, Gartner Executive Programs, Gartner
Consulting and Gartner Events, Gartner works with every client to
research, analyze and interpret the business of IT within the context of
their individual role. Founded in 1979, Gartner is headquartered in
Stamford, Connecticut, USA, and has 7,100 associates, including more
than 1,500 research analysts and consultants, and clients in 90
countries. For more information, visit www.gartner.com.
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